In the contracting business, it pays to know the rules. For example, in some states you can offer small services without a license, but you cannot advertise those services if you do not have a license. Sounds like the ultimate case of what the state knows will not hurt you, and it is also just another example of how it is important to know the rules when it comes to your contractor’s license. Contractors are busy people, and sometimes it is difficult to track when your renewal is due. That is why you should do some research on what happens if you forget to renew, and what you can do to solve the problem.
Contractors have to remember that renewing their licenses is critical to their company’s success.
Keeping Track On Your Own
Each municipality that requires a contractor’s license of any sort to legally work in their jurisdiction (usually states but sometimes it can be counties or even cities) will send out a reminder of your renewal 60 to 90 days prior to the due date. Licenses vary in terms of how long they are valid, and you need to be aware of how long your license is valid in case you miss the notice in the mail.
There are plenty of Internet-related tools that can help to remind you on a regular basis that your renewal paperwork is due. You can set notifications to start popping up six months in advance and go every month, or set up some other reminder system. Remember that many contractor license renewals also require classroom work to be completed before the license will be renewed. It is your responsibility as a contractor to know what is required to renew your license and how to get the materials you need to keep your license valid.
Grace Periods
Most states have leeway when it comes to renewing your license on time. For example, the commonwealth of Massachusetts requires their contractor licenses to be renewed every two years. However, Massachusetts also has a one-year grace period that gives you plenty of time to submit your renewal if you forget. Many states offer this grace period, and you should check with your state’s licensing office to see what kind of grace period it offers for contractor licenses.
Late Fees
Almost every state has late fees for contractor’s licenses, and those fees can add up. Some states, such as Minnesota, have one-time late fees for late contractor renewals that are not as punishing as they could be. But other states hand out substantial fees, and even some fines, for contractors who do not renew their licenses on time. It is important to know what types of fees your state hits contractors with who are late with renewals to act as motivation to not miss those dates.
A focus on licensing can mean that your business can continue to serve your customers without interruption.
Something To Keep In Mind
Contractors in Maryland know that no matter when they purchased their contractor’s license, it must be renewed by April 30th of every year. So if a new contractor went through the trouble of getting their contractor license in Maryland on April 1st, they would have to do it all over again on April 30th to renew. This rule sounds odd, but it is actually the norm in many states around the country. Before you sign up for your contractor’s license, it is important to understand the renewal date requirements to avoid having to pay for two licenses in the same year.
If you start a course with PDH Contractors, then you will have all of the updated information about your licensing renewal requirements in your state. PDH Contractors also has all of the certified courses you need to take to renew your license, and plenty of up-to-date information on the construction industry for you to use to your advantage.