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Why a License is Essential for Starting a Contracting Business

If you’re thinking of starting a contracting business, there will be a mixture of options and hard requirements you should be seeing to during this process. Within the latter category, one area that’s an absolute requirement for anyone starting a contracting business is a proper contractor license within your state.

At Contractors School, we’re happy to assist numerous contractors looking to start their business in varying areas, including several contractors license education and class programs that ensure you have the proper licensure at all times. Why is having a license so important for starting your contracting business? Here are some basic reasons.

It’s Illegal Not To

In virtually every state and situation, it’s a full-on legal requirement to carry a proper contractors license before starting your contracting business. Without this, you can’t legally practice as a contractor within that state–and that means exposing yourself to potential legal issues down the line.

The specific requirements here will vary between states, but there’s always going to be a license or licensing system in place that contractors must adhere to.

Penalties Cost Far More Than the License

Penalties for operating a contracting business without a license can be drastic. Depending on the state and your specific circumstances, you can face fines of thousands, or even tens of thousands in some instances.

This is a hefty price to pay for operating without a license — and, as mentioned earlier, all of this could have been easily avoided by just getting the licensing process out of the way from the start.

Clients Demand It

There are a vast number of clients in the contracting world who simply will not consider a contractor who’s not properly licensed. If you’re looking to start a contracting business and have clients as part of your overall plan, this is an absolute requirement; you’ll likely find it extremely challenging (if impossible) to get established without these contracts.

This is for several reasons, including the legal one we just mentioned. Clients are typically well aware that it’s illegal for an unlicensed contractor to work, and they’d rather not have to deal with these kinds of legal headaches.

Larger Projects Are Available

For some contractors, a large part of the appeal to starting a contracting business is the potential for large projects. And if you’re looking to get involved in those types of work, having a contractor license is an extremely valuable asset.

In many cases, clients will not even consider working with unlicensed contractors on larger jobs–but when you’ve got your license, they’re much more likely to consider you.

As you can see, there are several good reasons why a contractor license is such an important part of starting your contracting business. At Contractors School, we’re proud to help contractors get the licensing process out of the way — and our programs have helped individuals all over the country meet their goals in this area. Contact us today to learn more!


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