Depending on your trade, you might have to carry a license. We put together this Guide to Contractor Licensing in Texas to help you out. This guide will point you in the right direction toward running your business above-board. Not all contractors in Texas need to hold a license.
So then, who needs a contractor license in Texas? The state does not require folks in these lines of work to carry a license issued by the State.
Contractors that specialize in other trades need to hold a Texas contractor license. Plumbers, electricians, and HVAC technicians will need to meet specific requirements and pass a test issued by the state. There may also be local laws requiring additional paperwork from individual municipalities before you begin work.
Fire sprinkler installers, well drillers, mold remediation contractors, and companies installing elevators and escalators also need to carry a state license. Texas mechanics lien laws do not require a contractor to hold a license in order to file a lien. Even if the state requires you to hold a license, and you are unpaid for work you performed without a license, you still have the right to file a construction lien on the property.
Learn how to file a mechanics lien in Texas. Becoming a general contractor in Texas is extremely easy. However, you will have to register your business with the state or county, depending on your business structure. Going the route of the sole proprietorship is the easiest, but it also leaves unlimited personal liability for all the debts incurred through your business.
The following are some of the requirements for the typical trades requiring licensing. There are 11 different licenses, with several applying to specific types of businesses, such as maintenance or sign electrical work. Plumbing contractor licensing has its own set of requirements, with four types of licenses for which you can apply. Or, you could hold a technician certification for the 12 months prior to applying, in addition to having 36 months of practical experience. There are exemptions for some of the requirements to take the test.
They include earning a degree, diploma, or certificate from an accredited school, having a degree in mechanical engineering, being a licensed engineer, or having military training in HVAC. Class A licenses allow you to work on any size unit. Class B allows you to work on cooling systems 25 tons and under, as well as heating systems of 1.
To apply, you must be 18 years old and send in a completed application to the TDLR. General Contractors are given their licenses from their local government.
General Contractors In Texas, General contractors need to get a local license. License Bond In Texas, people who apply for a municipal license will need a license bond. You will need to pay some percent of your bond in advance.
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You may submit the documents to customer service by email. You must maintain commercial general liability insurance at all times while your license is active. Insurance must be obtained from an insurance provider authorized to sell liability insurance in Texas. If you have both Class A and Class B licenses, a single policy may be used to satisfy the insurance requirements of both, as long as the coverage meets the minimum requirements of a Class A license.
If you have ever been convicted of a felony or misdemeanor other than a minor traffic violation or pleaded guilty or no contest resulting in a deferred adjudication to any in-state, out-of-state or federal criminal offense, you must provide a completed Criminal History Questionnaire PDF along with your application materials. The department will conduct a criminal history background check on all persons who apply for a license. Criminal convictions are reviewed on a case-by-case basis. Licenses may be denied based on the nature of the conviction and how long prior to the application the conviction occurred.
Depending on your criminal history, a review can take from one to six weeks to complete. Individuals may request TDLR review their criminal background before actually applying for a license.
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