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Licensing Requirements: How To Become A Concrete Contractor In South Carolina
You recently decided to embark on your career as a concrete contractor, but you will need to undergo the licensing process. The South Carolina Department of Labor, Licensing and Regulations reviews the applications and approves licensure for contractors throughout the state. You will need to meet certain requirements before you can begin to apply. This includes having a business license as well as general liability and workers’ compensation insurance.
The entire process may seem a little daunting, but we want to help make things easier. Here is a brief yet comprehensive guide to obtaining your contractor’s license:
Licensing
Requirements
The South Carolina legislature says that general construction involves “the installation, replacement, or repair of a building, structure, highway, sewer, grading, asphalt or concrete paving, or improvement of any kind to real property.”
Concrete contracting services fall under this category, which means that you will need to apply for your license through the state. You will need to submit all the relevant information and documentation required by South Carolina and undergo two licensing exams.
Licensing
Categories
South Carolina offers three primary categories for general contracting. Each category varies in terms of the work you plan on performing. Here is how South Carolina categorizes each license:
General and Mechanical Contractor – This applies to
anyone who plans to bid on commercial, general, or mechanical work exceeding $5000.
Residential Home Builder and Manufactured Housing Contractor – This particular license allows you to perform the construction, or supervision of construction, repair, improvement of one, two, or multi-family residences.
Residential Specialty Contractor – This one applies to specialty trades, such as plumbing, electrician, and HVAC.
Contractor’s
Exams
Before filling out and submitting your application, you will need to undergo two exams – your Business and Law exam as well as your trade exam (if applicable). You can access South Carolina’s online Candidate Information Bulletin for more information on scheduling, exam sites, and fees.
Completing and Submitting
Your Application
In addition to passing your exams, South Carolina has several requirements that you will need to meet when completing your application. These requirements will vary a little bit according to the category of the license. However, each application is similar in terms of what the state is asking from you:
- The test score on your Business and Law exam (and trade exam if applicable)
- Financial statements or a background check to verify your credit score
- Detailed references and work history showing that you have experience as a concrete contractor
- Proof of that you have a business license
Proof of general liability and workers’ compensation insurance - Surety bonds (which protect you if there is ever a breach of contract)
- Proof that you registered your business with the South Carolina Secretary of State’s office depending on your business structure (examples include corporations, LLCs, and partnerships)
- A clean criminal record (this doesn’t mean that you will be automatically disqualified from receiving your license)
- General information such as your address, phone number, the name of your business, etc.
Business
Registration And Tax Obligations
Depending on your business structure, you will need to register with the South Carolina Secretary of State’s office. Independent contractors and sole proprietorships, however, won’t need to do this. That being said, no matter your business structure, you will need to present your local county or municipal regulators with a certificate of insurance if you want to bid on projects.
You will also likely need to obtain a business license through your local town or municipality. This includes Beaufort, Charleston, Dorchester, Horry, Jasper, Marion, Richland, and Sumter. If you are unsure whether you need to register your business locally, then we recommend that you contact the South Carolina Department of Commerce.
The state also requires you to register for tax identification numbers. This way you can uphold state and federal tax obligations, such as withholding, sales and use tax (seller’s permit), and unemployment insurance tax.
Conclusion
We know all about the frustrations of obtaining a license. However, we can assure you having one will benefit you immensely. Licensure allows you to grow your business and take on higher-paying jobs. It also represents a stamp of approval from the state of South Carolina. Once you receive your license, you can immediately begin advertising and providing services as a concrete contractor.
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