Hawaii Contractor License: The Full Manual (2022)
 
If you want to interact in residential or business design in Hawaii, you have to undertake a licensing procedure with the condition Division of Commerce and Buyer Affairs. It is the authority that difficulties the Hawaii contractor license. 
There are three most important forms of licenses that you can opt for from :
- General engineering contractor 
- Normal setting up contractor
- Specialty contractor 
All of thesemain styles of contractors also have specified subtypes of license. In get to attain any of the Hawaii contractor license classifications, you have to satisfy a list of specifications.
For an overview of the conditions and the course of action, you can check with with the acceptable sections below. 
The Hawaii Contractor License Requirements
The licensing authority is the Contractor License Board at the Skilled and Vocational Licensing Division of the Office of Commerce and Shopper Affairs. It has decided the requirements that you have to meet up with in get to get your point out of Hawaii contractors license. 
Business enterprise Entity Registration or SSN
You have to sign up your entity with the Small business Registration Division (BREG), Division of Commerce and Buyer Affairs. This applies for firms, partnerships, LLPs and LLCs. 
If you&rsquore implementing as a sole proprietor, you should supply your social protection range (SSN). 
Trade Title 
In scenario you&rsquore planning to use a trade title, you have to get a filed-stamped copy of recent trade title registration permitted by the BREG.
Fiscal Statement
Get a compiled, reviewed or audited money assertion. It has to be considerably less than a single yr outdated.
You also want to submit an impartial accountant&rsquos report. 
Credit score Report
For each and every officer, associate, manager, or member, you require to file a recent and finish credit report covering the previous five yrs.
The report has to be issued within the very last six months. 
Tax Clearance
If your firm is additional than 1 yr old, you have to have to give a recent Hawaii State Tax Clearance with an first Point out Office of Taxation stamp. It ought to be issued within just the past 6 months. 
RME/Entity Appointment
You have to appoint a responsible controlling employee for your small business. If you don&rsquot have this kind of a Hawaii RME license nevertheless, you have to entire the Responsible Controlling Personnel software. This is applicable for all entities other than sole proprietorship. 
Place of Enterprise
You will need to maintain a bodily spot where you show your contractor&rsquos license. 
Record and Practical experience
In circumstance you are making use of as a sole proprietor, you have to display at minimum four years of working experience as a supervisor. You require to submit at the very least 3 notarized certificates in guidance of your supervisory working experience. You also have to offer a chronological history of your tasks. discover this will need to go the Hawaii contractors license exercise examination them selves (in its place of their RME).
Finish the Hawaii Contractor License Software
When you have gathered all essential paperwork shown above, you can transfer to the true software method. You have to complete an application sort provided by the Hawaii Contractors License Board. There are two kinds, dependent on your entity:
- Corporations, partnerships, joint ventures, LLPs and LLCs
- Sole proprietors
Ship all paperwork to the Board by mailing it to:
Contractors License Board
DCCA, PVL Licensing Department
P.O. Box 3469
Honolulu, Hello 96801
Alternatively, you can supply it in person to:
335 Merchant St.,
Home 301,
Honolulu, Hello 96813 
Notice: The Board fulfills every month, other than for December. You have to ship your paperwork on or in advance of the first Tuesday of the thirty day period prior to the scheduled conference date. You can find out its plan on-line.
Licensing and registration expenses
Together with your finished type, you have to fork out a $fifty non-refundable application payment for every single software. 
The Board sets your licensing expenses soon after acceptance. 
Subsequent stepsThe Board has to assessment your software. If authorized, the RME has to register with a screening company for an examination and to get it the pursuing month. In situation they go it, you receive the licensing demands, which are detailed in the future portion. When you fulfill all of them, the Board difficulties your Hawaii contractor license. 
Provide a Surety Bond and Insurance plan
The further licensing needs entail supplying two varieties of insurance coverage and a surety bond. 
Worker&rsquos Compensation Insurance policies
All corporations employing workforce have to get a certification of employees&rsquo compensation insurance coverage. One-member and member-managed LLCs with no workforce are exempt. 
Liability and Residence Destruction Insurance policy
You have to get bodily damage coverage with limitations of $100,000 for just about every man or woman and $300,000 for every occurrence, as perfectly as house harm insurance coverage with a restrict of $50,000 for every occurrence. 
Surety Bond 
The Board may demand you to attain a surety bond. It sets the sum of the bond on a case-by-scenario foundation. The minimum amount sum is $five,000. You have to present it in the official kind. In get to get a bond, you have to fork out a tiny portion of the needed volume. This is your quality. If your finances are in very good condition, you can hope premiums amongst .seventy five% and 5% of the bond quantity.
Uncover out exactly what your contractor license bond will value, by filling out our quick application sort underneath!
How to Confirm Your Hawaii Contractor License
You can check the validity of your license by Professional & Vocational Licensing Lookup. You can look for by license amount or business enterprise/individual.  
License Renewal and Expiration
You have to renew your license each two yrs if you want to keep on your operations. The deadline for renewal for all licensees is September 30 of every single even-numbered calendar year. You need to have to send out your renewal application just before August fifteen preceding that day. 
Do you want to get your Hawaii contractors license, but you aren't sure how? Regardless of whether you're a normal contractor, plumber, or an electrician, this guidebook involves all the things you need to have to know about the system.
In this tutorial, we'll wander you by what you want to know to turn into a licensed contractor in the state of Hawaii. Permit's dive in!
Do I Will need a Contractors License in Hawaii?
Like most states, everyone who is contracted for residential, community functions, construction, improvements, or anything of the like need to have a contractor's license.
In accordance to the Hawaii Revised Statutes part 444-7(c), a basic contractor is defined as, "a contractor whose principal contracting organization is in connection with any composition built, staying designed, or to be built, for the assist, shelter, and enclosure of people, animals, chattels, or movable home of any kind, requiring in its design the use of extra than two unrelated creating trades or crafts, or to do so superintend the total or any component thereof."
In other phrases, if you do contracting get the job done, you will need to be licensed. There are several sorts of contractor license classifications identified by the Hawaii Contractor's License Board, which you can examine out here.
But not only is currently being licensed significant from a compliance viewpoint, but it's also terrific for business. People want to employ the service of contractors that are not only regulation-abiding, but that have been verified to fulfill the knowledge, schooling, and other prerequisites as established by the Point out of Hawaii.
Contracting function can make shoppers nervous&mdashit's a major undertaking both equally monetarily and bodily in most situations&mdashso being certified can aid place nervous minds at simplicity.
How do You Get a Hawaii Contractors License?
Even though there are rather a several necessities to get your Hawaii contractors license, they are pretty common terms.
Applicants must meet the pursuing requirements:
You have to be 18+ years outdated.
You should disclose your Social Stability range and a credit report from the previous 6 months.
You will have to have a fantastic standing.
You should prove 4 several years of supervisory encounter (in the final ten a long time of your application day) as nicely as a chronological background of projects type.
You should take and go the test that corresponds with the license you wish to use. However, you gained't be ready to take the examination right until your software is accepted.
You must give a compiled, reviewed, or audited monetary statement together with an independent accountant's report of your money standing.
You must receive the correct insurance plan protection like typical liability coverage and staff' payment.
You should contain a current Hawaii Tax Clearance with an original Condition Section of Taxation stamp.
If you want to use a buying and selling identify, you're expected to submit a file-stamped duplicate of that name registration approved by the Hawaii Business enterprise Registration Division of the Division of Commerce and Consumer Affairs.
If you've registered (or system on registering) your enterprise as an LLC or joint enterprise, you ought to appoint a Registered Managing Worker. If you haven't registered nevertheless, be guaranteed to do so with the Company Registration Division (BREG), Division of Commerce and Buyer Affairs.
You'll be questioned to provide this information and facts both in the software alone or at some stage throughout the system.
There are a number of expenses you're liable for paying out:
Software charge: $50.00 for every application.
Examination fee: $75.00 per part.
License fee: For contracting entities and sole proprietors, you'll spend $663.00 if you get your license between October 1 of an even-numbered 12 months and September 30 of an odd-numbered calendar year, and $494.00 if you get your license involving October one of an odd-numbered calendar year and September 30 of an even-numbered year.
The moment you meet these specifications, you're very well on your way to getting to be a accredited contractor in Hawaii. On the other hand, there are a number of other significant information we need to have to deal with, as properly.
Important Software Specifics You Need to Know
When making use of for your contractor's license, it's important to have your ducks in a row to not hold off the processing time. An incomplete application signifies a for a longer period hold out time&mdashand extra do the job on your conclusion finding what documents or details is missing.
Enable's get a look at some of the important information of the software approach.
1. Get the good coverage protection.
All accredited contractors who function in Hawaii are essential to maintain latest guidelines of the two workers' compensation insurance policy (if you have workers, of study course) and general legal responsibility and house damage insurance.
In accordance to the application, if your protection expires and you fail to reinstate it in just 60 days of expiration, you're issue to computerized forfeiture of your license. The ethical of the tale: continue to keep your protection up to date!
To satisfy the staff' payment demands, you need to have to not only offer a certification of coverage but a assertion from your provider that they'll notify the Board of any modifications about the insurance.
For normal legal responsibility and assets injury insurance plan, you should post a certificate from a provider that is approved to do business in Hawaii, displaying total policy coverage. You are required to have the following minimums for each and every kind of legal responsibility insurance policy:
Bodily damage liability: $one hundred,000 for every person and $300,000 for every occurrence
Home damage liability: $50,000 for each event
Make sure you're having the right coverage at the ideal price tag by requesting a quotation to assure you're coated.
two. Get ready for and program your contractor&rsquos test.
Immediately after your application is accepted, the Contractor Board of Hawaii will notify you when you can routine an examination for your Hawaii contractors license.
There are two pieces to the contractor's exam:
Organization and Regulation Test (Element 1): This examination will check your knowledge of contractor procedures and legal guidelines. Not like other states, this examination is closed e-book, indicating you can't use notes, and you will have to score a seventy five% or bigger to pass. You can locate the formal rules and regulations on the Department of Commerce and Shopper Affairs, Skilled & Vocational Licensing Division internet site.
Trade Examination (Aspect two): This section of the exam will examination your information about a assortment of products and services that contractors offer dependent on the trade. This exam is also closed e book, and you need to rating at minimum seventy five% to move.
Prometric administers all exams. For research resources, stop by the Prometric Hawaii Building Tests website.
three. Register your small business with the Hawaii Secretary of Condition.
All candidates ought to register their small business with the Office of Commerce and Customer Affairs. The course of action is straightforward, and with your eHawaii.gov account, you can regulate your registration all from one particular dashboard.
Check out out our speedy guide if you need to have recommendations registering your organization in Hawaii.
You can register your business as an LLC, LLP, corporation, sole proprietor, and a nonprofit. The cost of registering will rely on the style of organization entity you opt for.
How Considerably Do the job Can You do Without a Contractor License in Hawaii?
If the price for the do the job (labor and components) is less than $1,000, a contractor&rsquos license is not essential.
Does a Handyman Need to have a License in Hawaii?
Whether or not you have to have a license is determined by the price of the labor and resources for a specific job. As we described previously mentioned, if the overall value is far more than $1,000, a certified contractor is required to conduct the perform.
Get Your Contractor License with Our Basic Information!
If you have more thoughts about contractor licensing, the approach, or the necessities, depart a comment under! We're delighted to support.
Also, check out our guidebook on How to Develop into a Basic Contractor in six Measures for extra helpful tips.