How to Get a Contractor’s License in Utah

Are you interested in getting your contractor’s license in Utah? Whether you’re a general contractor, handyman, or an electrician, this guide will walk you through every step of the process.

If you've tried to get your contractor's license in Utah before, you know it's an involved process. From the pre-license courses to the contractor's exam, there's a lot to figure out. Unlike other states, acquiring your contractor's license in Utah is a bit more complicated, so it's essential to know exactly what steps you need to take to get the license you need.

Don't stress; we've done all the research for you and put it into this helpful guide! That's right. Everything you need to know about getting your contractor's license in Utah is right here in this guide.

On that note, let's get started.

Who needs a contractor’s license in Utah?

Getting your contractor's license is especially important in Utah for many reasons. The leading reason is that it's a Class A misdemeanor to not have a current contractor's license. In other words, if you operate without a license, you'll be subject to fees and penalties. And no one wants that.

Another reason to get your contractor's license is that it's great for business. Clients want to work with contractors they can trust—and that is skilled enough to meet the state's licensure requirements.

The state of Utah defines a general contractor as, "qualified by education, training, experience, and knowledge to perform or superintend construction of structures for the support, shelter, and enclosure of persons, animals, chattels, or movable property of any kind or any [...] up to four units may perform the mechanical work and hire a licensed plumber or electrician as an employee."

So who needs a license? Utah Code 58-55-301 goes on to say, "A person engaged in the construction trades licensed under this chapter, as a contractor regulated under this chapter, as an alarm business or company, or as an alarm company agent, shall become licensed under this chapter before engaging in that trade or contracting activity in this state unless specifically exempted from licensure under Section 58-1-307 or 58-55-305.

Essentially, anyone who wants to do repairs, construction, alteration, or demolition of any kind of building will need a license.

The State of Utah recognizes 23 types of contractors, including:

• General engineering contractor
• General building contractor
• Residential and small commercial contractor
• Elevator contractor
• General plumbing contractor
• Residential plumbing contractor

For the full list of contractor types, refer to Utah Code 58-55-301 on the Utah State Legislature website.

What are the requirements to becoming a licensed contractor in Utah?

Before you can start applying for your contractor’s license, you need to verify that you meet all the requirements. Let's take a look at them in detail.

• Complete a 25-hour pre-license course: All applicants must complete a 25-hour pre-license course before applying. You can take the course either through the Associated General Contractors of Utah or the Utah Home Builders Association. Keep in mind, these are the only two approved course providers.
• General Liability Insurance: You must have proof of general liability insurance with at least $100,000 in coverage per incident and $300,000 in total coverage. The Department of Occupational and Professional Licensing (DOPL) must be listed as a certificate holder. Make sure you get a quote so you can be sure you're getting the best coverage for the best price.
• Register your business: No matter if you're a corporation, sole proprietor, LLP, LLC, or partnership, you must register your business with the Utah Division of Corporations. After you register, make sure you apply for your Employer Identification Number (EIN) through the IRS. However, if you're a sole proprietor, you have the option to use your social security number instead of an EIN. Either way is acceptable.
• Complete two years of construction work experience: The State of Utah requires that all applicants complete—and prove—two years or 4,000 hours of construction experience.

If you have employees, there are a few additional requirements to meet:

• Workers' Compensation: For the most part, all employers need to implement Workers' Compensation. For more details on the parameters, check out the Utah Insurance Department website.
• State withholding tax: All applicants with employees must register with the Utah Tax Commission. Questions about this process or why it's required? Check out the Utah State Tax Commission website.
• Unemployment registration: In the state of Utah, all employers must have unemployment insurance through the Utah Department of Workforce Services.

Other important details you need to know

In addition to the requirements, there are a few other components to the application process you need to know. Let's take a look at each in more detail.

Prepare for and schedule your contractor’s exam

To receive your license, you must meet the educational requirements as well as pass two exams—the UT B-100 General Building Contractor exam and the UTAH Construction Business and Law exam.

The UT B-100 General Building Contractor exam:

• 3 hours to take
• 70% minimum passing score
• 80 questions total
• $72.00 fee

The UTAH Construction Business and Law exam:

• 2 hours to take
• Open book format
• The exam is issued via computer
• $75.00 fee

Pay the corresponding application fees

The Utah contractor's license application is on the pricier side. Below is a breakdown of the fees required for every application:

• New application fee: $225.00 (includes one classification and one qualifier)
• Application fee for every additional classification: $175.00
• Application fee for every new, additional, or change in a qualifier: $50.00
• Unincorporated with an owner owning less than 8%: $20
• Business registration fee: $70.00 (non-refundable, through the State of Utah Department of Commerce

Complete the contractor’s license application

The Utah contractor’s application has quite a few components to it. You'll be asked to provide basic information like your legal business name, address, and phone number. You'll also have to provide information like a financial responsibility statement, affidavit of experience, proof of general liability insurance, and more.

To make the application process as smooth as possible, make sure you collect each required item before you go to apply. That way, you know you have all the necessary documents to submit a complete application.

If you have more questions about contractor licensing, the process, or the requirements, leave a comment below! We're happy to assist. Don't forget to request an insurance quote so you can be sure you're getting the right coverage at the right price.

* Monthly payment calculations (i) do not include initial premium down payment and (ii) may vary by state, insurance provider, and nature of your business. Averages based on January - December 2020 data of 10% of our total policies sold.