Your Arizona Contractor License Guide

Published: Jul 6, 2020
Arizona contractor license guide


To perform any type of work as a contractor in the state of Arizona, you must apply for a license from the Arizona Registrar of Contractors (AZ ROC). The ROC issues
licenses in the following categories:

  • Commercial engineering contracting
  • General commercial contracting
  • Residential contracting
  • Specialty residential contracting
  • General dual engineering contracting
  • General dual license contracting
  • Specialty dual license contracting
  • Specialty commercial contracting

Each of these categories includes different Arizona contractor license classifications and trades. Each classification allows for a certain type of work to be performed. The licensing process for all types of contractors in Arizona is the same.

For a detailed overview of how to get your Arizona contractor licensee, keep reading!

The Arizona Contractor License Requirements

To obtain your contractor license in Arizona, you need to complete a set of business and licensing requirements. These are as follows:

Business Entity Registration

Before you apply for your license from the ROC, you need to form a legal entity in the state.

Sole proprietorships must only register a trade name with the Secretary of State.

Employer Identification Number (EIN)

Applicants for a contractor license in Arizona must also apply for an EIN from the Internal Revenue Service.

Identify a Qualifying Party That Meets Experience and Examination Requirements

Each contractor must identify a qualifying party for their license.

The qualifying party can be a person who is part of the leadership of the business entity or an employee in the business.

To be approved as a qualifying party, a person must meet the license classification requirements. These include minimum years of experience, as well as successfully passing an Arizona contractor license trade exam by PSI.

You must pay a fee of $66 for each examination.

Submit a Background Check

The applicant(s) and the qualifying party (unless this is the same person) must pass a criminal background check.

Provide a Surety Bond and Insurance

Along with the requirements above, applicants for an Arizona contractor license must also get a surety bond and an insurance policy.

Worker’s Compensation Insurance

If you have employees, you will be required to secure Worker’s compensation coverage for them.

Surety Bond

All applicants are required to obtain an Arizona contractor license bond as part of their application.

The amount of your bond is determined on the basis of the classification(s) which you are applying for. Arizona contractor license bond amounts vary from $5,000 to as much as $100,000.

To get bonded, you need to pay a surety bond premium. This premium is equal to a small part of the total amount of your bond. The exact rate at which you can get bonded depends on your credit score and your overall financial status. The higher your score and the better your financials – the cheaper it will be to get bonded.

Applicants with good financials can expect to be offered a rate between 0.75% and 5% of the total bond amount.

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Complete the Arizona Contractor License Application

Once you have fulfilled the requirements above, complete the relevant contractor license application form:

You may also need to complete other forms, such as a prior license disclosure form or a felony disclosure form. Download the required forms and attach them to your application packet.

After completing your application, mail it to:

Registrar of Contractors

P.O. Box 6748

Phoenix, AZ 85005-6748

Alternatively, you can also complete and submit your application online through the Arizona ROC Online Services Portal.

License and Application Fees

When you submit your application, you must also pay several fees. These include a license, application, and recovery fund fee. Depending on your license classification, your fee will be as follows:

  • $780 for General Commercial
  • $580 for Specialty Commercial
  • $870 for General Residential
  • $720 for Specialty Residential
  • $1,050 for General Dual
  • $850 for Specialty Dual

License Renewal and Expiration

Arizona contractor licenses are issued for two years. They must be renewed prior to their expiration.

To renew your license, you need to submit a renewal application, a contractor license bond, and pay the required renewal fees. After the ROC reviews your renewal application, you will receive your renewal license.

Do you have any questions about getting your Arizona contractor license and bond? Call us at 877.514.5146 to speak to one of our bond experts!

 

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Victor Lance is the founder and president of Lance Surety Bond Associates, Inc. He began his career as an officer in the U.S. Marine Corps, serving two combat tours. As president of Lance Surety, he now focuses on educating and assisting small businesses throughout the country with various license and bond requirements. Victor graduated from Villanova University with a degree in Business Administration and holds a Masters in Business Administration (MBA) from the University of Michigan's Ross School of Business.