Who Needs A General Contractors License?

If you are launching your own home repair or construction business, the thought of obtaining a license has probably crossed your mind. While there are many home services that can be done without a license, being a certified contractor opens new doors that you may want to consider.

Does this mean you won’t be as profitable as a handyman? Not at all. There are several individuals who run profitable handyman businesses; however, they usually conduct small-scale projects because anything larger would require a general contracting license.

So, who needs a general contractors license? Anyone who is working on a project that exceeds a specific amount (varies by state) needs one. There are also some other factors to keep in mind that we’ll cover below.

Things to Consider

You first want to consider what services you plan to offer or are already offering your clients. Small home repairs and improvements usually don’t require a license. However, if you want to expand your business, increase your earning potential, and build a larger clientele then a license will be necessary.

Every state has different rules and regulations when it comes down to construction projects. Some will require a license for all construction or building projects while others don’t. Our first suggestion is to look into state laws to determine if you need to have one since conducting work without a license can lead to being fined or even losing your business.

If you are planning on offering larger projects like building homes or commercial residences, you definitely need one. Without this requirement, anyone could build homes! That means the quality of these projects would be severely compromised and people run the risk of being in danger.

The Benefits of Having A License

Then, of course, there are the benefits of obtaining your contractor’s license. Here are the two main benefits you’ll receive right off the bat:

  • Credibility. Think about it – anyone could claim to be a builder, but how do you know that’s true? Therefore, there are laws in place when it comes down to business in construction. Without a license, clients run the risk of being scammed and losing out on a large sum of money.
  • Earning Potential. You can expect your earning potential to increase significantly with a license since you’ll have access to larger projects and clients will usually pay more to a licensed builder than a handyman.

Now despite these immediate benefits, obtaining a license can be discouraging because of the process the handyman needs to go through. They are required to take an exam to prove that they are ready to be licensed contractors. This is not an easy test, however, reliable providers like Contractors Institute can help you pass the license exam with flying colors. They offer prep courses to make this exciting process as stress-free and simple as possible.

Wrap Up

We hope we’ve given you a better idea of a general contractor’s license is the right choice for you. Remember – starting off as a handyman is a great way to get experience, build clientele, and expose yourself to a series of projects. But eventually, you might want to move up in project scale and income.

After acquiring this necessary experience, it’s a smart idea to consider a general contractors license as it will open new doors for you and increase your business’s profit. Regardless of the course you decide to take, be sure that you enjoy what you do, are being profitable, and understand the laws associated with running your business.

For more information on this, visit your local contractor’s board website online.

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