Contractors License?

Not sure what the law is in other states, but here in CA the state want's a piece of everything! :geek: 

And so a service person in CA Can Not legally do a job over $500 including labor and materials , without having a state Contractors License.

What's the deal in the state you live in?

I'm not going to admit I ever break the law, but  

I've thought about becoming a flooring contractor in the state of CA many times, but then once I look into the cost, time and hassle it usually scares me away.   But I sometimes I do worry/think about the possibilities of an unhappy customer (which we never have right?!)  or a jealous/unhappy competitor reporting me, or even being questioned by an insurance company when billing them for a flood/dry out/restoration job.  

I'm curious, what the law is in your state, and if you're state licensed?

Not here. Just a business license. $50 a year.

Just a $75/yr business license in DE. I am not a lawyer & I don't even play one on TV... But, it looks like you only need a contractors license in CA if you are installing or repairing (flooring) and/or doing the cleaning prep work for an installation, or actually building or repairing (including handyman work) a structure. I can't see where anything we do fits in to these categories. Even the shower makeovers you do (sorry, I think that was you) looks like it is a cleaning process, not a repair process. In any case the penalties in CA are stiff including jail time for not having a license if you are supposed to have. I would sit down with a business lawyer and get a definitive answer.

I only need a DBA because I am a service provider.

IF I did replacements or construction type work, then I would have to also have a contractor's license. AND more liability insurance.

It is often based upon cost of the work. Once over a certain cost, it is considered a "contractor" level job and would require a license.

Keep in mind that local County and City codes can require contractor license as well for certain tasks. I could do radon mitigations in some areas without a contractor's license while others required one.

Not in NJ. They just have all kinds of other things they charge for from the state. Not even sure what half of them are for!

milspec6 wrote:It is often based upon cost of the work.  Once over a certain cost, it is considered a "contractor" level job and would require a license.

That's what I always thought, based on job cost/total including labor and materials can not exceed $500 without a contractors license in CA.

But Joe/Carpet Daddy brings up some good pints I'll have to look into.
Thanks!!

Hey carpetdaddy…here in delaware each municipality expect (i.e.) ncc, middletown, kent county, etc etc expect you the contractor to be licensed with them for doing business within their twon, municipality. Here in middletown l&i cruise around looking for contractor vehicle and pull their name in their data base. Guess what? If you come up as not having a business license they will knock on the door you are working at and force you to stop work until you get a business license with them. It happen to my buddy and me. I left a business card at a rental home and L&I called me cause they inspected the home that was up for rent. They literally warned that a business license was needed or else penalties would follow. State license is not enough. Its nothen more then out right greed. I dont have the time nor, money nor interest to divide my pay to every township i stop in. GREED! I payec for that license that year year.
I keep a low profile and quickly go in and out of Middletown. These politicians are greedy. They tax you out of business.

Raffy wrote:Hey carpetdaddy…here in delaware each municipality expect (i.e.) ncc, middletown, kent county, etc etc expect you the contractor to be licensed with them for doing business within their twon, municipality. Here in middletown l&i cruise around looking for contractor vehicle and pull their name in their data base. Guess what? If you come up as not having a business license they will knock on the door you are working at and force you to stop work until you get a business license with them. It happen to my buddy and me. I left a business card at a rental home and L&I called me cause they inspected the home that was up for rent.  They literally warned that a business license was needed or else penalties would follow.   State license is not enough. Its nothen more then out right greed. I dont have the time nor, money nor interest to divide my pay to every township i stop in. GREED!  I payec for that license that year year.
I keep a low profile and quickly go in and out of Middletown. These politicians are greedy. They tax you out of business.  

Sounds like you're referring to a city/county 'business licenses'?? And what the topic is and we're discussing is a "state contractors license"..................BiG difference.

Yeah but know the full scope or else you'll find out the nuts and bolts of business the hard way.
If i read correctly, carpetdaddy said thats all is needed in delaware is a state license. You need other licenses as well.  May not apply in you areas of business but it does apply here in delaware.

Here's the AZ Statue's definition of a Licensed Contractor

(a) Construct, alter, repair, add to, subtract from, improve, move, wreck or demolish any residential structure, such as houses, townhouses, condominiums or cooperative units. Residential structures also include apartment complexes of four units or less and any appurtenances on or within residential property lines.

(b) Connect such residential structure to utility service lines, metering devices or sewer lines.

(c) Provide mechanical or structural service for any such residential structure.

Raffy wrote:Yeah but know the full scope or else you'll find out the nuts and bolts of business the hard way.
If i read correctly, carpetdaddy said thats all is needed in delaware is a state license. You need other licenses as well.  May not apply in you areas of business but it does apply here in delaware.

Raffy, that is correct. In Delaware all you need is a business license. If you are in a specialized field you may have to register with different agencies. If you are a General Contractor you need a General Contractors license which is issued the same way.

Delaware State Licensing Requirements
Any person desiring to engage in business as either a contractor (any person engaged in the business of furnishing labor and materials in connection with all or any part of the construction, alteration, repairing, dismantling or demolition of buildings, roads, bridges, viaducts, sewers. water and gas mains and every other type of structure as an improvement, alteration or development of real property) or subcontractor (any person, partnership, firm, corporation or other business entity which enters into a contract directly with a prime contractor or other subcontractor) in the State of Delaware, whether such person is a resident or non-resident of Delaware, must obtain a license from the Division of Revenue.

(q) How do I get my contractor license in Delaware?

(a) Any contractor conducting business activity in Delaware is required to register with and obtain a business license from the Delaware Division of Revenue.

Send a completed application along with documenting compliance with the bonding requirements, unemployment and workers compensation insurance and the license fee. All forms are included in the Residents Contractors Package which is available on the State of Delaware website. Out of state contractors need to use the Non-Resident Contractors Package.

Department of Finance; Division of Revenue
Carvel State Building
820 North French Street
Wilmington, DE 19801
(302) 577-8778
www.revenue.delaware.gov

(q) Are there any Education, Exam or Experience requirements to get my Delaware Contractors License?

(a) No, not at this time. However, Asbestos Abatement Certification requires licensing and training.

(q) Is contractor continued education required in Delaware?

(a) No, not at this time. Licenses expire on December 31st of each year and are renewed for a one-year period for $75.

in VA there are class A, B and C contractors and these contractors are limited in size and scope by the type of license. These licenses are needed for"construction " type projects such as roofing, window replacement, flooring installation etc.
As a service provider, we are not making any changes to the physical structure per se and , as such, are not required to have a contractors license.
If you are involved in water restoration work, any repairs would require a contractors license.