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    Arizona Contractor License Center Review

    Last updated 1 year ago

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    • The people are very nice. The course covers everything you need to know. I passed the test the first time. I would recommend this to anyone who wants to pass.

      Roger Davis

    Your Contractor's License FAQs, Answered

    Last updated 1 year ago

    State rules and regulations can be daunting for individuals seeking to setup a contractor business in Arizona. To help you through this process, the Arizona Contractor License Center has compiled this list of answers to frequently asked questions about the licensing process.

    What Types of Business Require Contractor’s Licenses?

    If your business provides or agrees to provide any of the following services, you must hold a contractor’s license: building, modifying, fixing, demolishing, or excavating any type of building, road, railway, roadway, or other structure.

    What Are the First Steps to Take When Applying for a License?

    Before you fill out your applications, you will need to confirm your business name through the Arizona Registrar of Contractors (ARC). Because the ARC has very stringent standards, it is important to contact them first, then register your name with the Arizona Corporation Commission and the Secretary of State. Fill out the Name Availability Form, and the ARC will hold your desired business name for 90 days.

    What Are the Exam Requirements for Contractors?

    To obtain a contractor’s license from the state of Arizona, the qualifying party must earn a passing grade on business and trade examinations, which vary depending on the contractor’s specialty. Under certain circumstances, the ARC may grant a waiver to contractors currently holding a license, or those who have held an equivalent license in the past five years. Exam scores are valid up to two years from the testing date.

    What Are the Bond Requirements for Arizona Contractors?

    Contractors will not be issued a license without providing a surety bond from an insurance agent authorized by the Arizona Department of Insurance. In order to perform residential work, you must also provide a consumer protection bond. Alternatively, you may pay either bond in cash or a Certificate of Deposit from any bank in Arizona.

    The Arizona Contractor License Center can help you set up any type of company, prepare for the contractor’s exams, and obtain your license to do business. If you would like to start a contracting business, call us today at (888) 738-3175.

    How to Get Started Applying for Your Contractor's License

    Last updated 1 year ago

    In order to do business as a contractor, you must first register your desired business name with the Arizona Registrar of Contractors (ARC). This organization is responsible for licensing all contractors within the state, and its naming standards are quite strict. After the ARC has approved your business name, you must register it with the Arizona Corporation Commission and the Secretary of State. Keep in mind that name approval from the ARC does not necessarily guarantee approval from the other two state offices.

    Once your business name has been approved by all requisite state agencies, you must pass qualifying exams to obtain your contractor’s license. These include a business management examination for all parties named on the license, as well as trade-specific examinations to ensure that you can adequately provide the services your company intends to offer.

    For assistance with setting up your contracting company and passing the required exams, contact Arizona Contractor License Center. We help current and aspiring construction contractors obtain and maintain the licensing they need to conduct business in the state. To get started, call us today at (888) 738-3175. 

    What Every Contractor Should Know About Doing Taxes

    Last updated 1 year ago

    Under IRS regulations, most licensed contracting companies qualify as small businesses. This means that you will have to file taxes for your company and also take responsibility for your employee’s W-2 forms. The exact tax forms you fill our will vary depending on whether your contracting business is a sole proprietorship, a limited liability company, a subchapter S corporation, or another type of company, but the tax tips below apply to every small business.

    Keep Track of Your Expenses

    Every receipt, no matter how small it may seem at the time, is vital when tax season arrives. These days, most businesses use computer accounting programs to keep track of spending, which saves bookkeepers and accountants a great deal of time during tax season, as it is fairly simple to generate a list of expenses to enter on your tax forms.

    Check the Accuracy of Your Employee Information

    For each full time employee you must submit a W-2 form to the IRS, and issue that same form to your employees. Their full, legal names and social securities must be complete and accurate, or the IRS may charge your business a penalty fee.

    Know When to Issue 1099-Misc Forms

    Sometimes, you may need to hire the services of an independent contractor who is not an employee of your company. For each contractor to whom you pay more than $600, you must issue a 1099-Misc form for that contractor to submit to the IRS.

    Learn How to Employ Your Family

    Hiring a minor, even your own child, can save you money at tax time. Any fees you pay a minor, up to a total of $6000, are taxed at a lower rate. Also, if you hire your spouse, you can deduct his or her health insurance from your taxes.

    If you wish to set up a contracting business, or if you need assistance with the process of renewing your license, call Arizona Contractor License Center at (888) 738-3175. We assist business throughout the state, including the Tucson, Phoenix, and Flagstaff areas.

    What is the Definition of an Independent Contractor?

    Last updated 1 year ago

    In the construction industry, an independent contractor is a business that provides specific services to customers through a written contract. The terms of service, including the timeline and the costs, should be explicitly outlined in the agreement. Watch this video to learn the explicit, legal definition of an independent contractor.

    Whether the service provided is a kitchen remodel or a home addition, an independent contractor is responsible for guaranteeing the quality of materials and labor. In the State of Arizona, construction contractors must have a valid license to legally conduct business.  

    If you would like to start a construction business anywhere in Arizona, from Tucson to Phoenix to Flagstaff, Arizona Contractor License Center can help you set up your company and pass the requisite tests to obtain your license. We also provide renewal services for existing businesses. Call us at (888) 738-3175 to learn more about contractor licensing in the Grand Canyon State.

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