How to Get a Contractor License in Washington:

December 4, 2024

As a contractor in Washington, obtaining a contractor license is essential for legal compliance and building trust with clients. It not only allows you to work legally but also positions you to bid on larger projects and grow your business. However, the process involves more than filling out forms—it includes registering your business, securing a surety bond, and obtaining liability insurance to protect your livelihood.

Here’s an up-to-date guide to getting your contractor license in Washington, tailored to meet the latest requirements.

Steps to Get a Contractor License in Washington

1. Determine Your License Type

Washington offers two main contractor license classifications:

General Contractors: Can perform a variety of construction tasks and hire subcontractors across multiple trades.
Specialty Contractors: Focus on a specific trade (e.g., roofing, plumbing) and cannot hire subcontractors.

2. Register Your Business

Before applying for a contractor license, register your business with the Washington State Department of Revenue to obtain a Unified Business Identifier (UBI) number. Choose a business structure, such as:

Sole Proprietorship
Limited Liability Company (LLC)
Corporation

3. Secure a Surety Bond

The state requires contractors to have a surety bond to protect clients from financial losses due to damages or contract breaches. Bond requirements are:

General Contractors: $30,000 bond
Specialty Contractors: $15,000 bond

4. Obtain General Liability Insurance

Liability insurance is crucial for protecting your business from financial risks. The minimum coverage required in Washington includes:

$200,000 for public liability
$50,000 for property damage
Or a combined single limit of $250,000
However for construction trades the industry standard is $1 million “Per Occurrence”

Ensure your policy lists the Washington State Department of Labor & Industries (L&I) as a certificate holder. Your insurance agent should be able to supply this for you.

5. Complete the Contractor Registration Application

Fill out the Contractor Registration Application (F625-001-000).
Have your signature notarized.

6. Submit Your Application

Submit the following to your local L&I office:

Completed application
Original surety bond
Liability insurance certificate
Application fee of $132.60

Applications can be submitted in person or by mail.

7. Maintain Compliance

Once approved, your license is valid for one year. To maintain compliance:

Renew your registration annually
Keep your surety bond and insurance policies current
Update any business information changes with L&I

Note: Certain trades, such as electrical and plumbing, have additional licensing and certification requirements. Check with L&I for details.

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Ready to Get Licensed?
Getting your contractor license in Washington doesn’t have to be overwhelming. Follow these steps, secure the right insurance, and build a solid foundation for your contracting business.
Need liability insurance and state bonding or help with licensing?
Contact us today for expert advice and a free quote! Just click the link below for an online quote submission!
By staying compliant and protecting your business, you’ll set yourself up for long-term success in Washington’s competitive construction industry.

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