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
- 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.
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 & 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.