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How To Earn Your License And Become A Concrete Contractor In Texas

You recently decided to take the next step in your career as a concrete contractor in the state of Texas. However, you’ll need a license before getting your business up and running. You are unsure about what’s required of you when going to apply for licensure. Trust us when we say that you’re not alone. There’s a lot of misinformation out there and we want to set the record straight.

We want to offer you a brief yet comprehensive guide to obtaining your contractor’s license. Here is what you need to know to get started:

Texas Builders Home Improvement

Specialists, And Handyman Services

If you live in Texas, the good news is that the state doesn’t require you to have a license if you plan on becoming a general contractor (this also applies to concrete specialists). Only specialty tradesmen are subject to licensure by the state. Most other states oversee and regulate the entire process, but Texas makes it much easier on general contractors.

In the past, a home improvement specialist had to apply for licensure through the state. However, now there is no longer a requirement to have a license. So, if your focus is concrete repair and installation, then you are in luck – you can still legally provide services without undergoing a state-regulated licensing process.

There is one caveat of becoming a concrete contractor. You don’t need a license at the state level. However, many municipalities and county agencies will require you to apply for a business license. Allow us to explain a little more.

Applying For

Local License and Permits

Texas is a little different from other states because your local county or municipal government may require you to have a license to operate. Most jurisdictions have different requirements, so you will need to do a little research before applying.

There are a lot of different cities within the state of Texas, so the process can get a little confusing. Here are some tips that can help you learn more about licensing in any particular city:

Visit the website of the Texas Municipal League
Scroll through the website and click on the city that you live in. You will then be redirected to the city’s government website.
Search for contractor’s license requirements

Each website is going to be different, so you may need to take the time to find the information you need. We always encourage any prospective contractor to cover their bases so that you can avoid any fines or penalties.

Insurance and Surety

Bond Requirements

Certain cities will require you to possess both surety bonds and insurance – this includes general liability and workers’ compensation. A lot of cities also have different minimums when it comes to your insurance coverage, but won’t require you to have surety bonds.

What is a surety bond? Let’s say for some reason you are not able to complete a project. This is technically a breach of contract. This means that your client may take legal action against you to receive proper compensation. A surety bond will cover you financially.

Business

License Registration

Any business, including concrete contractors, will need to register with the state of Texas. This means that you will need to determine the structure of your business, some examples including limited partnerships, LLCs, and corporations. This way you are fulfilling your tax obligations and earn permits

according to your business type. Small businesses (such as sole proprietorships) will need to register with the local county clerk’s office. Larger businesses (such as corporations) will need to register with the Texas Secretary of State’s office.

As we mentioned earlier, some cities will require you to have surety bonds before you begin to work on projects. The amount of the bond will vary according to the city in which you reside. We advise that you do a little research into local regulations before you begin taking on projects. You can always consult local bond companies to find a price and service that suit your business.

Tax

Identification Numbers

Businesses in Texas need to register for one or more tax-specific ID numbers for the purpose of tax withholdings, sales and use tax (seller’s permit), and unemployment insurance tax. We recommend that you contact the Texas Comptroller to learn more about your tax obligations.

Conclusion

We understand that there are plenty of hurdles you need to clear to obtain your license. However, having one will make your life a lot easier. A contractor’s license will allow you to grow your influence and take on profitable work-related projects. If you have any questions about the entire process, you can always contact your local county or municipal agency that’s responsible for reviewing and approving your contractor’s license.

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