What sparky hasn't thought of one day having his own license? Heck - what first year apprentice doesn't look to the day he 'goes solo?'
Well, with the retirement of my long-time business partner, that's exactly what I get to do these days. I suppose you could say I'm doing it under the most favorable of conditions: support of "the boss," established customers, and an established reputation.
I thought I'd start this thread as a 'reality check,' as well as a 'blog,' of the process as it develops. I'm sure many will find it enlightening - and some will surely have some old memories come back!
Feel free to comment - that's what makes ECN work
Anyway, here the process began with my submitting a 32 page application, together with a 5 page financial statement ... and paying a $300 application fee. Part of the application were five notarized statements as to the minimum five years' worth of journeyman level work. This paperwork was submitted on June 3rd.
After two weeks' of review, I was granted permission to take the tests. One on the trade, and one on contracting / business law. To begin with, I got to buy a book ($40) on Nevada law .... and dig out my 99 NEC.
Scheduling the tests was more of a challenge, and I wasn't able to take them until yesterday (July 10th). The test center expressed surprise that I was taking both at once, that I finished early, and that I managed to pass both. Another hurdle overcome.
Now I have to do four more things in order to get the contractors' license:
-1 Post a $2000 bond. I can either go to an insurance agency ($100/yr), or put up my own money ($200/yr processing fee in addition to the $2000);
-2 Pay the license fee ($600/ 2 yrs.);
-3 Pay for Workmans' comp, or sign the necessary waiver; and,
- 4 Pay $200/yr into the "residential recovery fund." (I thought only tract builders had to do that!)
Once these requirements are met, I will be issued a license number. Then I can do the "other" paperwork, for everyone else:
-1 Obtain an ID number from the IRS;
-2 Obtain a tax certificate from the State;
-3 Pay the State employment tax ($25/quarter/person);
-4 Register company name with the County; and,
-5 Get a city business license.
Only after all these steps are complied with can I open bank accounts, print up stationary, and actually start contracting for work.
Then of course, it will be time to make the first quarterly tax payments ...