Costs Of Being A Contractor

jasper98

I am just wondering what the yearly average costs are of maintaining a contractors license. Including insurance, fees, etc. Can you all give me a basic idea of what I can expect. Thanks

curapa

I can tell you it will greatly vary depending on your specific location, and type of contractor you are. Costs are totally different for a builder than they are for a drywall, roofing or framing contractor.

I would say this is something you will have to research by making some calls to your state lic. board, insurance company and local govt..

K2

$175 per year to keep my license here. I'm on inactive status so no insurance.. Last year they started charging 20 bucks extra for a background check. I'm not sure what they do if the find a bad guy. Probably more bad guys at the building dept running the backgroud checker.

curapa

Don't forget about any local city and county lic. needed to operate inside of them.

BKFranks

$300 every two years for the state license. $120 a year for a bond. Liability is about $1300 a year. Then there are the local licenses.

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Ivinni

Isn't your liability based on sales figures?

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Mike Finley

Contractors licenses are running about $1100 a year, add in insurance and its well over $5000 a year and getting more each year.

WisePainter

Florida was murder, don't ask.

Here is around $35 a year.

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g-man

Your original hair color mysteriously turns gray.

WisePainter

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Mellison

Or goes missing.

AtlanticWBConst

As seen by the answers thus far, the costs are very relative to your state, and your location.
So, you are best to check the annual costs of a state issued license in your area. There may also be additional annual costs for other registrations connected with the license.

Lastly, get some insurance quotes from your current insurance provider regarding Liability Insurance. Additionally, you may need to have Workmans Comp as well (in your area).

Liability insurance can vary, in terms of the amount of coverage you need to carry. For instance: What size jobs do you plan on doing, are they commercial? industrial? On multi-unit properties, etc? = These places, or conditions, can greatly increase the costs of your annual liability insurance coverage. - Example: We had one very good contract (repeat work), that wanted specific wording in our liability coverage...it doubled our annual insurance premium.

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Meetre

like atlantic said, it will vary. in most states the license fee is tiered, the more work you do the more that lisense will cost you. then you insurance will vary, dependant on the number of employees, types of work you perform and or sub-contract. then workman's comp which is generally a % of pay to employees, depending on the type of work that they do. So, it will be different each year you are in business. Plus, at the end of each year, your insurance and worker's comp will audit you to find out if they are charging you enough to cover your liability.

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BKFranks

I'm just giving the guy an idea. I didn't even include workers comp. Depends on if he has employees or not.

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