• Why Starting Early is Crucial for Your Contractor License

    May 27, 2025
    Ori Gross

    Don't wait to get your tools in a row!

    Getting your contractor license might not sound like the most thrilling adventure (unless you love paperwork and state forms, in which case—respect). Still, it remains one of the most crucial steps for anyone seeking to establish a serious career in construction or the skilled trades. And just like setting a good foundation for a building, starting early makes everything stronger, faster, and way less stressful.

    Let's dive in—toolbelt first.

    What is a Contractor License, Anyway?

    Before we go full steam ahead, let's back up the truck for a sec.

    A contractor license is a permit issued by a state, city, or county government that legally allows you to work on certain types of construction projects, like plumbing, electrical work, roofing, or general home improvements. Without it, you might be limited to small jobs or face fines if you're caught working without one.

    In short: No license, no dice.

    The Clock is Ticking: Why Start Early?

    Getting your contractor license isn't like signing up for Netflix. It takes time. Here's why jumping in early can save you loads of headaches later on.

    1. Education and Experience Requirements Take Time

    Most states require a specific number of work hours or years of experience before you can even apply. Some also require schooling or apprenticeship programs. If you'll get your license next week and be building skyscrapers by the weekend, pump the brakes.

    Example: California requires four years of journeyman-level experience within the last ten years to qualify. That's not something you can fake overnight.

    Starting early gives you time to build that experience—and document it.

    2. The Paperwork Maze is Real

    Applications, background checks, proof of insurance, references, financial statements… It's a lot. One missing document can delay your approval by weeks or even months.

    Early birds have time to double-check everything. Late birds get worms… and resubmission fees.

    3. Exams Are No Joke

    You'll likely have to pass a trade exam and a business/law exam. These aren't pop quizzes. They cover technical knowledge, safety laws, building codes, contracts, and other relevant topics.

    Studying takes time, and passing is not guaranteed on the first try. It's better to start studying early and avoid last-minute panic.

    4. Delays Can Cost You Jobs

    Let's say you receive a substantial job offer, but they require a licensed contractor. If you're not ready, the gig goes to someone else. Ouch.

    Having your license early means you're always ready to grab opportunities as they come. No scrambling. No explaining. Just "Yep, I'm licensed. Let's go."

    Real Talk: What Happens If You Wait Too Long?

    We get it—life happens. But waiting too long can throw a serious wrench into your plans.

    Legal Trouble

    Working without a license in states that require one can lead to:

    • Fines

    • Lawsuits

    • Cease-and-desist orders

    ...and that's if you're lucky.

    Missed Career Growth

    Without a license, you're stuck under someone else's umbrella. That means less money, less control, and fewer chances to grow your own business.

    Financial Frustration

    You can't bid on high-paying contracts without a license. The longer you wait, the longer you stay stuck doing smaller, lower-paying jobs. That dream of buying a work truck with your logo on it? Keep dreaming.

    How to Start Early (and Smart)

    Okay, we've hammered the point home. But how exactly do you start early without getting overwhelmed?

    Step 1: Know Your State Requirements

    Each state (and sometimes city) has its own rules. Google your state's contractor licensing board and read everything. Please print it out. Highlight it. Frame it.

    You want to know:

    • Required experience

    • What exams to take

    • What documents are needed

    • Fees

    • Deadlines

    Step 2: Start Tracking Experience Now

    Even if you're starting, keep a log of your hours, supervisors, job sites, and tasks. Apps, spreadsheets, or even a good old-fashioned notebook all work.

    This info will be gold later.

    Step 3: Sign Up for Exam Prep Courses

    Don't wing it. Get proper study materials or take online prep classes. These exams are no joke, and the prep makes a huge difference.

    Bonus: Some prep courses offer job placement help, too.

    Step 4: Budget for It

    Licensing can cost hundreds (or thousands) of dollars when you add up application fees, exam fees, bonding, insurance, and more.

    Save up early so you're not caught short when it's go-time.

    Step 5: Talk to Licensed Contractors

    Find a mentor. Ask them how they got licensed, what mistakes they made, and what they'd do differently. Learning from others can shortcut your path—and might even open up job opportunities.

    The Long-Term Benefits of Starting Early

    Let's say you do all this and get your license early. What now? Here's what you gain:

    More Money

    Licensed contractors can charge more—plain and simple.

    More Freedom

    Work for yourself. Start a business. Hire a crew. Be the boss.

    More Respect

    A license shows you're serious, qualified, and professional. Clients and contractors will trust you more.

    More Jobs

    You'll be eligible to bid on government contracts, corporate projects, and other high-paying gigs you'd miss out on otherwise.

    Final Thoughts: Lay the Groundwork Early

    Getting your contractor license is like building a house: skip the foundation, and it all falls apart. But when you start early, you're giving yourself time to learn, grow, and nail it the first time.

    Plus, nothing feels better than walking onto a job site and knowing you've got the papers—and the skills to back it all up.

    So don't wait until the pressure's on. Grab your blueprint, gather your tools, and start today.

    Frequently Asked Questions: Contractor License Edition

    1. Do I need a license to work as a contractor?

    In most states, yes, especially if you're working on jobs over a certain dollar amount. Even if you're doing small side gigs, many cities require you to register or be licensed. Working without one could lead to fines or even legal trouble.

    2. How long does it take to get a contractor license?

    It depends on your location and your experience level. If you already have the required work hours and paperwork in place, the process may take a few months to complete. However, if you're starting, it may take a few years to gather the necessary experience to apply.

    3. What kind of exams do I have to take?

    Most states require two main exams:

    • A trade exam, which covers the specific type of work you'll be doing (plumbing, electrical, general construction, etc.)

    • A business/law exam, which tests your knowledge of contracts, building codes, safety regulations, and managing a business

    Some states also require additional exams depending on your specialty.

    4. Can I study on my own for the exams?

    Yes, but be prepared—it's not easy. Many people choose to take preparatory courses or use study guides to improve their chances of passing the exam the first time. Online and in-person options are widely available.

    5. What happens if I fail the exam?

    You can usually retake it after a waiting period, although a fee may apply. That's why it's smart to start studying early and take the test seriously the first time you take it.

    6. Is getting a license expensive?

    It can be. Costs vary by state, but here are some typical expenses:

    • Application and exam fees

    • Background check

    • Bonding and liability insurance

    • Business registration fees

    Altogether, it can run from a few hundred to a few thousand dollars. Planning makes it more manageable.

    7. Can I apply for a license if I don't have experience yet?

    Usually, no. Most licenses require a specified number of years or hours of work experience under the supervision of a licensed contractor. That's why it's important to start gaining experience early—even if it's as an apprentice or assistant.

    8. Do I need a license if I'm doing small jobs on the side?

    Check your local laws. Even small handyperson jobs may require registration or a license, especially if you're advertising services to the public. It's better to be safe (and legal) than sorry.

    9. What's the difference between a general contractor and a specialty contractor?

    A general contractor manages whole construction projects and may hire subcontractors for specific work. A specialty contractor focuses on a single trade, such as plumbing, electrical, or HVAC.

    Each may require a different type of license, so know what you're aiming for before you apply.

    10. Is it worth it to get licensed if I don't plan to start a business right away?

    Absolutely. Having your license gives you more freedom, higher pay potential, and job opportunities, whether you work for yourself or someone else. Plus, once you're licensed, you're always ready when opportunity knocks.