The first thing to know is:
In Virginia, it’s THE LAW!
The requirement for contractors to be licensed is written into the Code of Virginia.
Learn more about who is required to have a Virginia Contractor’s License, here!
That being said, we thought it may help you guys to have a Step-By-Step Guide on How To Obtain your Virginia Contractor’s License.
How To Get Your Virginia Contractor’s License
- Create Your Business Entity
- Determine The Type of License Your Company Will Require
- Take The 8 Hour Pre-License
- Take The Class A/B Contractor Exam
- Complete Your Virginia Contractor’s License Application & Experience Verification Form
- Take Your Specialty Exam
Scroll Down For More Details!
STEP ONE : CREATE YOUR BUSINESS ENTITY
The first step in getting your Contractors License in Virginia is to create your business entity, name it, and register it. A Contractor’s License is issued to a BUSINESS, NOT A PERSON.
- Determine your business’s structure (LLC, Sole Proprietorship, etc.)
- Verify that your business will meet local zoning requirements
- Secure an EIN (Employer Identification Number) from the IRS
- Register with various state tax and regulatory authorities.
Before diving in, you need to consider the Class and the Classification of your license, and which will properly fit with your business.
The Class of your license dictates the maximum dollar amount of a single contract,
as well as the maximum revenue in 12 month period.
- Maximum value of a single contract: Under $10,000
- Maximum 12 month revenue: Under $150,000
- Maximum value of a single contract: Under $120,000
- Maximum 12 month revenue: Under $750,000
- Maximum value of a single contract: UNLIMITED
- Maximum 12 month revenue: UNLIMITED
This will dictate the type of work your company is allowed to do.
- There are over 30 different Classifications and Specialties. The description of each can be found in the Board for Contractor Regulations.
- Your company must have a Qualified Individual for EVERY Classification/Specialty on your license. The Qualified Individual must be able to prove his experience in that type of work as well as pass a technical exam for that Classification/Specialty.
- Doing any work outside of the Classification/Specialty on your license is a Prohibited Act as defined in the Board for Contractor Regulations and will be subject to disciplinary action by the Board which may include fines, suspension of license, or revocation of license.
STEP THREE : TAKE THE 8 HOUR PRE-LICENSE EDUCATION CLASS
This step is a requirement for all Virginia Contractor’s License Applicants, Class A, B, and/or C.
In AVAC’s 8 Hour Pre-License, we cover it all!
- We explore each of these topics in depth.
- We take you through your licensing process Step by Step.
- We guide you through the Contractor License Application and Experience Verification Form, line by line.
- We teach you the laws, regulations, codes and business practices that govern you as a contractor.
- We answer your questions specific to your business and situation
STEP FOUR : TAKE THE CLASS A/B EXAM PREP CLASS
If you are looking to obtain a Class A or Class B License, you are required to pass the State Contractor Business Exam. This Exam Prep Class prepares applicants to take and pass the exam. Class A and B Applicant MUST PASS this exam BEFORE SUBMITTING THEIR APPLICATION.
In AVAC’s A/B Exam Prep, we provide both books from which all exam questions are taken. The books are pre-highlighted and tabbed for you. During the class, we walk you through how to study your highlighted books, and we teach you our PROVEN METHOD for taking and passing the timed, open-book exam.
Gather references and complete the Experience Verification Form. A Separate form must be completed for each Classification/ Specialty on the license. Then, send your completed Contractor’s License Application to the DPOR.
Remember: We help you through both of these steps in the 8 Hour Pre-License Class.
STEP SIX : TAKE YOUR SPECIALTY EXAM PREP CLASS
Once you receive approval from DPOR, you are able to take your Specialty Exam(s).
You must pass the Specialty Exam for each Classification/Specialty on your license.
AVAC offers the following Specialty Exam Preps:
NOTE: You must receive pre-approval from the DPOR prior to registering for and taking the Specialty Exams.
This approval is based on the Experience Verification Form that is submitted to the DPOR with the Contractor License Application.
What to do AFTER you get your Contractor’s License
- Secure your Certificate of Occupancy from Zoning Departments
- Obtain the necessary Local Business Licenses
- Open your business banking accounts
- Establish your record keeping system
- Secure adequate insurance coverage
- Obey all federal, state, and local tax filing requirements
These are just a few of the steps to consider when forming your contractor business.
Different contractors will face different requirements and challenges specific to their own unique situation. During our Pre-License 8 Hour Class, we go over everything step-by-step with you to make you are fully prepared, and ready to begin in your business!