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Question DetailsAsked on 7/1/2017

how much does a license cost

how much does a contractors license cost

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1 Answer


If you are asking as a homeowner/customer, you should not be paying for the contractor's license costs directly - they should be wrapped into his overhead and general rates unless you are asking him specifically to work in your locale, outside his usual service area - sometimes needed for specialty work on remote cabins and such or because he is not licensed in your county or town but is generally in his work area, for instance. If that is the case have him put the cost he needs into his overall bid amount, not as a separate charge even if he needs a separate license, so if his estimate was wrong you do not ending up being hit with significant additional costs. Depends where you are - some states charge about $50-200 for a one or two-year license, some more like $300-400. Then there are some areas doing local contractor licensing too - NYC for instance runs commonly in the $300-450 range depending on the license being applied for. In some areas you have state, county/borough, and city licensing - so three levels of license required. It is very common to also need a business license at state and local level - again, can reach 3-4 levels of business licensing in some cases, typically at about $50-100/year each.

And of course sometimes you need more than one license - say a General Contractor may also need an Asbestos Abatement or LEad Abatement license. Then there are the tests required in most areas at least for the GC and "expert trades" - commonly $50-100 fee per exam you apply for (and for each retake if you don't pass first time around). Preparation courses for the license exam, if you need that, commonly $150-1000 depending on discipline and whether taught by a "non-profit" government body or college or by a private institute, and whether on-line or in-classroom. And of course in some states and disciplines you have to serve an apprenticeship before you can be individually licensed. And of course don't forget the following - exact type names vary by company, state, and whether private or government job), and various companies sometimes wrap several of them into one coverage, others do it as riders, others as separate policies: - Bonding (several different types available including Contract Completion, Third Party Liability Protection where owner requires it, Performance, Theft and Security), - general business / comprehensive / inland marine and/or maritime insurance as applicable (some businesses need all of those for different types of work), - maybe Completion or Works in Progress insurance to protect the value of the work until it is turned over to the client, - Jobsite Loss insurance sometimes additional (for theft/vandalism of job), - vehicle insurance, - equipment and tools insurance, - excess liability or umbrella insurance, - worker's compensation insurance (required pretty much in all states if you have any employees), - state disability / state unemployment / social security / medicare coverage insurance (commonly submitted to feds and state like you do employee incoime tax withholding), - health, life, Accidental Death and Disability insurance if offered - for employees or yourself - probably a half dozen other types of potential coverage I have not remembered - and TONS more if working in foreign country

Answered 3 years ago by LCD

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