Essential Steps to Getting Your Texas Contractor License
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Securing a contractor license in Texas is essential to operate a legal business—but the process can be daunting, especially for those unfamiliar with the licensing system’s ins and outs. It is also thorough because Texas only wants to license proven and tested contractors. Luckily, we’re here to help. Keep reading to learn about the five essential steps you need to take to get your Texas contractor license.
1. Choose the Right Classification
There are dozens of different contractor licenses available in Texas, so you must choose the right one for your business. The best way to do this is by familiarizing yourself with the license classification codes and their corresponding job descriptions. Once you’ve done your research, you should know which code best describes the work you’ll be doing. And prepare to apply for your Texas contractor license.
2. Get Bonded and Insured
Your business must be bonded and insured to obtain a contractor license in Texas. A surety bond is a financial guarantee that ensures the completion of the job according to specifications. You can get bonded through most commercial surety companies. The ultimate objective is to make sure that your bond amount meets or exceeds the requirements set forth by the state of Texas. As for insurance, you’ll need both general liability insurance and workers’ compensation insurance. These policies will protect you and your employees in case of an accident or injury on the job site. If you are an individual working alone, you can get a Certificate of Self-Insurance from the Texas Workers’ Compensation Commission.
3. Complete the Application Process
Once you’ve gathered the necessary documents, you’re ready to begin the Texas contractor license application process. The first step is to create an account with the online portal used by the state of Texas to process contractor license applications. You’ll need to enter your business information, pay the required fees, and upload any supporting documents. The entire process can be completed online, but it’s important to note that it can take up to 30 days for your application to be processed.
4. Take the Examination
After your application has been reviewed and approved, you’ll be notified that you’re eligible to take the examination for your chosen classification code. The test covers everything from business management principles to safety regulations, so it’s essential to do some studying beforehand. You can find study guides for each classification exam on TDLR’s website.
5. Pay Your License Fee
Once you’ve passed your examination and received notice from TDLR. The last step is to pay your license fee, which must be renewed every two years. The cost of your license will depend on several factors, including your chosen classification code and whether or not you plan on carrying workers’ compensation insurance.
Completing these five steps will put you well on getting your Texas contractor license. But you need to remember that this is just an overview of what’s involved in the process. For more detailed information, please consult TDLR’s website or contact our office directly; we’d be happy to help.