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Obtaining a Contractor's License in Delaware
Are you looking to become a licensed contractor in the great state of Delaware? You've come to the right place. At the Contractor Training Center, we help hopeful contractors fill out and submit their applications, pass the proper exams, and complete everything needed to become a fully legal and licensed contractor, ready to operate in Delaware.
Unlike many states, Delaware makes it easy to register and apply for your license within the same registration packet. Before you do that, you'll need to get your Federal Employer Identification Number and additional tax information. You'll also need to register your business entity with the state.
Generally speaking, most contracting licenses that Delaware grants are either resident or non-resident licenses. However, you may be looking to go into a specialty trade field, such as plumbing, electric, HVAC, or water drilling. In such cases, additional exams or requirements may be necessary.
What You Can Expect From Us
We cover everything you need to know to obtain your Delaware contractor licensing process. First, we'll walk you through the upsides of being a licensed contractor in Delaware. Then, we'll break down the steps to apply for and receive the license. We have all the details regarding the specialty tests you may need to take and answer some of the most frequently asked questions.
As far as our Delaware services go, we're happy to offer license application consulting, fulfillment, and submission services. If this sounds like something you could use, don't hesitate to reach out to our team today!
The Benefits of Having a Contractor's License in Delaware
The advantages received from being a contractor with a license are countless. First of all, it helps to meet legal and regulatory requirements. But there are personal benefits as well. With a license, you gain more credibility and open doors to opportunities for higher pay.
Gives You Credibility
A state contractor's license can show a potential client that you have done your due diligence. For clients, the license makes them far more likely to trust you. Gaining this trust is a central component of establishing solid client relationships that will last for years to come. A state license makes an excellent first impression and gives you the chance to continue making a good impression with your work.
Gives You a Higher Earning Potential
Increased Earning Potential
Do you want to earn more in your role as a contractor? When you have a license that can back you up, you can increase your rates. By hiring someone licensed with the state, there's far less risk and much more security for the clients. Many consumers will only hire a licensed individual, so you are also increasing the number of jobs you are likely to get.
How to Get a Contractors License in Delaware?
Registering as a contractor in Delaware is a multi-step process, but it's not complicated. Below, we outline the steps you need to follow.
Step 1: Register Your Business
If your business will be operating within the state of Delaware, you must first register your business with the state. You'll need to do this by creating a valid business entity and tax identification number(s).
You'll need to register your business entity within the Division of Corporations. You can first check to see if the business name you would like to register is currently available with Delaware's online database.
Once you have formed your LLC, sole proprietorship, or corporation, you'll need to set up your tax information.
You must register for at least one tax-specific identification number (known as FEIN, or Federal Employer Identification Number). You'll need this number for licenses and permits, tax withholding, and unemployment insurance tax.
Step 2: Obtain Proof of Insurance
Delaware also requires proof of workers' compensation insurance coverage. This coverage can be from any of the following:
- A commercial insurance carrier
- A self-insured setup
- Via the state's Workers Compensation Insurance initiative
The details in regards to the state workers' compensation program are available on the Delaware Department of Labor site.
Step 3: Decide What Type of License Your Business Needs
Delaware, as a licensing state, defines the term "contractor" within Title 30, at the very beginning of Chapter 25. Within this state-wide accepted definition, the state offers two different licenses. The application for both licenses is similar. However, you must determine which license you need.
The two available options? Resident and Non-Resident Contractor's License.
- Resident Contractor License
You should apply for this license if you are an individual or a business planning to work with a primary location in Delaware.
- Non-Resident Contractor License
You should apply for this license if you do not regularly maintain a business in Delaware but plan to:
- Live out of state and complete an individual project
- Live out of state and contract some work
You will need to get this non-resident contractor license in addition to your license from out of state.
Note that you must apply for a surety bond equal to at least 6 percent of your contract total, as long as the contract is over $20,000.
Which Exam Should You Take?
Are you aiming to become a general contractor? Or do you need licensing as a subcontractor? Here are the definitions of both, so you can accurately determine what exams or applications you'll need:
- General Contractor: A general contractor is someone engaged in furnishing materials and labor. They may manage projects within construction, alteration, repairing, dismantling, or developing structures of any sort.
- Subcontractor: A subcontractor is someone who serves the same role, but works below a contractor or is a hire of the general contractor.
If you are only planning to fall into one of the above categories, there's good news: you don't need to pass any exam. As long as you complete the full Combined Registration Application, you will be fully licensed to work in Delaware.
If you have a specialty, the terms are different. Perhaps you are planning a plumbing business or desire to become an electrician. If you are looking into Water, HVACR, Electrical, or Plumbing as a specialty service of your company, you'll need to take additional exams.
Within the state of Delaware's Division of Professional Regulation website, you can find all of the information on the individual exam requirements.
Otherwise, you just need to fulfill the entire Delaware Contractor License Application, which we can do for you.
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Step 4: Apply for the License
You've come this far, but maybe you're confused about the comprehensive contractor license application? You're not alone. Many people struggle to make sense of all the different stipulations and licenses required to operate legally.
That's where the Contractor Training Center can help. With our Contractor License Application Fulfillment Service, we can help you fill out all of your forms. We'll help you compile all the necessary documents and correctly submit them to the state licensing office.
Included in this service is one consulting session. During this time, we'll go over everything with you to first ensure you're applying for the correct licenses. We will then collaborate to gather the right forms and fill in every box on the application correctly. Finally, we will review everything before submitting the finished product.
Should your application get rejected, we won't go anywhere. We'll continue to consult with you and determine whether an appeal or new application is appropriate.
Some people will apply and then reapply, and reapply again. Don't waste your time or money – let the Contractor Training Center guide you and take a load off of the application process. We will help you quickly, efficiently, and accurately.
Step 5: Take the Exam
If you've come this far, you should have a good idea of whether you need to take exams for your line of work.
Professions that need the exam include anyone looking to specialize in HVAC, Electric, Plumbing, or Water.
Exam Times and Date
HVAC: Heating Ventilation Air Conditioning and Refrigeration (HVACR) specialty exams take place on the first Saturday of the month during January, February, April, May, July, September, November, and December. The times are not available on Delaware's Division of Professional Regulation website.
Electrician: Exams for the Electric Examiner's license take place on the same days as the HVAC exams. They are available on the first Saturday of the month during January, February, April, May, July, September, November, and December. The testing service provider Prometric hosts the exams.
Plumber: The Plumbing License exam is available during most months of the year, on the last Saturday of each month. Applicants can take the exam in January, February, April, May, July, September, November, December.
Water Driller: There is no exam for water drillers. However, obtaining a water driller state license does have its own unique set of requirements. These requirements are available online in the state's regulations specialty trades. This category includes water well technicians, well drillers, and pump installers. Note that these regulations cover more than just the water driller license.
Preparing for the Contractors Exam
Unlike most states, there is no exam required to receive your state contractor's license. On the other hand, Delaware does require exams for sub-categories within the overarching umbrella of contractors. Those who are seeking to become a licensed electrician, plumber, HVAC technician, or water driller must follow the individual instructions to qualify for those licenses.
Requirements for each specialty trade license vary. It's essential to pay close attention to the area of specialty into which you fall. That way, you can fully understand the requirements to operate legally.
FREQUENTLY ASKED QUESTIONS
Currently, there are no additional requirements to receive your Delaware Contractor's License. All you need to do is apply for the license and get approved. No experience or education is necessary.
No, Delaware does not require a contractor to continue their education in the industry to maintain their license. All they need is for you to maintain and renew the license and pay an annual renewal fee of $75. All licenses expire on the last day of the year, so you must submit renewals before that time.
No, unfortunately, Delaware does not accept a NASCLA Accredited Commercial Contractor License. Only Delaware's own Contractor's License is applicable.
If you have a Delaware Contractor's license, it is only applicable within Delaware. It does not have reciprocity with other states. Additionally, Delaware does not accept any licenses from other states. Those looking to work in Delaware that have out-of-state licenses will need to apply for a non-residential license.
To register your business (a step that you must do before applying for the license), you must visit the Delaware Secretary of State or contact them by mail.
You can send mail to PO Box 898 Dover, DE 19901
You can reach the office by phone at (302) 739 - 3073
You can visit their website here.
There will be corporate forms and certificates and tax forms that you will need to fill out to register your business correctly in Delaware. Corporate forms and tax forms are available online.
You can use the Delaware Entity Search tool online to check and see if the name you would like to register for your business is currently available.