How to Become a General Contractor in Washington State

Quick Answer: How to Become a General Contractor in Washington State

To become a general contractor in Washington, you must register with the Department of Labor & Industries (L&I). Registration allows you to legally bid, advertise, and perform construction work statewide. The process requires:

Secure a Bond: Obtain a $30,000 surety bond ($15,000 for specialty contractors).
Get Insured: Purchase general liability insurance ($200k/$50k minimums).
Submit Application: Mail the notarized application with the $141.10 registration fee.

What is a Washington Contractor’s License?

A Washington Contractor’s License is technically a registration with the Department of Labor & Industries (L&I). It is required for anyone who advertises, offers, or performs construction, repair, or remodeling work.

The Rule: If you earn money improving a property, you likely need to register.
The Exception: You only don’t need to register if the total project cost (labor + materials) is under $500 and you do not advertise your services.

2 Core Classifications: What are the Types of Contractor Licenses?

Washington L&I defines two primary contractor classes:

- General Contractor: Authorized to perform most construction work and hire subcontractors.
- Specialty Contractor: Restricted to one specific trade (e.g., cabinets, drywall) and cannot hire subcontractors. There are 63 distinct specialty trades.

Do I Need a Contractor License in Washington?

Yes, if you build, remodel, repair, demolish, or move structures in Washington. Unregistered contractors face significant risks:

Fines: You may face substantial state penalties.
No Lien Rights: Unregistered contractors have zero legal right to file a mechanic’s lien if a client refuses to pay.

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Do Independent Contractors Need to Register?

Yes, most independent contractors must register. Confusion often arises between the Business License (Department of Revenue) and Contractor Registration (L&I).

Contractor Registration (L&I): REQUIRED if you do any work valued over $500, regardless of your annual income.
Business License (DOR): You may be exempt from the state business license fee only if you meet all three of these criteria:
- You earn less than $12,000 per year (gross income).
- You do not make retail sales.
- You are not required to pay/collect administrative taxes.

Note: Even if you are exempt from the DOR business license fee, you likely still need a UBI number to get your L&I contractor bond.

Table Summary: Washington State Contractor License Application Requirements

Category	Document	Specific Requirements
Business Setup	UBI Number Entity Registration Federal EIN	9-digit ID from Dept. of Revenue. Filed with Sec. of State (LLC/Corp only). IRS-issued ID (Required if hiring employees).
Financial Security	Surety Bond Liability Insurance	Original, signed document. $30k (General) or $15k (Specialty). Cert. holder must be L&I. $200k public / $50k property (or $250k combined).
Admin & ID	Signatures Principal ID Physical Address	Notarized on application form. Photo ID + SSN (or ITIN) for all owners. No P.O. Boxes (Mailing address can differ).
Fees	Registration Fee	$141.10 via check/money order. Payable to: Department of Labor & Industries.

Checklist: Documents for Registration

The documents you will need to gather before starting your application for a license are:

1. Proof of Business Setup

Unified Business Identifier (UBI) Number: Your 9-digit business ID issued by the Department of Revenue.
Business Structure Registration: Proof of your legal entity (LLC, Corporation) filed with the Secretary of State (sole proprietors are exempt from Secretary of State filing).
Federal Employer Identification Number (EIN): Required from the IRS for all business types except sole proprietors without employees.

2. Financial Security Documents

Mandatory Continuous Contractor Surety Bond: An original, uncorrected bond document signed by your agent and bearing the company seal.
- General Contractors: $30,000.
- Specialty Contractors: $15,000.
Certificate of General Liability Insurance: Must list Labor & Industries (L&I) as the certificate holder.
- Minimum Coverage: $200,000 public liability / $50,000 property damage (or $250,000 combined single limit).
Minimum Coverage: $200,000 coverage for public liability and $50,000 for property damage, or a combined single limit of $250,000.

3. Personal & Administrative Information

Principal Affidavit and Signatures: All owners/partners must sign the Application for Contractor Registration in front of a notary.
Vald ID: A government-issued photo ID (such as a driver’s license) and Social Security Numbers (or ITIN) are required for all principals.
Business Address: A physical street address is necessary for the business location (no P.O. boxes), but a P.O. box can be used for mailing purposes.
Previous History: Details of any past contractor registrations belonging to you, your spouse, or other principal owners.

4. Registration Fee

Payment: A check or money order for $141.10 payable to “Department of Labor & Industries”. (Valid for 2 years).

Note: If you’re hiring employees, you are required to open a workers’ compensation account with L&I via the Department of Revenue.

Exceptions and Additional Licensing

Trade Licenses: High-risk trades like plumbing, electrical, elevators, boilers, and asbestos removal require separate licenses, specific training, and passing an exam.
Handyman Exception: You can work without registration if the total costs (labor and materials) are under $500 and you don’t advertise.
Local Requirements: Some cities, like Vancouver and Olympia, require additional local licenses for contractors.

5 Steps: How to Apply for a Washington Contractor License

Follow this step-by-step guide to register your business and secure your license from the Washington Department of Labor & Industries (L&I).

Register Business: Obtain your Unified Business Identifier (UBI) number from the Department of Revenue.
Purchase Bond: Secure a $30,000 continuous surety bond (or $15,000 for specialty contractors).
Get Insurance: Purchase a general liability policy ($200,000 public liability / $50,000 property damage).
Notarize: Complete the Application for Contractor Registration and have it notarized.
Submit: Mail your application and $141.10 to:

Contractor Registration, P.O. Box 44450, Olympia, WA 98504-4450

How long does it take to get a general contractor license in Washington state?

Mailed applications take 3–4 weeks. Apply in person at a local L&I office for same-day registration.

Pro Tip: After applying, use the L&I Verify a Contractor tool to perform a contractor license WA lookup and confirm your registration is active.

Is being your own GC worth it?

Yes. Beyond avoiding fines, the most critical reason to get licensed is to protect your revenue. Only licensed contractors have the right to file a mechanic’s lien. If a client refuses to pay, an unregistered contractor has no legal power to force payment through a lien. Don’t risk your livelihood. Get licensed.

FAQs: Becoming a General Contractor in WA

How difficult is it to get a contractor license in Washington?

Compared to other states, it is relatively easy. Washington is currently a “registration” state, not a “licensing” state for general contractors. This means you do not need to pass a trade exam or prove years of experience to register. You simply need to meet the bonding and insurance requirements.

Can I register as a general contractor online?

No, not entirely. While you can register your business (UBI) with the Department of Revenue online, the L&I Contractor Registration application must be notarized and physically delivered. You must either mail the packet to Olympia or visit a local L&I office in person.

What is the difference between a Handyman and a General Contractor?

In Washington, the difference is strictly financial. If a “handyman” performs work totaling more than $500 (labor and materials combined), they legally become a contractor and must register with L&I. There is no separate “handyman license”—you either stay under $500 or register as a General/Specialty contractor.

How much money do I need to start a contracting business?

While the registration fee is only $141.10, you should budget $1,000–$1,500 for startup costs. You typically pay 1-5% of the bond amount (approx. $100–$500/year) and around $500–$1,000/year for liability insurance, depending on your credit and business type.

How much does a General Contractor make in Washington?

Income varies widely by experience and region. As of 2025, the average base salary for General Contractors in Washington ranges from $70,000 to $110,000+ annually, with self-employed business owners often earning significantly more depending on project volume.

Other Sources:

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Washington Contractor’s License: How to Become a General Contractor in Washington State

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Become a general contractor in Washington state, obtain your Washington contractor's license, and protect yourself in the future with these simple steps.

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Northwest Lien

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