Obtaining a Virginia contractor’s license is a great achievement that can create many opportunities. You are required to have a contractor’s license in Virginia if you are performing work in excess of $1,000. So, if you are a builder at heart and desire to make real money doing so, you will need a contractor’s license. The proper steps to get your Virginia commercial contractor’s license are important to follow to avoid rejection on your license application. The following steps demonstrate how to get a Virginia commercial contractor’s license:
- Create a business entity and register the name
- Take your trades exam (NASCLA)
- Take your Business and Law Exam
- Choose what license Class (Class A, Class B, or Class C)
- Identify the responsible management
- Identify your qualified individual. This individual must be a full-time employee.
- Identify your designated employee to complete the examinations
- Submit the application financial statement form
- Submit the contractor experience verification form
- Pay the application fee
The NASCLA Exam
At passthenasclaexam.com we offer training for the NASCLA exam. The NASCLA exam serves as the trades exam for the Virginia commercial builders license. The NASCLA exam is a 23 book, open book exam, and is 5-1/2 hours long. Taking a course to understand each book is HIGHLY recommended. This is A LOT of material to digest on your own. We recommend the NASCLA exam. After completing the NASCLA exam you are eligible to apply and hold a license in 16 states and the US Virgin Islands.
If you take your state’s contractors exam there is a good chance you can only reciprocate the license in a handful of other states. If your business expands or you ever move, having this reciprocity is important. On top of that, 11 of the 16 include NASCLA as the commercial and residential trades exam. Meaning if you take the NASCLA, you can qualify for both sectors of construction. You will register for the NASCLA exam which takes about 7 business days for approval. You will take this exam through PSI Exams.
Virginia Business and Law Exam
After completing the NASCLA exam you will need to take the Virginia Business and Law exam to get a Class A or Class B license. The Business and Law exam will test your knowledge on the Virginia Business and Law book. This exam is a much shorter exam than the NASCLA. Our course is focused on the NASCLA only, as we feel the Business and Law exam can be studied for on your own.
Virginia Class A Contractor License
Virginia breaks it’s contractor classifications up into separate categories. A Class A Virginia contractor license allows you to perform projects of any dollar value. Class A Virginia contractor license is a popular choice due to versatility it gives you for performing any project size. Virginia Class A contractor license must provide proof of financial responsibility. Virginia Class A contractor license applicants must document $45,000 in net worth/equity.
Virginia Class B Contractor License
Virginia Class B contractor license allows you to perform projects up to $120,000, with the limit of total amount of projects value in a year being $750,000. Virginia Class B contractor license applicants must provide proof of financial responsibility. Class B contractor license applicants must document $15,000 in net worth/equity.
Virginia Class C Contractor License
Virginia Class C contractor license allows you to perform projects less $10,000, with the limit of total amount of projects in a year being $150,000. There are requirements to the Class levels in Virginia.
Virginia License Classification Fee’s
There is a fee for completing the Virginia contractor’s application. For a Virginia Class A contractor license the fee is $360.00, for a Virginia Class B contractor license the fee is $345.00, and for a Virginia Class C contractor license the fee is $210.00.
Timeframe of Forming an Entity
It is important to note that you must register a business entity before applying for a Virginia contractor’s license. Part of the application process is providing your business entity, EIN, and business location. You would provide your social security number in lieu of an EIN if you are a sole proprietorship. Having this all set up before you apply is a requirement.
Qualified Individuals
The Virginia contractor’s application has a section to provide the qualified individual if this is applicable. If you already have your credentials and have a license or certification number, you can provide that information. This would be in the case of being licensed in a reciprocating state and adding Virginia to your license, or transferring a license to another entity. The qualified individual will be either a full-time employee of the business (working a minimum of 30 hours or more with the business per week) or listed as a member of the Responsible Management. They must have the minimum years of experience in the classification or specialty they are applying. Two (2) years for a Class C License, three (3) years for a Class B license, and five (5) years for a Class A license. An experience verification form for each qualifying individual shall be part of the application.
Responsible Management
You must also provide the Responsible Management of the entity when completing your Virginia contractor’s license application. This would be yourself if you are a sole proprietor, or the members/managers of the LLC if you are if you are filing under an LLC. The Responsible Management must complete a board approved pre-license course.
As mentioned previously, the NASCLA exam would serve as your trades exam to get your commercial building contractor’s license. There is a list of all of the license classifications on the application where you will note the classification you are applying for (CBC). After selecting and providing the information of the Commercial Building Contractor there is background check section which you will complete a variety of ‘yes’ or ‘no’ questions related to your background and any potential penalties you may have faced in the past or present.
Virginia Contractor’s Application Checklist
Along with your Virginia contractor’s application there a number of attachments you must also include. Below are the attachments that may be applicable to you:
- A copy of a government issued photo ID for each member of the Responsible Management, Designated Employee, and all Qualified Individuals listed on the application
- A business with an assumed/fictitious name must attach a copy of the certificate filled with the Virginia State Corporation Commission
- Any Designated Employee or Qualified Individual listed on this application must submit verification of employment if not a member of Responsible Management
- Attached documentation verifying business FEIN number
- Completed the pre-license education course taken by Designated Employee or member of Responsible Management
- Qualified Individuals must attach a copy of any certifications – if required
- Experience verification form completed for each qualified individual who is seeking pre-approval for an examination per the designation requested
- All required documentation to support the special request for the Miscellaneous Contracting (MSC) designations shall be submitted with the application.
- Designated employee must complete the business examination
- All disclosure forms and supporting documentation
All applicants for Class A or Class B license types must submit ONE of the following: Financial Statement Form, CPA review/audit, or Surety Bond Form (the financial statement verification form can be found on the Department of Professional and Occupational Regulation website)
Conclusion
A Virginia contractor’s license is required if you are planning to perform work in excess of $1,000 in value. With a limit so low, it is a wise idea to get your contractor’s license in Virginia if you plan to do any work. If your plan is to get your commercial builder’s license, the NASCLA exam is the way to go. With a reciprocity is in 16 states, it is a good option. Business and Law exam is then taken for each state you desire to carry a license in. We hope this article was helpful in navigating your way through how to get a Virginia contractor’s license. Good luck!