How to Get General Contractor License Alabama

The first step to getting your contractor license in Alabama is to create a business unit. Anyone working in the state of Alabama must be registered with the Secretary of State of Alabama. You need to choose the type of business structure you want to set up, depending on the amount of liabilities and tax consequences. The U.S. Small Business Administration has a useful breakdown of the types of business structures (e.g. B, LLC, Corp., Partnership, etc.) to help you make a decision. Without a license in any state, working on any type of construction project is usually a bad idea. Alabama, in particular, is very strict when it comes to work ordered without a license. Working without a permit may affect your right to claim payment by filing a mechanic lien – but that`s not all. If you are caught assigning a job without work, you could face serious penalties. This guide will give you the details you need to know about getting a contractor`s license in Alabama. For general contract work, the State of Alabama grants two types of licenses: General Contractors must file a financial report signed by a CPA or other professional approved by the Board of Directors.

You will need at least $10,000 in working capital and a line of credit to meet this need. You also need to show that you have construction experience. So be sure to list the contracts you`ve worked on, project locations, and completion dates. Also add three reference letters. If you already have contracted projects, provide their contact information. I am a subcontractor. My business is mainly focused on project management, although we all have 20 years of experience in construction. Many circumstances have led to the following. Without killing you with details, our client ended our professional relationship in June 2021. They owed us money. Without a license, you are limited to working on smaller, lower-paying projects. The good news is that there are many benefits to becoming official.

A license becomes: The required form is included in the Prime application and in the section of the forms on the website called State License Verification. It must be submitted with an up-to-date copy of your license in this state. Subcontractor – Any subcontractor who performs work for a licensed general contractor if the work exceeds $50,000 is required by law to also have a subcontractor`s license. As mentioned above, you must register and obtain your business license if you wish to perform contract work as a company in the state of Alabama. For more information on business registration and licensing, visit the Alabama Secretary of State`s website. Start by registering your business with the Alabama Secretary of State. Decide what type of business unit you want. You can choose to register as a sole proprietor, partner with someone, or start a certain type of business. This link to the Small Business Administration explains the differences. An overview of your general contractor`s licensing process can help you determine if you`re ready to begin your application process: If you`re a prime contractor, you`ll need to take and pass the Alabama Business/Project Management exam. You can search for an exam page and register for the tests on the PSO exam online website. Working on any form of construction work without a license is almost always a terrible idea in any state.

Alabama can be very strict in this regard. Working without a license may compromise your ability to raise funds through mechanical privilege, but that`s not the end. When it comes to getting a contractor`s license, every state is different. Here`s what you need to know about the licensing process in Alabama. It pays to get your contractor`s license, even if it`s a bit tedious at first. But the day of annoyance can prevent years – and thousands of dollars – of risk. Thus, almost half of all entrepreneurs have or will resume their normal activities. According to ZipRecruiter, general contractors in Alabama earn an average of $57,122 per year, with some reaching as high as $101,543.

Below, we`ll look at the steps you need to take to get your general contractor license. To apply for an electrician`s license or schedule your exam, contact: Alabama Electrical Contractors Board 610 South McDonough Street Montgomery, AL 36104 1-334-269-9990 Website Additionally, it is important to note that with a contractor`s license, you are on the right side of the law. If you end up working on a project without a project, you could be sued by both the client and the state. Contractor licenses are regulated by the Alabama Licensing Board for General Contractors. The state of Alabama offers two general types of contractor licenses: subcontractors must receive letters of reference, while the general contractor application actually contains forms that must be completed. Each application requires three internship references. They should come from a licensed general contractor, a registered architect, a licensed professional engineer or any other qualified person designated by the board. Under Alabama law, you don`t need an Alabama Craftsman`s License for projects worth less than $50,000.

This is the limit for an entrepreneur`s license and it is generally recommended to start with smaller artisan projects to develop skills and experience. I am a project manager who wants to become a general contractor who opens my own business. I need to know if there is an upper limit for the annual value of the contract or if it is only by contract? I will divide all my work. I will be. If you`ve had a license in one of these states for three consecutive years, you may be able to take your license with you to Alabama. Check with the licensing board to be sure. The Alabama State Licensing Board for General Contractors defines a general contractor as follows: In addition to these two types of licenses, applicants can also apply for a specialized business license in a number of categories, such as concrete, carpentry, or masonry. A full breakdown of contractor classifications can be found on the Licensing Committee website. Not only that, but once you are allowed in Alabama, there is reciprocity for Arkansas, Mississippi, Louisiana, and Tennessee.

Let`s take a look at the steps you need to take to get a license. So how do you get your Alabama general contractor license? What steps are required? Where to start? We`re answering all these questions for you, so read on! Owning your own business as a general contractor in Alabama (also known as the prime contractor) brings many benefits. And getting your general contractor`s license as efficiently as possible is the best way to do it. This article explains the basic steps to get your license, what the future of construction looks like, and what you can earn. Congratulations! Once you have passed the required exams, the last thing you need to do is present your results on the board. After receiving your scores, your license certificate should arrive shortly after. After gathering all the necessary information, it`s time to fill out and send your application. A general contractor application form must be filed with the $300 application fee.

The fee for subcontractor requests is $150. Make sure the application is signed and notarized before filing. Incomplete applications will be automatically rejected. As for the schedule, contractors` licence applications must be sent and submitted at least 30 days before the quarterly meeting of the Board of Directors. Once the application has been reviewed and accepted, you are allowed to participate in the exams. General contractors must be authorized to work on residential projects over $10,000 or commercial projects over $50,000. If you have a bachelor`s degree in Alabama, you are automatically eligible to work in Arkansas, Louisiana, Mississippi, and Tennessee. In Alabama, the operational and legal audit must be passed with one of the following professional exams to become a licensed contractor: Building Construction (commercial) or Building Construction (under four floors).

This preparation for the exam course includes: practical quiz, mathematics and calculations, learning tips, license information and teacher support. The Tesing agency is PSI (1-800-733-9267). The exam consists of 50 questions with a time limit of 2 hours. You must pass a 70% exam to pass. @HomePrep is a national leader in online education. With more than $100,000, general contractors must be authorized to work on commercial or industrial work over $50,000 or residential work over $10,000. As for subcontractors, to do work for a general contractor over $50,000, they must also hold a license. .