Log In / Sign Up

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

 

 

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

To become a general contractor in Washington State, register with the Washington State Department of Labor & Industries (L&I), secure the required bond and insurance, submit the application, and pay the fee; general contractors can perform most work and hire subcontractors, while specialties have limits and separate rules. Bond amounts increased on July 1, 2024, to $30,000 for general contractors and $15,000 for specialty contractors. Application fees are published by L&I, with the current application fee listed as $141.10 on L&I’s registration page.

Working in Oregon? Learn how to become a general contractor in Oregon.

What is a Washington Contractor’s License?

A Washington contractor’s license is L&I registration required for anyone performing construction, remodeling, repair, or demolition on real property in Washington; registration enables bidding, advertising, and lawful performance of work.

Washington defines two classes:

  • general contractors can perform most categories and hire subcontractors
  • specialty contractors perform only their specialty and cannot hire subs
  • specific trades (plumbing, electrical, boilers, elevators, mobile homes, asbestos) require additional licensing or endorsements beyond contractor registration..

Do You Need a General Contractor’s License in Washington State?

Yes. Performing covered construction without an L&I registration triggers substantial penalties and fines under Washington law, and only registered contractors can bid and advertise for covered work. Registration also improves credibility with clients who use L&I’s Verify a Contractor tool to confirm status before awarding jobs, which can influence bid win rates.

Additionally (and more importantly, in our opinion), only licensed contractors have the right to lien in the event of non-payment. So, if a property owner refuses to pay for work you did on a property, you have the right to file a mechanic’s lien in Washington state and, if it comes to it, force the sale of the property to recover payment — but only if you’re licensed. Protect yourself in the future by registering with the state now!

Do Independent Contractors Need a Business License, Too?

We also get a lot of questions from independent contractors who wonder if they must register to obtain a license in Washington state. The Washington Department of Revenue requires independent contractors to obtain a business license unless they meet each of these three criteria:

 

1. You earn less than $12,000 per year before deducting expenses.

2. You do not make retail sales.

3. The Washington Department of Revenue does not require you to collect or pay any taxes that it administers.

Step-by-Step Guide: How to Become a General Contractor in Washington State

Under general contractor rules in Washington state, you should apply for a general contractor’s license if you complete construction, demolition, remodeling, or building repair. The Washington state legislature requires you to apply for a separate specialty contractor license if you intend to offer any of these 63 specialty services. Here are the documents you will need to gather up before completing and submitting your contractor registration form:

  • Social security number or Federal Employer Identification Number (FEIN). The first is for sole proprietors and the second is for general contractors who decide to establish a business entity.
  • Completed business structure registration that lists whether you will complete your contracting work as a sole proprietor, corporation, partnership, or limited liability company. Unless you plan to work under your own name as a sole proprietor, you will need to choose and identify a business name. Corporation owners should contact the Washington Secretary of State for instructions on how to proceed.
  • Surety bond of $12,000 to pay damages to clients for unfinished work.
  • General liability insurance to protect your assets in case of injury, property damage, third-party accidents, or client lawsuits. You will need a minimum of $50,000 in coverage for property damage and $200,000 in coverage to protect you from liability for an at-fault claim.
  • Proof of workers’ compensation insurance if you have or plan to hire employees.
  • Business and mailing address. Your mailing address can be a post office box number, but your business address must include an actual street name.
  • Previous registration information if you, your spouse, or anyone acting as a principal owner of your business have ever registered as a general contractor.

Once you have collected the required documents, you will need to sign your Washington general contractor registration and have it notarized. You can then deliver your application and supporting documents to the Washington State Department of  Labor & Industries office in person or mail them to this address:

Contractor Registration

P.O. Box 44450

Olympia, WA  98504-4450

How Much is a General Contractor’s License?

And now for the final (and least fun) part. As of March 2021, the fee to apply for a Washington contractor’s license or specialty license is $117.90. You will need to renew your license annually, and the renewal fee is the same as your initial registration fee.

How Northwest Lien Helps General Contractors in Washington State

Northwest Lien files mechanics’ liens, also known as construction liens, and preliminary notices electronically for contractors in Washington and Oregon — oftentimes, in as little as 48 hours. 


Once filed, you can track the progress of your lien online. We are here to support you through the process from choosing which type of lien to file for non-payment of funds owed to you to lien filing to collecting your money. Clients know you mean business when they see you have filed a construction lien through Northwest Lien; in fact, we’re especially proud of our record of obtaining an average of $2 million dollars on behalf of clients each year. Contact us or create a free account today to begin sending liens and notices through Northwest Lien.

 

Contact Us

  • This field is for validation purposes and should be left unchanged.
Summary
Washington Contractor’s License: How to Become a General Contractor in Washington State
Article Name
Washington Contractor’s License: How to Become a General Contractor in Washington State
Description
Become a general contractor in Washington state, obtain your Washington contractor's license, and protect yourself in the future with these simple steps.
Author
Publisher Name
Northwest Lien
Publisher Logo