Thinking of starting your own home services business? What a great idea! Helping others have a modern, clean and tidy home can be a very rewarding business. However, before you hang up your "open" sign, there are some legal requirements you must meet.  

You'll need the right licenses and permits to meet the legal responsibilities of general contractors in the U.S. But don't worry, getting the right licenses for your business doesn't have to be complicated if you know what you need and how to apply for them.

Failure to do so can lead to many problems in the future, such as penalties, fines and even the closure of your company. That is why you should choose the best license for your particular case and avoid legal problems, you might even be prevented from growing your company!

In this article, we will explain the types of licenses that exist for home services in the United States and how to apply for them. 

By the way, if you are thinking of starting a painting business, get all the information on how to set up my painting company in the USA: step by step.

What is a commercial license for a small business and how to obtain one?

It is a permit issued by the local government in the United States that allows an individual or business to operate within its geographic jurisdiction. Note that a business license is different from a business registration, which is the process of registering the legal name of your business.

Obtaining a business license is a fundamental requirement to legally establish and operate a business in the United States. The process for obtaining a license may vary depending on the location and type of business. You must follow the steps below:

1. Determine the type and legal structure of your business. 

This will affect business license requirements and costs. You can consult the U.S. Small Business Administration for more information on the options available.

Research local, state and federal regulations that apply to your business.

Each level of government may have its own requirements and procedures for issuing a business license. You can use the SBA's license and permit finder to find the relevant information based on your location and activity.

3. Apply for and pay for the corresponding business license. 

Depending on the type of license, you can do it online, by mail or in person. The cost of a business license varies by jurisdiction and type of business, but generally ranges from $50 to $550. Some have a limited term and require periodic renewal.

4. Complies with inspection, if required 

In some cases, you may need to schedule an inspection to ensure that your business complies with applicable standards and regulations. Be sure to adequately prepare for the inspection and correct any problems identified.

5. Comply with all other legal requirements to operate your business. 

In addition to the business license, you may need other permits or certifications related to zoning, construction, environmental, health, safety or occupational issues. You must also comply with the tax, labor and accounting obligations that apply to your business.

Getting a business license is an important step in opening a small business in the United States. It allows you to operate legally and demonstrate your credibility with customers and suppliers. In addition, it helps you avoid fines, penalties or the closure of your business for non-compliance. 

Licenses and regulations for home improvement contractors in the U.S.

A home improvement contractor's license is a document that certifies that you meet the legal and professional requirements to perform remodeling, repair or maintenance work on residential properties. 

According to the New York State Office of Worker Protection (NYC), any person or business engaged as a home improvement contractor, whether performing construction, repair or remodeling work, must be licensed to perform this type of work.

The process for obtaining a contractor's license in the United States depends on the state, county and city where you will establish your business. However, some common steps you should follow are:

Research specific requirements 

These may include minimum age requirements, minimum education, minimum experience, written or practical examination, liability and workers' compensation insurance, bond or surety, commercial or tax registration, among others. 

Complete the application form 

Completely fill out the official application form provided by the appropriate regulatory agency. You must provide personal and professional information about your business. You must also pay a non-refundable application fee.

Submits the required documentation 

You must submit documents that support your application. These may include certificates or diplomas of education or training related to your activity; proof or references of previous work experience; certificates or policies.

Local and municipal licenses for contractors in the U.S.

Local and municipal licenses for contractors in the U.S. vary depending on the type of work to be performed, the size of the project, the location, and the contractor's level of experience. Some examples of licenses you may require are:

General contractor's license  

This is the most common and basic license needed to perform any type of construction, remodeling or repair work on a property. This license usually requires the contractor to have minimum training, liability insurance and a bond.

Contractor's business license 

This is the license required to perform work on commercial properties, such as offices, stores, restaurants, hotels, etc. This license usually requires the contractor to have previous experience in commercial projects and to comply with certain specific codes and standards.

Contractor's residential license

This is the license required to perform work on residential properties, such as houses, apartments, condominiums, etc. This license usually requires the contractor to have previous experience in residential projects and to comply with certain specific codes and standards. 

Specialized contractor's license   

It is required to perform specific jobs that require a higher level of technical knowledge, such as electrical, plumbing, heating, painting, etc. The contractor must pass an exam and meet certain continuing education requirements. The most common are:

1. General Engineering Contractors License: this license allows you to perform civil engineering related work, such as earthworks, demolition, foundations, metallic structures, etc.
2. General construction contractor's license: with this license you can perform work related to the construction or remodeling of residential or commercial buildings or structures, such as carpentry, flooring, roofing, electrical or sanitary installations, etc.
3. Specialty contractor's license: with this license you can perform specific jobs that require special skills or particular certifications, such as plumbing, electrical, gas, air conditioning, landscaping, painting, etc.

If you need to send quotes to your customers, here we show you how to send quotes to customers (based on case studies).

Licenses and permits for construction projects in the U.S.

These licenses and permits are intended to ensure that construction projects comply with the standards established by law. They serve to protect the rights and interests of those involved in the work. The most common are:

Commercial license   

This is the document that certifies that the contractor is qualified and authorized to perform construction work in a given area. A commercial license is usually required for electrical, plumbing, heating, air conditioning, gas, asbestos and lead work.

Construction permit 

This is the document that approves the start of new construction or renovation. To obtain it, a detailed site plan must be submitted to the Board of Permits and Inspections or the Building and Zoning Board, who will review it for compliance with the local building code. 

Zoning permit 

It is used to verify that the intended use of the property conforms to the zoning regulations of the area where it is located. It is usually required prior to applying for a building permit.

Environmental permit 

Certifies that the construction project will not adversely affect the environment or natural resources. This permit is usually required by state or federal environmental agencies.

Occupancy permit

It authorizes the use and occupation of the property once the work is completed. To obtain it, a final inspection must be passed to verify that the construction complies with all legal and technical requirements.

Do you have many doubts about this? Contact us.

Licenses and permits for electrical contractors in the U.S.

There are four main categories of electrician licenses in the United States and each state has its own requirements for obtaining the necessary licenses and permits to practice this profession. The categories of electrician licenses that exist are: 

Electrical technician 

This is the basic license to work under the supervision of a journeyman or electrical administrator. To obtain it, you must complete an apprenticeship program that combines theoretical training with practical work experience, which usually lasts between 4 and 5 years.

Electrical Officer 

It is required to work independently as a professional electrician. To obtain it, you must have an electrician technician license, a certain number of hours of work experience as an electrician technician and pass an exam that tests your knowledge.

Electrical Manager 

This is the license that allows you to supervise and direct electrical projects of greater complexity and scope. To obtain it, you must have a journeyman's license and pass another, more advanced state exam. You must also have more hours of work experience as an electrical journeyman.

Electrical contractor 

Indispensable to contract and manage electrical services for residential, commercial and industrial customers. To obtain it, you must have an electrical administrator's license and meet other legal and financial requirements, such as having liability insurance and a bond.

If your art is electricity, here is the complete guide to insuring an electric utility company in the USA. 

Licenses and certifications for plumbing contractors in the U.S.

There are different types of licenses and certifications for plumbing contractors in the United States, depending on the level of responsibility, the type of work and the state where you practice. Some of the most common are:

Apprentice license 

This is the first license you should get if you want to start your career as a plumber. It allows you to work under the supervision of a master plumber or plumbing contractor, learning the techniques and procedures of the trade. 

To acquire it, you must be at least 18 years old, have a high school diploma or equivalent, and complete an apprenticeship program approved by the state or a recognized organization.

Officer's license 

This is the second license you must achieve if you want to advance your career as a plumber. It allows you to work independently or under the supervision of a master plumber or plumbing contractor, performing more complex and varied work. 

To obtain it, you must be at least 21 years old, have a valid apprentice's license, and complete a specified number of hours of practical and theoretical work. You must also pass a written and practical examination on the knowledge and skills of the trade.

Master license

This is the last license you should get if you want to reach the highest level as a plumber. It allows you to work as a supervisor or manager of other plumbers, design and inspect plumbing systems, and apply for permits to perform work. 

To obtain it, you must be at least 25 years old, have a valid officer's license, and complete a certain number of hours worked as an officer.

Keep in mind that some states in the United States have more stringent requirements than others, such as Massachusetts, California and New York. Others, such as New Jersey, Florida and Texas, tend to have more streamlined processes and are considered more business friendly.

Insurance requirements for general contractors in the United States

If you are a general contractor performing construction projects in the United States, it is very important that you are aware of the U.S. general contractor insurance requirements that you must meet to protect your business and its reputation. 

Contractors general liability insurance is a policy that covers you in the event you cause damage or injury to others during or after the performance of your work. Many states and clients will require you to have this type of insurance before they will hire you or allow you to work.

What requirements must you meet to obtain general liability insurance for contractors? To obtain it you must provide the following information:

• Name and structure of the company.
• Type of work performed.
• Time in business. 
• Number of employees and payroll.
• Gross income of the company.
• Additional insureds. 
• Policy limits. 
• Signature.

How much does general liability insurance for contractors cost? The average cost of general contractors insurance in the U.S. is about $800 per year, but can range from $400 to $2,000 or more.

Conclusion

The licenses you need for your U.S. home services business depend on the type of service you offer, the state and city where you operate, and the specific requirements of each regulatory agency. 

Remember to be well informed about the necessary licenses before starting the business, to avoid fines, penalties or even the closure of the company. In addition, licenses can help improve your reputation and customer confidence, as well as help you gain access to tax and financial benefits.