Planning to do construction work in Utah? You’ll need to get a contractor’s license.
In addition to protecting your business, a Utah general contractor’s license can boost your profit potential by helping you land bigger jobs. Without a license, you’re limited to projects valued at less than $3,000.
Although the state of Utah has strict requirements for general contractors, we’re here to help you every step of the way. Read more about how the licensing process works, including:
According to Utah’s state laws, anyone who works in the construction, plumbing or electrical trades is a contractor. If your work falls into one of these categories, you’ll need a professional license from the state.
Utah offers several contractor classifications, including the following general contractor classifications:
In addition, there are specialty contractor license classifications, such as:
Review the entire list of Utah contractor license classifications to determine which one fits the type of work that you do.
There are six steps to get your contractor’s license, including:
Before you apply to become a contractor or subcontractor in Utah, you’ll need to fulfill the following requirements:
Specialty contractors must take a 25-hour course, while general, plumbing, and electrical contractors must take a 30-hour course. You can choose from a list of approved course providers.
All licensed contractors in Utah must have general liability insurance with a minimum coverage of $100,000 per incident and $300,000 total. After purchasing coverage, you’ll receive a certificate of insurance. You’ll need to list the Utah Department of Occupational and Professional Licensing (DOPL) as a certificate holder. (Tip: NEXT lets you add certificate holders easily online. No need to call your agent.)
Apply to become an LLC, LLP, corporation or partnership with the Utah Division of Corporations and Commercial Code. For sole proprietorships, licenses are issued under the applicant’s name.
You’ll also need an Employer Identification Number (EIN) from the IRS for your construction business entity. Sole proprietors may use their Social Security Number (SSN) instead.
If you are applying for a B100, E100 or R100 classification, you’ll also need to:
If you are applying for an E200, E201, P200 or P201 classification, you’ll also need to:
Once you’ve met the Utah contractor license requirements, it’s time to submit your application. Forms for Utah contractor license applications are available online.
Submit your application by mail or drop it off in person at the Utah Department of Occupational and Professional Licensing (DOPL) in Salt Lake City. Wait four to six weeks before checking on the status of your application.
The number of classifications you’re applying for will determine your application fee. Follow the application instructions to calculate your total fees and correctly make out the check.
There are no Utah contractor’s license reciprocity agreements currently available. However, you may be able to apply for licensure by endorsement if you already have a contractor’s license in another state.
In order to be eligible, your contractor license must be valid, active and in good standing for at least one year in a qualifying state or jurisdiction. Contractor licenses from select states are equivalent to a Utah license. In others, the endorsement only applies to certain license classifications, such as electrical, plumbing or HVAC.
To obtain this endorsement, submit an official verification of your license with your application.
All Utah contractor licenses expire on November 30 of odd-numbered years (2023, 2025, 2027, etc.). To renew your license, you need to fulfill these requirements:
In addition to a contractor’s license, Utah business owners must obtain the proper insurance. Consider the following types of business insurance for Utah contractors:
General liability insurance can help cover a wide range of basic risks for contractor businesses, including third-party injuries and property damage. All Utah contractors must show proof of this insurance coverage in their license application. The minimum coverage required is $100,000 per incident and $300,000 total.
This insurance can help provide coverage when you or an employee gets hurt on the job. Contractors in this state who have employees are required to have proof of Utah workers’ compensation insurance with the DOPL listed as a certificate holder.
Also called professional liability or E&O insurance, this coverage can help with legal defense fees and other costs if you’re accused of making a mistake on the job.
Commercial auto insurance can help cover medical expenses, property damage and other costs if an accident occurs in a business vehicle.
If something happens to your gear, tools and equipment insurance can help cover the costs to replace or repair stolen or damaged items.
Utah contractors who own or rent real estate connected to their business, such as a storage space for equipment, may want commercial property insurance. This insurance can help cover accidents, theft and other incidents.
NEXT specializes in insurance for small businesses like yours, which makes us a great resource for all your contractor insurance needs. We can create a custom insurance package based on your specific business, and you’ll get a discount for combining two or more policies.
Applying is easy with our online services. We can even help you with your application requirements by providing a certificate of insurance within minutes.
Ashley Henshaw was a contributing writer at NEXT. She specializes in small business topics, covering everything from insurance and branding to web hosting and cryptocurrency.
Her work has appeared in The Huffington Post, AOL City's Best, Citysearch, USA Today, The San Francisco Chronicle and Livestrong.
