How to Get an Arizona Contractors License

Does Arizona Require a Contractors License?

The state requires licensed contractors to handle jobs totaling over $1,000. And in the construction industry, that’s most of them. Without a license, you’re limited to smaller, lower-paying jobs.

Getting an Arizona contractors license also sets you up for success. A license will:

• Add a level of professionalism to your work, including the state’s stamp of approval.
• Tell customers you’re serious about what you do.
• Give you a competitive edge over other contractors.

A license also requires that you carry general liability and business insurance, such as workers compensation. These policies protect you, your company’s assets (like tools, equipment, and vehicles), and your employees in case something goes wrong.

Does getting a license sound like a no-brainer? We think so. Now, here’s how to do it.

How Do I Get an Arizona Contractors License?

Anyone can apply for a contractor’s license, whether you’re an individual working as a sole proprietor, or if you work in a partnership, limited liability company (LLC), or corporation.

But how do you know if you’re actually required to get a license?

Arizona is pretty clear on this front. You’re required to get a contractor license if:

• You’re working on any project that exceeds $1,000 - and that’s with labor and materials combined. So even a “small” project could require a license if you’re using materials that hit that $1,000 threshold.

• You’re working on any project where a permit or license is required. You will encounter this a lot, as Arizona is encountering a building boom thanks to an increasing population.

To summarize, if you don’t have a contractor’s license, you could be cutting yourself off from some pretty high-paying projects. Plus, without the license, you could be putting yourself at legal risk if a customer ever sues you over your work.

So let’s take a closer look at how to get your Arizona contractor license.

1. Download the application.

First, download the application online at roc.az.gov, or get a hard copy by calling 877-692-9762, or emailing [email protected]. If you prefer an in-person visit, stop by one of the Arizona Registrar of Contractors offices to get an application. Bonus: their onsite staff can walk you through the process there.

Phoenix Office 1700 W. Washington St. Suite 105 Phoenix, Arizona 85007-2812 Telephone: (602) 542-1525 Fax: (602) 542-1599

Tucson Office 400 W. Congress St., Ste. 212 Tucson, Arizona 85701-1353 Telephone: 1-877-692-9762 Fax: (602) 542-1599

Flagstaff Office (by appointment only) 2501 N 4th Street #22 Flagstaff, Arizona 86004-3701 Telephone: 1-877-692-9762

2. Take the licensing exam (if required).

As you gather your paperwork (which we'll talk about in a bit), sign up take the licensing exam. First, find out which exams are required in your business. Then, sign up for an exam online and find a testing center nearby.

3. Submit your application.

You’ve completed and signed the paperwork. Check! You’ve passed the test. Another check! Great job. It’s time to send in your application.

To send it in the mail:

Registrar of Contractors P.O. Box 6748 Phoenix, AZ 85005-6748

To deliver it in person:

1700 W. Washington Street Suite 105 Phoenix, AZ 85007-2812

4. Get business insurance.

As you navigate the licensing process, don’t forget to get business insurance, including general liability. A business insurance plan will help protect you, your employees, and your business if there’s an accident or loss of property.

Plus, it adds a level of professionalism that complements your brand-new state license.

Some Arizona contractor industries may be legally required to carry a minimum level of business insurance in order to get approved for a license. One of the most common requirements is around general liability insurance, which provides financial coverage in case your work causes an accident or damages property.

If you don't yet have general liability insurance, no worries - just check out our free quote comparison tool to find affordable policies from the nation's top insurance companies.

General Requirements for Licensure

1. A qualifying party.

First, you’ll need to identify your “qualifying party.” This is a person, and most likely you, who is over 18 and ready to apply for a license. Check out Arizona’s license classification requirements to make sure you have the years of experience required.

2. A background check.

Arizona requires a criminal background check for any person applying for a state license. Once you complete the background check, the Arizona Registrar of Contractors receives the results.

If you have a criminal record, it could affect your ability to secure a state license. Your best bet is to read the state’s policy on licensing background checks and call 877-692-9762 with questions.

3. Your exam results.

There is a test involved. You’ll need to pass the Arizona SRE Statutes and Rules Exam and your specific trade exam by at least 70% — and send in the results.

4. Paperwork for legal entity.

If you haven’t done so already, register your business in Arizona — whether you’re a sole proprietor (an individual working on your own), or you work in a partnership, limited liability company (LLC), or corporation. You can use eCorp, the state’s web-based application to file your business with the state. Need a business license? Follow the steps in our Arizona business license guide today!

5. A construction bond.

You’ll also need to send in proof of a license bond. This bond can be a surety bond or a cash bond. You can also provide your bond in cash or as a certificate of deposit from any Arizona bank.

The bond must be continuous, meaning it doesn’t have a termination date. The amount varies based on your license type and the estimated gross volume of work. You can learn more about how construction bonds work here.

6. Your license fees.

To get your state license, you also need to pay a fee. You can see what fees you'll be expected to pay based on the license you apply for.

7. Government-issued identification.

Gather your government-issued identification and make copies to send in. Your identification can be a valid driver’s license or a passport.

8. Application form and signatures.

Once you have all of your paperwork together, sign it and add any supporting documents that are needed. Here are a few documents you might need to add in:

• Prior license disclosure form (if you had a previous license)
• License cancellation form (if you have a license that you wish to cancel when you receive your new license)
• Felony disclosure form (if you were convicted of a felony)
• Unlicensed activity disclosure form (if you were convicted of unlicensed activity)
• Solar warranty (if you are applying for a solar license)

How Long Does It Take to Get a Contractors License in AZ?

According to the Arizona Registrar of Contractors, it takes about 20 days for the board to review and either approve or request more information from the contractor. If you do get a notification that your application needs additional info, it may take an additional 40 calendar days for your application to be processed.

How Much Does It Cost to Get a Contractors License in Arizona?

The fees for a contractors license will largely depend on the class you're applying for. Here's a quick overview of how much you can expect to pay for your Arizona contractors license:

• General Commercial: $780 ($200 application fee, $580 license fee)
• Specialty Commercial: $580 ($100 applicatiion fee, $480 license fee)
• General Residential: $870 ($80 application fee, $320 license fee, $370 recovery fund assessment)
• Specialty Residential: $720 ($80 application fee, $270 license fee, $370 recovery fund assessment)