Are you a general contractor in North Carolina wondering if you need a license even if your projects are typically under $40,000? This question is more common than you might think. Here’s why getting a general contractor license can still be beneficial for your career and business growth, even if you primarily take on smaller projects.
Why Think About a General Contractor License?
When deciding whether to pursue a general contractor license, consider a few key questions. First, do you want to grow? If you’re aiming to expand your business, the $40,000 threshold may not be practical in the long run.
With inflation affecting today’s economy, $40,000 doesn’t go as far as it once did. Material and labor costs are rising, so what seems like a manageable budget can easily exceed that threshold. For example, if a project suddenly incurs unexpected costs, you might find yourself needing to move into the $40,000-plus range.
The Levels of Licensing in North Carolina
North Carolina offers several levels of general contractor licensing, from limited to unlimited. If you want to grow your business, it’s wise to obtain a general contractor license, whether it’s limited or unlimited, as each has its requirements and allows you to take on different scopes of work.
- Limited License:A limited license lets you take on projects up to a certain amount, making it ideal for those focused on smaller jobs. If you expect to take on bigger projects eventually, this can be a good starting point.
- Intermediate and Unlimited Licenses:As your business expands, you may want to pursue an intermediate or unlimited license, allowing for greater flexibility in the projects you can accept. This becomes crucial if you plan to take on larger projects that go beyond the $40,000 threshold.
Adjusting to Changes in Your Business
The construction industry often changes quickly. A project estimated to be under $40,000 can sometimes end up needing additional work or materials, pushing it over that limit. Holding a general contractor license gives you the ability to handle these situations smoothly and avoid any legal issues.
If you’re mostly doing smaller jobs, you might become comfortable in that space. But as you gain experience, you could start receiving offers for bigger projects. Without a license, you’d have to turn down these opportunities, limiting your potential for growth.
Growth Opportunities
A general contractor license opens doors to new possibilities. You can expand your services to include full remodels, kitchen renovations, or larger exterior projects. As you build a reliable crew and gain confidence, you’ll be better equipped to take on more challenging projects that require a license.
If you’re working with realtors or other industry professionals, you may come across new projects that exceed your current limits. A license lets you take advantage of these opportunities without hesitation.
Long-Term Commitment to Your Profession
Another key question to ask yourself is whether you see yourself in the contracting business for the long haul. If you’re serious about building a career in this field and want a solid reputation for quality work, a general contractor license is a smart investment.
Having a license not only formalizes your business but also shows your commitment to meeting industry standards and regulations. This can boost your credibility and help attract clients who want reliable contractors.
North State Law’s Additional Services and Support
As general contracting continues to grow, firms like North State Law now offer services to help with the application process for obtaining a general contractor licenseand business formations for general contractors. This can be helpful for those who want an easier experience navigating the licensing process.
If you have questions or need guidance, consider reaching out to our firm for a consultation. We offer free discovery calls to help you understand the benefits of obtaining a license.
Conclusion
While you may primarily work on projects under $40,000, getting a general contractor license in North Carolina is a strategic move that can benefit your business in many ways. From supporting your growth and allowing you to adapt to project changes, to boosting your professional credibility, the advantages are clear.
As the construction industry keeps changing, think about your long-term goals and the potential for growth. A general contractor license can be a stepping stone toward a successful and rewarding career in construction.
*Nothing in this blog establishes an attorney-client relationship. Nothing in this blog is legal advice. If you have any questions, please check out our other blogs and our Youtube channel. You can also call us at 919-521-8810 with questions.