1. Get Legal – It’s important to be aware that in the state of California it’s illegal for any contractor to bid on a job of $500 or more without a contractor license. If caught and convicted of operating without a contractor license the Contractors State License Board (CSLB) can give you stiff fines, and you could find yourself facing jail time or paying between $3,000 and $15,000 in penalties, or both.
2. Financial Independence – Having a contractors’ license gives you opportunity for financial independence. Be your own boss, and start making more money. You can work for yourself part-time or full-time, start your own business and increase your income. There’s no limit to the opportunities for success!
3. Payment for Work – Being a licensed contractor means guaranteed payment for your work through Mechanics Lien Rights. Contractors, laborers, subcontractors and material suppliers can file a “mechanics lien” on the property of a homeowner if they don’t get paid. The mechanics lien puts a “hold” on the property filed by an unpaid contractor, laborer, subcontractor, or material supplier and is recorded with the county recorder’s office. If unpaid, it allows a foreclosure action, forcing the sale of the property in lieu of compensation.
4. Business Loans – Getting a contractor’s license also strengthens your qualifications for small or large business loans. Business loans can give you more financial flexibility enabling you to take on larger construction projects, and increase business growth.
5. Discounts – You can get your raw materials and supplies such as lumber, plumbing, electrical wiring, and other such work materials at wholesale and discount prices.
6. Tax Breaks – Another consideration for getting your contractor license now instead of waiting for more time to pass by, is the tax incentives. You can write-off your trucks, home office, tools, gas, and other expenses when tax time comes around.
7. Protection – The Contractors State License Board (CSLB) routinely initiate sting operations to catch unlicensed contractors. Those caught receive citations with expensive fees and penalties that may include jail time. With a contractor license in hand, you can stop looking over your shoulder… you are free to bid on the jobs you want.
8. Job Security – Being a licensed contractor and working legally allows you to be more competitive in today’s business market. You are no longer limited to taking smaller jobs (under $500 without a license) and you will never need to worry about losing another job to a licensed contractor, because you are not licensed. You’ll also avoid the risks and penalties that come from not having a contractor’s license. In this sense, you have more job security than ever before as your pursue your career in the construction field.
9. Business Relationships – Having your contractor license gives you the freedom to bid on bigger and more profitable jobs for various types of commercial, residential, and government projects. Larger construction companies hire licensed contractors regularly for help with completing numerous projects in a timely manner. Networking with other contractors will help you to develop potential lucrative business relationships. Building relationships will help your reputation as a professional contractor to grow and boost your credibility with future clients.
10. Professional Credibility – Being a licensed contractor tells your customers and business associates, that you are a true professional – skilled, knowledgeable, responsible, and credible in the construction field.
You can find out more information about getting a California contractor’s license by giving us a call. We’ll give you all the latest information and you need to successfully pass your contractor license exam.