| Frequently Asked Questions: Contractor Registration |  | |
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Q: When do I need to register as a contractor in Washington?
You must register if you do, or offer to do, or submit a bid to do any of the following types of work for someone else:
- Construct
- Remodel or alter
- Repair
- Add to or subtract from real property
- Improve, move, wreck or demolish.
This doesn’t just apply to construction projects; it also applies to related work, such as painting or floor coverings.
Q: Do I need to take any special
classes or tests before I register?
No coursework or tests are required to register as a general or specialty
contractor.
Q: Could I be penalized for contracting
without a contractor's registration?
Yes. Labor and Industries is required to levy a minimum penalty of $1,000
for a first offense, and the job you are working on could be shut down.
Q: Do I need a new registration if I change the name of my company?
Yes. You need to submit new bond and insurance documents reflecting the new business name and pay a registration fee.
Q: Can my spouse or child take
over my business and registration?
Your spouse may. If your child takes over the business, the business is
considered a new one and your child must apply for a new registration.
Q: What are the different types of business structures I can choose for my businesses?
- Sole (individual) proprietorship: You own the business yourself or with your spouse.
- General partnership: You own the business with two or more people (usually not a married couple).
- Corporation: This can be a limited liability company (LLC) or a corporation (Inc.). Call the WA Secretary of State 360-753-7115 or go www.secstate.wa.gov/corps for a detailed description.
Q: When and why would I need to
re-register?
Any time the structure of the business, the type of work performed or
ownership changes, a contractor is required to re-register with Labor
and Industries.
Q: When and how do I renew my registration?
Your registration expires when your insurance expires
or two years after you register or renew, whichever comes first.
You can renew your registration online (Go to Registering as a Contractor.) or by going to your local L&I field office to do it.
Q: Can I register to be a contractor on line?
You can pay your registration fee online, however, we cannot complete your registration until we
have on file a notarized copy of your
registration application, as well
as all of your business and
insurance paperwork. Most
contractors come to an L&I
office to register.
Q: My company is very small. Why
do I need the same bond amount as a large company?
The $12,000 bond amount applies to all general contractors and the $6,000
bond amount applies to all specialty contractors, regardless of the size
of the business. The type of work is the same.
Q: What happens if my bond or insurance expires or is canceled
by the company?
If this happens, your insurance and/or bond company will
notify L&I, and we will suspend your registration. When you
deliver your insurance documents and pay the reinstatement
fee to L&I, we will renew your registration.
Q: What’s an Assignment of Account and how long must I keep
money in it?
It’s an account you may set up with your
bank, which contains the same amount of
money as your required bond. You must
keep this dedicated money in the account
for at least four years, even if you’ve closed
your business.
