How to get a Alabama Contractors License?
The state of Alabama provides two types of Contractor License.For a contractor to work they must be Licensed to work on commercial work over $50,000 or Residential work over $10,000. As for a Subcontractor to perform any work for a Contractor over $50,000, they must be Licensed. Once you are Licensed in Alabama, there is reciprocity for Arkansas, Mississippi, Louisiana, and Tennessee.
Steps to Obtain a License in the State of Alabama
- Register your Business: Getting your Alabama contractor license is to set up a business entity. Anyone conducting business within Alabama is required to be registered with the Alabama Secretary of State.
- Insuranse Coverage: Every Subcontractor and Contractor is required to have General Liability Insurance coverage if you plan to have employees you would also need workers compensation, proof of both Insurances should be submitted along with the Application.
Gather the Required Documents
- This section is also solely for general contractors. The applicant must provide a financial statement, no less than one-year-old, prepared by a Certified Public Accountant. To be eligible for a contractor license.
- You will need to gather past projects you have worked on with information on the work performed. This will include the project's location the year it was completed, the owner or contractors name who hired you, and the contract amount.
- Subcontractors need to gather reference letters, while general contractor applications actually include forms filled out each application that requires three work experience. These should come from either a licensed general contractor, a registered architect, a registered professional engineer, or any other qualified person as determined by the Board.
- A general contractor application form should be submitted with the $300 application fee. The fee for subcontractor applications is $150. Be sure that the application is signed and notarized before filing. Any incomplete applications will automatically be rejected. As far as timing is concerned, contractor license applications need to be sent and filed at least 30 days before the quarterly Board meeting. Once the application is reviewed and accepted, you'll be allowed to sit for the exams.
Take and Pass Exams.
- Once a complete application has been submitted and reviewed, the applicant will register for the exams. All general contractors must pass the Alabama Business and Law exam and any exams related to the applied-for specialty classifications. The Business and Law exam you must get a 70% to pass. As for any trade exams, the length and passing score will vary depending on the classifications. If you passed the required exams, the last thing you'll need to do is submit your scores to the Board. After they've received your ratings, your license certificate should arrive shortly afterward.
Penalties for Unlicensed Work
- The state of Alabama takes unlicensed contract work quite seriously. Under Ala. Code §34-8-6, anyone who tries to impersonate, provide false information to the Board, or is working with a revoked or expired license will be found guilty of a Class A misdemeanor for each offense. This is punishable for up to a year in county jail and a $6,000 fine. Not only that, but you can also have your licensed suspended, revoked, or face administrative penalties.
