Why Getting a Contractor’s License Makes Sense
Home remodeling, renovations, and construction initiatives have become more popular these days when the real estate market took a plunge down south. Homeowners have opted for repairs and remodeling in lieu of selling their properties because of low equity value. This is good news for contractors, however, there’s a catch. Not every contractor can take in jobs. Why?
In most states, only licensed contractors can accept jobs valued at $500 or more for labor and materials. While there are also some homeowners who hire unlicensed contractors to save on professional fees, most people want to be on the safe side and protect their interest by hiring a certified contractor.
Qualified contractors have licenses. It speaks of the person’s commitment to ensuring that he has all the qualifications, specialized skills, and experience required to complete a contracted job. While not all licensed contractors can guarantee quality work, unlicensed ones are type-casted to perform poor or fraudulent transactions. While being licensed doesn’t make you a better contractor than you already are, it makes you legitimate. As a result, customers will have more confidence in you since you are recognized as a true professional in the field of construction. You might have not thought about it this way but in some states such as California, having a contractor’s license does make a difference in the world, in terms of business credibility and your financial future.
By securing a contractor’s license, you get the following perks. More importantly, you will be able to start on the right foot and gain traction for your business without risks. Here are some good reasons why you should focus on getting certified:
You can become financially independent.
You no longer have to work for others since you can build your own firm and be your own boss. If you are more comfortable working for other firms or companies, you can accept side projects for additional income.
You are guaranteed payment.
Let’s face it. There are also some homeowners who are swindlers. Safeguard your interest and get paid for the work you have rendered. Exercise your Mechanics Lien Rights and demand payment you well deserve.
You can qualify for business loans.
Being licensed entitles you to apply for a small business loan in case you want to start your very own construction agency.
You are entitled to discounts.
Licensed contractors are favored discounted rates from suppliers, manufacturers, and home improvement depots.
You can enjoy tax breaks.
This is one of the greatest advantages of contractors. You get to write off your gas, vehicle, home, office, and other expenses.
You gain more financial security.
Never worry about losing a job again to a licensed contractor, or paying unforeseen fines and penalties for accepting “under-the-table” jobs. Once you have a license, you will have more financial security because you work under legal means. You can also report unlicensed contractors you lost to on legal bids.
You can qualify for bigger jobs and more contracts.
Unlicensed contractors are limited to jobs less than $500 in value. For licensed contractors, it’s the other way around. You will be able to bid for thousand-dollar, million-dollar, and even billion-dollar projects without fear of getting on a roll with the authorities. You can also vie for any type of project whether commercial, residential, and government projects.
You never have to be “Invisible” again.
Take pride in what you do by offering services published on bulletins, advertisements, and trade shows. Future clients will know you exist by handling out portfolio with your previous projects, testimonials, and of course, endorsements from groups and affiliates supporting your legality as a contractor and develop more lucrative business relationships.
You can take advantage of professional prestige.
The media recommends the public to hire only Licensed Contractors to avoid being a victim of scams and unscrupulous individuals. Having a license tells prospective clients that you are one to be trusted as far as construction is concerned — a credible professional with business ethics. You can also get invited to be a part of contractor organizations and become affiliated with reputable businesses, which could help uplift your credibility and status as a service provider.