How to Apply for a Contractor’s License in Tennessee
Obtaining a contractor’s license in Tennessee is a structured process governed by the Tennessee Department of Commerce & Insurance. Here’s a comprehensive guide to help you navigate the application procedure effectively.
Step 1: Understanding the Requirements
Before you start your application, familiarize yourself with the essential requirements:
Exams:
Tennessee Business and Law Exam: This is mandatory for all applicants.
Trade Exam: Required depending on the classification of your intended work. Some trade exams might require pre-approval, especially for plumbing.
Financial Statements:
Review: Necessary for license limits up to $3,000,000.
Audit: Required for license limits exceeding $3,000,000.
Ensure your financial statement is prepared by a Certified Public Accountant.
References:
You must provide a reference form completed by a past client, employer, or codes official. This form is part of the application packet.
Registration with TN Secretary of State:
Corporations and Limited Liability Companies (LLCs) must register with the Tennessee Secretary of State.
Insurance:
Proof of General Liability Insurance is required.
Workers’ Compensation insurance or a Workers’ Comp Exemption is necessary.
Application and Fee:
Complete the application form and attach all required documents, including exam scores, financial statements, references, and proof of insurance.
Submit the application online or mail it to the Board office.
Pay the application fee of $250.00.
Step 2: Preparing for the Exams
The Tennessee Business and Law Exam is a prerequisite for all contractors. You might also need to take a trade-specific exam, depending on your classification. Here are the steps:
Study the Exam Content:
The exams cover various topics, including business management, construction laws, and specific trade knowledge.
Schedule the Exam:
Ensure you are pre-approved if taking the plumbing exam or other trades requiring pre-approval.
Check if you are eligible for reciprocity agreements that might waive the trade exam if you are licensed in another state.
Pass the Exam:
Successfully passing the required exams is crucial for moving forward in the application process.
Step 3: Financial Statement Preparation
Your financial statement needs to be prepared meticulously. According to the State of Tennessee, license limits up to $3,000,000 require a financial statement review by a Certified Public Accountant. Your CPA will provide a financial statement you can submit with your application.
Step 4: Gathering References
Collect references to validate your experience and credibility. The State of Tennessee provides a reference form in your application packet. Obtain signatures from past clients, employers, or codes officials who can attest to your work.
Step 5: Register with the Tennessee Secretary of State
Corporations and LLCs need to be registered. Contact the Tennessee Secretary of State’s office or visit their website to complete the registration. This step is essential for legal recognition and your license application.
Step 6: Obtain Required Insurance
Insurance is a mandatory aspect of your application. You’ll need a general liability insurance policy that meets the State of Tennessee requirements, and you’ll need to secure Workers’ Compensation insurance or apply for an exemption if applicable.
Step 7: Completing and Submitting Your Tennessee Contractors Application
The final step is to compile all your documents and submit the application. Ensure all sections are completed accurately, and attach required documents, including exam scores, financial statements, reference forms, and proof of insurance. There is an application fee of $250, and your applications can be submitted online.
Applications are processed in the order they are received, with a goal of 30 days. However, incomplete applications or those with deficiencies may take longer. In cases of hardship, you may request an early review to expedite the approval process.
Follow the Process
Applying for a contractor’s license in Tennessee involves a series of well-defined steps. By understanding the requirements, preparing thoroughly for exams, gathering the necessary documentation, and ensuring compliance with all regulations, you can streamline the application process and secure your license efficiently.
For more detailed information and to access application forms, visit the Tennessee Department of Commerce & Insurance website. If you need assistance with your financial statements, we’re here to help. Contact us today for a free consultation.