You must first be registered as a business entity: New Jersey only issues registrations to those who either own a sole proprietorship, partnership, corporation, LLC or LLP. This can be done through the NJ Treasury. Along with proof of insurance, corporate documents, and a completed Home Improvement Contractor application, you must send a $110.00 (non-refundable) check to the NJ Division of Consumer Affairs.
Although licensing is handled by cities/counties, there is a state registration program that all New Jersey General/Home Improvement Contractors must register with:
Each builder of an owner-occupied modular, factory-built, condominium, duplex, townhouse, single-family and new home residences must register with the New Home Warranty Program. A builder is known as an organization or individual within a business of constructing new homes.
The Contractor Registration Act has a requirement that each contractor who engages in a business of selling or making home improvements will need to register each year with the Division. Municipalities can’t issue construction permits to a home improvement contractor who is unregistered, which was effective January 1st, 2006.
You must still register with the Division, even if you have licensure through your local town.
In addition to registering for building new homes in New Jersey, you must also warrant each new home you build and provide warranty follow-up services. Registration is required to do business as a home repair contractor. Plumbers, electricians, and home improvement contractors are licensed in New Jersey.
As we mentioned earlier, the process for obtaining a general contractor license in New Jersey is different from the process to get an HVAC, electrical, plumbing, or alarm system license. Local governments (city, town, or county) will issue your New Jersey contractor license, but first, you must register with the Division of Consumer Affairs.
In order to get your HVAC, electrical, plumbing, or alarm system license, you will need to meet the requirements and take the New Jersey Business and Law exam. We will walk you step by step through both processes.
How To Register With The Division Of Consumer Affairs
The registration application process requires the contractor to provide several documents. We have them listed below to help streamline the process:
Your business name. The name you provide must match the name listed on all the company’s corporate documents and insurance certificate. You must also include any other names the business has operated under.
A Certificate of Formation OR trade name. The document you will need to provide depends on your type of business. If your business is registered outside the State of New Jersey, you will also need to include documentation from the state of origin and a New Jersey Certificate of Authority.
Mailing address, email, and phone number. If your mailing address is different from your business location (i.e. a PO box) you will need to make sure both are listed on the application. The address that corresponds to your business location must be clearly identified.
Federal Employee Identification Number. Commonly abbreviated as an EIN.
Full name and contact information. This is needed for the person filling out the application as well as each business partner (if the business is a partnership). If it is a corporation, you must provide this information for all shareholders that own 10 percent or more.
New Jersey-based agent. You will also need to provide the full contact information of the person you authorize to accept documents on your business’s behalf. This can be you, or anyone you appoint, as long as they are in New Jersey.
Social Security Number. The contractor (you) must provide you full social security number.
Proof of insurance. You must submit proof of liability insurance with a minimum of $500,000 coverage per occurrence.
Signed disclosures. The application must include signed disclosures for each business partner or above-mentioned shareholder about their civil record, professional licensure, and criminal history.
Signed certification. The last requirement will be a signed statement that all of the submitted information is true to the best of your knowledge and that you and all other involved parties are able to perform your work in an appropriate and safe manner.
It is important to note that the general contractors’ licenses in New Jersey are not transferable, even if the intended party meets all the requirements. They must obtain their license independently.
Once you have all of the components, you can submit the application along with the $110.00 fee. You will need to mail it to:
State of New Jersey – Division of Consumer Affairs
124 Halsey St.
Newark, NJ 07102
For further information regarding the application, check out the Division of Codes and Standards and Bureau of Homeowners Protection – New Home Warranty Program pages on their website at http://www.state.nj.us/dca.
If the builder receives approval, a registration card will be issued. That card will need to be shown to local construction officials when the construction has a permit for a new home.
How To Register With The Department Of Banking And Insurance (DOBI)
All contractors who want to offer financing options will also have to register and obtain a license from the New Jersey Department of Banking and Insurance (DOBI). This application process is very similar to the registration process with the Division of Consumer Affairs. It will require many of the same documents. The application can be found on the DOBI website.
How To Get An HVAC, Electrical, Plumbing, Or Alarm System License In NJ
In New Jersey, special licenses like HVAC and plumbing will require you to pass the New Jersey Business and Law exam. Don’t let that scare you away! With the right tools and preparation, the process will be easier than you think.
Step 1 – Meet the Basic Requirements
Before you can even register to take the exam, you must:
- Be at least 21 (or 18 for alarm system license)
- Have a high school diploma or GED
- 4 years of work experience as an Apprentice, and 1 year as a Journeyman
OR
- A bachelor’s degree and one year of board-approved work experience. Note: different licenses will require different bachelor’s degrees.
Step 2 – Complete the Application
Each of the licenses requires you to apply to take their exam. Most require a $100 application fee and are offered multiple times during the year. It is important to note that some exams have a waiting period (usually 6 months) between tests in the event that you need to retest.
Step 3 – Take the Exam
Each license has a slightly different exam and continuing education requirements, but don’t worry, we are here to help!
-HVAC. You will need to take 2 exams, the HVAC Trade, and the Business and Law exams
-Plumbing. Contractors will need to take 3 exams, the Trade, Business and Law, and Practical exam
-Electrical. You will need to take the same 3 exams as plumbing contractors, the Trade, Business and Law, and Practical exams
-Alarm systems. You will need to take the proper exam for the specific type of alarm system you intend to work with
Step 4 – Get Bonded
Getting bonded is the last step in the licensing process. Most of the licenses we discussed require you to be bonded for at least $3,000.00. After it is complete and you have satisfactorily completed the application and required exams, you will be officially licensed!
License Maintenance
No matter what type of license you hold, you will need to make sure it is kept current and up to date. That usually means you will have to renew it every 1 to 3 years. Renewals can sometimes require continuing education requirements. This ensures that you are staying up to date on the latest practices and regulations of your field. Some renewals also require a renewal fee, which can range between $50 and $200.
It is important that you keep all the paperwork that comes with your initial license. It should contain all the information you need to stay ahead of the renewal process.
If you have decided to take this next step – or even if you are still thinking it over – contact us. We can tell you more about the process. We have test preparation courses and materials for every state, and flexible learning options to help fit your busy lifestyle.
All of our instructors have real-world experience in the same trades that they teach. Not only are they knowledgeable, but also they understand the challenges you will face.
So, what are you waiting for? Pick up the phone and call us today! Your future is waiting.
How to Register your Company in New Jersey
Register your New Jersey Business With:
New Jersey Division of Revenue
PO Box 308
Trenton, NJ 08625
Website
609-292-9292
In order to register for the New Home Warranty Program, you must send in an application for registration and a $200 registration fee, which is nonrefundable.
For further information regarding the application:
State of New Jersey – Dept. of Community Affairs
Division of Codes and Standards
Bureau of Homeowners Protection – New Home Warranty Program
Website: http://www.state.nj.us/dca
If the builder receives approval, a registration card will be issued. That card will need to be shown to local construction officials when the construction has a permit for a new home.
To become a Home Improvement Contractor:
Attach a $90 fee, which is non-refundable, to the division.
Have proof of insurance for commercial general liability.
Finish and send in the application, which is available at http://www.njconsumeraffairs.gov/HIC/
Send in to:
State of New Jersey
Division of Consumer Affairs
Regulated Business Section – Home Improvement Unit
Website: www.state.nj.us/njbgs
