How to get an Arizona Contractor's License?

If you currently live in the state of Arizona and plan on doing any construction works that involve a contract to build, alter, repair, add to, subtract from, improve, move, wreck or demolish any building, highway, road, railroad, excavation or other structure, development or improvement, or to do any part of the work must be a licensed contractor. Requires you to have a contracting license to perform this work.

Requirments needed to become a Contractor

  1. Identify a Qualifying Party: A "Qualifying Party" is somebody regularly employed, with the necessary experience, knowledge, and skills. A Qualifying Party can be a sole proprietorship, one of the partners of a partnership, one of the members of a limited liability company, one of a corporation's officers, or an employee of the contracting business.
  2. Minimum Exam & Experience: the Qualifying Party must have four or more years of experience to be eligible for a license and must pass the Business Management Exam (BME) as well as the Trade Exam (unless eligible for a waiver)
  3. Acquisition of a Surety Bond: The bond's amount will depend on your license classification and approximated annual gross volume. It will be your responsibility to seek out an appropriate bonding company.
  4. Passing the PSI Exams:stated above, the Qualifying Party must pass the BME as well as the Trade Exam with a score of 70 percent of higher. The Qualifying Party can register at any time to take these exams through PSI's online portal
  5. Background Check: Both the Applicant and the Qualifying Party must complete a criminal background check
  6. Form a Legal Business Entity: Licenses at the state level are only issued to legal entities recognized by the Arizona Corporation Commission. This includes registered sole proprietorships, partnerships, limited liability companies, and corporations.
  7. Proof of License Bond: The applicant must file a Contractor's Bond in the appropriate amount. This amount varies depending on license type and completed gross volume. This can be a surety bond or a cash bond, and you may also provide a bond in the form of cash or a certificate of deposit from any bank which operates in Arizona
  8. Pay Applicable Fees: License fees cover two years. The amount is dependent on the license classification and can cost anywhere between $580.00 and $1,050.00
  9. Government-Issued ID: Both the Applicant and the Qualifying Party both will need to submit a copy of their government-issued ID.

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