Become an Arizona Licensed Contractor
Arizona state, like most other states, regulates all major residential and commercial construction. In Arizona, jobs that total over $1,000 must be done by a licensed contractor in the state. Applying to be a licensed contractor requires courses, an exam and payment for application. For many small businesses, this is an important and large expense that must be done in a timely manner before work can begin on a project. You may first want to solidify your company's business organization while you apply for the license, so that you are ready to work when the process is complete. This article will tell you how to become an Arizona licensed contractor.
Steps
- Go to azroc.gov or any Arizona Registrar of Contractors to obtain an Arizona Contractor's License Application Packet. Read all the instructions in the packet before beginning to fill out the application. You will need to fill it out by printing with black ink or with a typewriter.
- Take examination preparatory classes, if you do not believe you are qualified to take the exam. You can find these courses at examprep.org/arizona_contractors_license. People who live outside of Arizona but want to take the Arizona test may choose to take these classes in order to better understand the requirements in another state.
- These classes are specialized, just as a contractor's license is. For example, you are required to take different tests if you want to be a residential remodeling contractor than if you want to be a large commercial contractor or a plumbing contractor.
- Complete the business management and trade exams before you complete your application. You can call 1-800-733-9267 or visit azroc.gov/l_Exam.html to find out what exams are required for your contractor application. They are specific to the type of contractor you would like to become.
- Go to candidate.psiexams.com to complete your business management or trade exams. You will be asked to choose a state and the "Arizona Contractor" exam from the drop-down menu. Then you will need to find your exam listed among the many contractors examinations.
- Pay the $56 fee to take the test and schedule a time to take it. Most of these exams are open book exams and can be taken on the computer. In the case that the exam is conducted on-site, you can also schedule it in this section.
- You must create an account in order to take the test online. This will include your name, address, personal information and possibly the name of your business. You may also do a telephone registration at 1-800-733-926, or you may fill out the examination test form and send it into the address listed on the form in your packet.
- If you take an exam on site in either the Phoenix, Tucson, Flagstaff or Yuma testing center, you will required to bring 2 forms of identification. You will also have to follow strict test-taking protocol.
- Apply and obtain a license bond. The bond protects the company and clients in case of bankruptcy or malpractice. The application lists how large the bond must be for your type of contracting and whether you would like to provide a cash bond, a certificate of deposit or a surety bond.
- Apply to join the Contractor's Recovery Fund or post a bond of $200,000, if you plan to do residential work. The Contractor's Recovery Fund application fee is $450, or you can provide a larger bond. Go to azroc.gov/Recovery/answers.html for more information about the Recovery Fund.
- Apply for your Arizona Transaction Privilege Tax Number. You may obtain a number in either Phoenix or Tucson at the Arizona Department of Revenue offices. Phone numbers and addresses are listed in the application packet.
- Apply for insurance for your company. You will need to attach the insurance information to the application packet. This may be both business insurance and worker's compensation insurance.
- Fill out the application in black ink or typewriter. This will include the type of contractor's license you are seeking, the business organization, such as a sole proprietorship, partnership or corporation, the experience record and all business information, employees and financial details.
- Attach your bond information, insurance information, exam information and any other essential information to the application.
- Submit the Arizona contractor's application with all the required forms of identification. Make sure you sign and date all necessary areas of the application. Incomplete applications will be returned to you, and they may require more processing fees.
- Wait for the Arizona Registrar of Contractors to process your license. You will receive a license number if you have done all the required steps correctly. List your contractor's license number on all business forms, business cards and company information.
Tips
- Depending upon the type of exam you take, it may cost more than $56 to take the exam you need. You may also be able to pay for more than 1 exam.
- You can seek the assistance of a small business advocate in completing your Arizona Contractor License. Email rocsba@azroc.gov for more information.
- You may also want to fill out forms that allow reciprocity agreements in Nevada, Utah and California. These should come with your application packet, but if you did not receive them, you can find them at azroc.gov/l_Forms.html.
Warnings
- Beware that if you choose to change the name or business organization of your company, you will be required to reapply for a new contractor license number.
Things You'll Need
- Black pen
- Typewriter
- Contractor's License Application Packet
- Contract exam prep courses (optional)
- Test fee
- Business management test
- Trade test
- Arizona Contractor exam account
- Bond
- Arizona Transaction Privilege Tax Number
- Contractor's Recovery Fund or $200,000 bond
- Business insurance
- Forms of identification
- Experience record
- Business documents featuring license number
