Wednesday, July 31, 2013

How to Check a Contractor's Business License

States encourage contractors to be licensed in order to protect consumers against fraud. So, most make it very easy to check a contractor's business license to see if they're legitimate. Using only licensed contractors is important not just for ensuring quality work, but can increase your peace of mind that the person working on your home or office is insured in case anything should happen.

Suggestions

  1. Identify the state. Most likely, the contractor's license will be issued by the state in which the work is being done. Though a contractor should not be working in a state in which they are not licensed, this might not always be true in border regions. If, after following these steps, you can't find a record of the license, ask the contractor which state they're licensed in.
  2. Visit the state website. By searching for your state and the term "contractor license" you should find the state's web portal for occupational licenses. In some states it's called the License Registrar, and in other the License Board or Department of Professional Regulation. The bottom line is that every state has an internal search function for licenses.
  3.  Enter your search terms. The searchable terms will vary by state. All will allow searches by the name of a company or the principal of the company. Some will also provide for searches by county, license type, or license number. Clearly, the more information you know about a contractor, the easier it should be to find their license. However, to remain discrete, it might work to use the name of the company or the license number if it is printed on one of their trucks.
  4. View status. If the search has any results, the display will show what kinds of licenses are registered under the name and the status of those licenses. Those that have expired or are null and void should raise a red flag, but does in fact confirm that the individual at least at one time possessed the license. This is probably preferable to a contractor that never did at all.

Tip

  • The websites of major cities sometimes also provide state license searches as a service to their citizens. If you're a resident of a large city, it might be helpful to start there first.

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