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If you're considering condign a contractor in the state of Texas, you're probably trying to discern which rules and regulations are applicable to your line of piece of work. There can be specific insurance, bonds, and other requirements. Depending on your merchandise, you lot might have to carry a license. If the state does require a license and y'all don't have one, you could find yourself in some hot water. Nosotros put together this Guide to Contractor Licensing in Texas to help you out.

This guide will indicate yous in the right direction toward running your business organisation above-board. We'll go over the application process, the rules, and the requirements (or lack thereof, when information technology applies) to getting your license. The goal is to ensure you're able to build your business organization without the stress of wondering if you're in compliance with local laws and regulations.

For data on licensing in other states, check out The Ultimate Guide to Contractors License Requirements in Every State.

Do you demand a contractor license in Texas?

Not all contractors in Texas demand to agree a license. Whether or not you need a license depends on your trade and the surface area in which you're working. Then then, who needs a contractor license in Texas?

Builders, handymen, and home comeback specialists

If you're a handyman, full general contractor, or builder, you don't need a contractor license in Texas. The state does not require folks in these lines of piece of work to conduct a license issued by the Land. But you might accept some additional paperwork to sort through depending on where you're working — we'll cover that below.

Plumbers, electricians, and HVAC contractors

Contractors that specialize in other trades demand to concur a Texas contractor license. Plumbers, electricians, and HVAC technicians will need to run into specific requirements and pass a test issued past the state. There may too exist local laws requiring additional paperwork from individual municipalities earlier you brainstorm work.

Fire sprinkler installers, well drillers, mold remediation contractors, and companies installing elevators and escalators also need to comport a land license.

Keep in mind that even if y'all don't consider yourself an electrician, plumber, or HVAC tech, if yous offer those services, you'll need to deport a license to perform those trades.

Texas contractor licensing & mechanics lien rights

Texas mechanics lien laws do not require a contractor to concur a license in gild to file a lien. Fifty-fifty if the land requires y'all to hold a license, and you are unpaid for work you performed without a license, you still have the right to file a construction lien on the property.

And so, if you perform electrical work without a license and the possessor doesn't pay you, you have the right to a mechanics lien — despite the fact that the land says y'all need i to perform that work. That said, it's never advisable to perform work for which the state requires a license without holding that license, and there can be penalties for doing so.

Didn't go paid? Acquire how to file a mechanics lien in Texas

How to get a contractors license in Texas

Becoming a full general contractor in Texas is extremely easy. Because the country doesn't crave a license, in that location are no age, experience, or educational requirements.

Notwithstanding, yous volition have to register your business organization with the land or canton, depending on your business construction. You'll have to decide whether you lot want to register equally an LLC, partnership, corporation, or sole proprietor. Going the road of the sole proprietorship is the easiest, merely it also leaves unlimited personal liability for all the debts incurred through your business.

If yous're non a full general contractor, handyman, or home improvement specialist, yous volition demand a license to conduct concern in Texas. The following are some of the requirements for the typical trades requiring licensing.

Electrical contractor licensing

If y'all're interested in becoming an electrician in Texas, you'll have to apply through the Texas Department of Licensing and Regulation (TDLR). There are 11 different licenses, with several applying to specific types of businesses, such as maintenance or sign electrical work. For the sake of this article, nosotros'll focus on the Master Electrician'south license.

To apply for the Primary Electrician'south license, in that location are sure requirements and hoops to spring through. For one, you must have 12,000 hours of on-the-job training, which you'll receive as an amateur and journeyman working under a Master Electrician. You must also accept held the journeyman's license for two years.

One time you run into the requirements, y'all'll have to send the Master Electrician License Application Form, with a $45 check, via mail to the Texas Department of Licensing and Regulation. Once the TDLR receives and approves your registration, they'll contact y'all to take the examination.

Once you pass the test, you'll have to renew your license annually.

Plumbing contractor licensing

Plumbing contractor licensing has its own set of requirements, with iv types of licenses for which you lot tin can employ. Licensing is a matter of the Texas State Board of Plumbing Examiners. To be an independent plumbing contractor, you'll need a Responsible Master Plumber's (RMP) license.

To utilize for an RMP license, y'all'll need to already hold a Principal Plumber license in Texas. You'll also have to consummate a 24-hr training course with the TSBPE and provide proof of $300,000 of commercial liability insurance.

Once you ship in your completed awarding, a Certificate of Insurance, and a $345 licensing fee, the TBSPE volition review it and approve or deny your license. If approved, y'all'll have to renew your license to the tune of $420 each yr.

Air conditioning and refrigeration contractor licensing

Similar electrical licensing, HVAC and refrigeration licenses are a thing of the TDLR. The TDLR offers a technician license or certificate, as well as a contractor'south license, which you lot'll need to run your own HVAC business independently.

To qualify for a contractor'southward license, you'll have to have 48 hours of applied experience n air conditioning and refrigeration related-work nether the supervision of a licensed contractor. Or, yous could hold a technician certification for the 12 months prior to applying, in addition to having 36 months of practical experience.

There are exemptions for some of the requirements to accept the test. They include earning a caste, diploma, or certificate from an accredited school, having a degree in mechanical engineering, being a licensed engineer, or having war machine training in HVAC. In that location is too an exemption for those employed by industrial operations, which wouldn't use if y'all were to strike out on your own.

Y'all'll too have to cull a class designation for your license. Class A licenses allow you to work on any size unit. Class B allows you to work on cooling systems 25 tons and under, as well every bit heating systems of i.five BTUs an hour and under.

To utilize, you lot must be 18 years erstwhile and ship in a completed application to the TDLR. In that location is a fee of $115. Once the TDLR reviews and approves your application, they'll contact you to take the test. If you pass and receive a license, it'll be your responsibleness to renew it each yr.

Later on passing the exam, there are insurance requirements you need to meet:

Class A:

  • $300,000 Per Occurrence for Holding Damage and Bodily Injury
  • $600,000 Aggregate for Property Damage and Bodily Injury
  • $300,000 Amass for Products and Completed Operations

Class B:

  • $100,000 Per Occurrence for Holding Damage and Actual Injury
  • $200,000 Aggregate for Property Damage and Bodily Injury
  • $100,000 Amass for Products and Completed Operations

Getting a urban center & municipal license

The state of Texas doesn't crave general contractors, domicile improvement specialists, or handyman services to hold a license. But recall: The area in which you lot're working might accept other ideas on paperwork.

The following are some examples of what requirements different areas have, only you need to check with your local municipality to be sure.

Austin contractor licenses

Austin's rules on full general contractors, subs, and trades are relatively straightforward. Essentially, Austin wants contractors to register with the Development Services Department likewise as the State of Texas. If the state requires a contractor to hold a license, Austin requires proof of that license earlier you can pull a permit.

Houston contractor licenses

All trades and subcontractors will have to annals with the city. To register, y'all'll accept to fill out the appropriate paperwork with the Houston Permitting Center.

Once registered, subs and trades will exist able to pull permits for demolition, remodeling, earth hauling, and other permits. Master Plumber Registration and Principal Electrician Registration forms are available through the permitting center's website.

Houston'due south registration requirements don't require general contractors to register with the urban center. They are expected to register their concern with the state, however.

San Antonio contractor licenses

Like Austin, San Antonio expects contractors to register with the city. If the state requires a license, San Antonio will also require yous to have a license. This means that subs and trades volition have to register with the city with their proof of licensing earlier they can pull permits.

Registration goes through the urban center's Evolution Services Section, though you lot will have to get through the San Antonio Police Department for a background bank check also.

There are 2 ways to register every bit a general contractor in San Antonio: equally a habitation improvement contractor or a residential building contractor. If you lot'll be engaging in repairs, replacement work, not-structural remodeling, and general updates, the home improvement contractor registration is enough. If y'all're doing structural work, you'll need to annals as a residential building contractor.

Dallas contractor licensing

The process of registering with the city of Dallas isn't as straightforward as other cities, but there are similar requirements. On all of Dallas's permit paperwork, it states the licensed contractors must annals with the metropolis.

Registration falls under the duties of the Edifice Inspection Section. Contractors interested in working in Dallas volition accept to create a login and utilize the urban center's Contractor Portal for more than details.

Texas contractor licensing penalties

While licensing is rather laid back in Texas, the country does take the licenses information technology requires very seriously. Both the TDLR and the TSBPE volition investigate complaints of unlicensed contracting, bringing fines and legal charges against those who violate the licensing statutes.

Whether you're an electrician, plumber, or HVAC contractor, working without a license where one is a requirement is a Class C misdemeanor, which could potentially bring some jail fourth dimension. Both the TDLR and the TSBPE can hit you with additional authoritative fees, equally well.

Licensed or not, payment protection is critical for Texas contractors

Information technology doesn't matter which state you're in, what your particular trade might be, or whether you hold a license: Cash flow issues affect every unmarried contractor in the building industry. Without a regular supply of cash coming in, the result tin can stunt your company'due south growth, or it tin cost you your company altogether. That'southward why information technology's and so important to protect your lien rights in Texas.

Protecting your lien rights means full general contractors should always file contracts with the canton recorder's office. Information technology also requires subs and suppliers to transport preliminary notices to the owner and general contractor on all their projects. They also accept strict mechanics lien deadlines to stay aware of, or they could lose their right to some or all of their payments.

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