Contractor Financial Statements

If you’re a contractor in Tennessee, you likely know there are multiple steps associated with obtaining a Tennessee contractors license:

1. Pass the “Business and Law’’ exam

2. Prepare a Financial Statement

3. Have a letter of reference and proof of insurance

4. Register your contracting business with the Tennessee Secretary of State for tax identification numbers

5. Apply for the license by submitting all needed paperwork

Step two has created a lot of questions among our clients in Tennessee who are contractors. The Tennessee regulatory board requires an Audited or Reviewed financial statement. For an initial Tennessee contractors license, a contractor must provide a reviewed financial statement for monetary limits less than $3 million. For monetary limits greater than $3 million, an audited financial statement is required.

If your monetary limits do not exceed $3 million, Callison CPA can review your financial statements to help you comply with the requirements from the State of Tennessee. A review is an Assurance engagement that has a narrower scope than an audit. Inquiry and analytics are performed, but detailed testing of financial statement accounts does not occur. A review provides limited assurance that the financial statements are free from material misstatement.

Applying for or renewing your contractor’s license in Tennessee and need a TN contractors license financial statement? We can perform a review of your financial statements. Contact us for a free consultation.