Getting your New York City Home Improvement contractor license is very straightforward. Compared to many city and state contractor license processes, this is not difficult. The key is to be thorough and have all of the correct information and documents or your application will be denied.
This article will cover:
- The 10 steps and requirements to get your license
- A detailed explanation of the key steps
- The over all cost of getting your license
- Helpful links to make going through the process easier
The 10 Steps And Requirements To Get Your New Your City Home Improvement Contractor License
Here are the steps at a high level:
- Step 1: Complete the base license application
- Step 2: Provide sales tax identification number or application confirmation number
- Step 3: Prove business address
- Step 4: Prove home address or addresses
- Step 5: Prove workers compensation insurance
- Step 6: EPA certification or signed affirmation (not always required)
- Step 7: Join trust fund or purchase a surety bond
- Step 8: Contractual compliance agreement
- Step 9: Pass home improvement exam
- Step 10: Provide fingerprints
Step 1: Complete The Base License Application
This is a short application and requires you to:
- Fill out your business name and information
- Sole proprietor or general partner information if applicable
- Listing of any corporate officers, LLC members, and company shareholders who own more than 10% of company stock
- All applicants background information for all individuals listed on the application
Depending on your situation:
- Make sure your business name matches exactly the name registered with the New York Secretary of State
- This name will also have to match exactly the business name printed on the required surety bond
- If you're a sole proprietor your full legal name must be used and like a business name this must remain consistent through all required paperwork
Step 2: Sales Tax Identification Number Or Application Confirmation Number
As a home improvement contractor, you're responsible for paying the appropriate sales tax. To pay sales tax in New York, you have to apply for a Certificate of Authority. This allows you to collect sales tax which you then pay on a individual project basis to the Department of Revenue.
Step 3: Proof Of Business Address
To prove the business address is occupied by your business you must provide one of the following documents that includes the name of the business or an individual listed on the main license application.
- Utility bill that is dated within the last 90 days
- Copy of the current lease or deed to the property
- Current rent receipt or mortgage statement
- Insurance document or bill
- Correspondence from any government agency
- Current active license, permit, or certification issued by a city, state, or federal government agency
Remember you only need one of these.
Step 4: Proof of Home Address
Every individual listed the license application must show proof of the home address listed on the application. Similar to the business address, one of the following is accepted by the New York Consumer and Worker Protection Department:
- Utility bill that is dated within the last 90 days
- Copy of current lease or deed to the property
- Insurance document or bill
- Current active license, permit, or certification issued by a city, state, or federal government agency
- College or school correspondence
- Current rent statement or mortgage statement
- Drivers license
- Municipal ID card
If any of the individuals listed on the license application live at another person's address, these are the options:
- Any of the above statements or documents that list both the leaseholder's or homeowner's name
- A letter signed by the homeowner or leaseholder stating that the individual lives at the address
Step 5: Workers Compensation Insurance
An active workers compensation insurance policy is required before you can submit your license. Proof of the insurance policy can be supplied by:
- An insurance certificate from a private insurance carrier or the New York State Insurance Fund office
- A certificate of Attestation of Exemption from the New York Sate Workers Compensation Board if claiming exemption
The insurance certificate must have the name of the Department of Consumer and Worker Protection as the certificate holder and include their address.
To claim exemption from the workers compensation insurance requirement, only two entities qualify:
- Entities with no employees
- Out of state entities obtaining a contract or license where all the work is performed outside of New York State
Step 6: Proof of EPA Certification and/or Signed Affirmation
This step depends on the type of work your business is going to conduct. For example, contractors who maintain, service, repair, or dispose of equipment that could release refrigerants into the atmosphere must be certified.
- Submit copies of EPA Renovation, Repair, and Painting certification (RRP certification)
- EPA Lead Based Paint Activities certification
Or...
- Copy of either EPA RRP certification or EPA Lead Abatement certification
- Signed Home Improvement Contractor Affirmation indicating the signed EPA certification is not required for any home improvement work
Or only...
- Signed Home Improvement Contractor Affirmation indicating the signed EPA certification is not required for any home improvement work
Step 7: Home Improvement Contractor Bond or Trust Fund Participation
This requirement is similar to an insurance policy with one key difference, who the required $20,000 of coverage is for.
Unlike insurance the contractor is required to join the trust fund or purchase a surety bond for the protection of their customers and the state of New York in the case of purposefully:
- Not completing contracted work
- Performing poor quality work that is not compliant with building codes
- Not paying subcontractors
- Mishandling customer deposits
- Not paying or collecting appropriate sales tax on applicable projects
In any of these cases the customer or the state can make a claim up to the $20,000 bond for damages.
Purchase a NYC Home Improvement Contractor Bond
As explained above, a surety bond is purchased to protect your customers. And cost of the NYC home improvement contractor bond requires a quote from a surety. The surety is an insurance company that writes surety bonds.
Surety Bonds Direct works with multiple sureties, specializing in contractor bonds, and can obtain the lowest possible price. The rate is based on the personal credit of the sole proprietor or the primary owner of the contractor business.
- Low rates are about 0.5% making the cost $100
- An average rate is about 1% making the cost $200
Purchasing a home improvement bond has two major benefits:
- Securing a lower cost
- Having the surety behind you
If a claim is made against your bond, the surety will conduct a detailed investigation to ensure the claim is legitimate. The surety does not want to pay on a claim unless it's 100% warranted.
Discover your exact cost by getting a free, no obligation quote from Surety Bonds Direct for your NYC home improvement contractor bond. It typically takes only a few hours to obtain your rate and cost.
The Department of Consumer and Worker Protection Trust Fund
It costs $200 to join the trust fund. Every year on the renewal of the home improvement license, an additional $200 is required. This amount can be raised without notice if the deposits in the fund go below determined thresholds.
It's up to the fund to investigate any claim.
Step 8: Contractual Compliance Agreement
This is a short form proving agreement to follow the Laws and Rules of New York City including:
- Having read the Contractual Compliance Checklist
- Reviews the Home Improvement Estimate and Find Contract
- Using non-conforming contracts or falsifying and statements can result in a fine or prison.
Step 9: Home Improvement License Exam
All listed individuals on the main license application must take the Home Improvement exam. There is a $51 exam fee per individual.
In order to register and schedule the exam, the application must be submitted first with all necessary paperwork and fees paid, including the required home improvement contractor surety bond.
Once the Department of Consumer and Worker Protection approves the application, the name of the business of sole proprietor will appear in the ExamBuilder's system within 24 hours. You have 60 days to take and pass the exams from the moment your name appears in the system.
The exam has 30 questions with 21 correct answers required to pass the exam. If the exam is failed, you can try two additional times before you have to pay the $51 exam fee again.
Step 10: Fingerprints and Processing Fee
All individuals listed on the main license application must schedule an appointment with IdentiGo for fingerprints.
After you pass your exam and provide fingerprints, the Department of Consumer and Worker Protection will issue your official license.
The license has a period of 2 years with an expiration date on February 28th on odd years. Here's how the license fee is prorated based on when you submit the final application.
| Date You File Your Application | License Fee Option 1 | License Fee Option 2 |
|---|---|---|
| From March 1 in an odd year to August 31 in an odd year | Pay $100 for a license expiring February 28 fo the next odd year. (Valid for at most 24 months.) | N/A |
| From September 1 in an odd year to February 28 or 29 in an even year | Pay $75 for a license expiring February 28 of the soonest odd year. (Valid for at most 18 months.) | N/A |
| From March 1 in even year to August 31 in an even year | Pay $50 for a license expiring February 28 of the soonest odd year. (Valid for at most 18 months.) | N/A |
| From September 1 in an even year to February 28 in an odd year | Pay $25 for a license expiring February 28 of the soonest odd year. (Valid for at most 6 months.) | Pay $125 for a license expiring February 28 of the next odd year. (Valid for at most 30 months.) |
Surety Bonds Direct Will Help You Get Your NYC Home Improvement Contractor Bond Fast
The New York City Department of Consumer and Worker Protection provides this page with the steps and links to every required PDF document.
When you need your contractor bond, Surety Bonds Direct will help you purchase your surety bond fast and at the lowest possible price. Make sure you go through our quoting process and discover your actual cost so you can make the right decision.
It take 90 seconds to fill out our online quote request form. If you would prefer to talk to a bond specialist, call 1-800-608-9950.
