Your 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.
- If your business will be a partnership, you need to apply for registration at the Arizona Secretary of State.
- If your business will be a limited liability company (LLC) or corporation, you need to apply for registration at the Arizona Corporation Commission.
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.
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.
Would you like to know how much your bond might cost? Get a free quote by completing the form below!
Complete the Arizona Contractor License Application
Once you have fulfilled the requirements above, complete the relevant contractor license application form:
- Sole Proprietor License Application Forms RC-L-200A
- LLC License Application Forms RC-L-200B
- Corporation License Application Forms RC-L-200C
- Partnership License Application Forms RC-L-200D
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!
Latest posts by Victor J. Lance, President/Owner (see all)
- Your Arizona Contractor License Guide - July 6, 2020
- Your Quick Guide to Becoming a Licensed Contractor in New Jersey - July 5, 2020
- How To Become a Contractor: 2020 Survival Guide - June 17, 2020