When your Tennessee small business ventures into residential or commercial construction, you will need to get licensed from the state. To renovate homes, do some small demolition work, construct free-standing buildings on your property, or do any contracting work in other people’s homes (up to $20,000), you must have a residential small commercial license issued by the Tennessee Department of Commerce and Insurance. The small commercial license you get is not valid for large-scale residential or commercial construction. It only allows businesses to perform minor jobs such as roofing repair, fascia replacement, fencing installation, gutter cleaning and replacement, and driveway sealing.
To become licensed, you must also take an examination before the Tennessee Department of Commerce and Insurance Department. It’s important to note that the examination is not a test of your contracting ability but rather a way to ensure that you understand the business and legal aspects of running a contracting business in the state of Tennessee. The examination covers topics such as workers’ compensation, insurance, Tennessee consumer protection laws, and other business practices.
Once you’ve passed the examination and paid the licensing fee, you will receive your Tennessee residential small commercial license, which must be renewed every two years. The license is not transferable to another person or business, so if you sell your business, the new owner will need to obtain their license.
Getting a residential small commercial license is a simple process that will protect you and your business when performing contracting work in Tennessee. It’s an important part of being a responsible and professional contractor, and it will give your customers peace of mind knowing that you’re licensed and qualified to do the work you’re contracted to do.
Reasons Why You Need A Tennessee Small Commercial License
- To allow a contractor to perform minor interior home repair, exterior construction, and veneer applications, you must first get licensed from the State of Tennessee. Without a residential, small commercial license issued by this state, a contractor cannot legally work on homes or any other buildings in the state.
- Most contractors are not qualified to do certain types of construction work. So, if you hire one to do your renovation, repair, or construction project, you will have to pay him more because he can only do what he knows how to do. If the state does not license that person, he is merely a glorified handyman. He can only perform basic repairs on your home and is not capable of performing many other tasks because of his limited knowledge and skills.
- Tennessee homeowners benefit from licensing because it increases their legal protection. When you hire a contractor licensed by the state, you can take legal action against the company if something goes wrong. You need not worry about whether a contractor is licensed or not because the state will not issue him a license if he does not meet its requirements.
- A residential, small commercial license allows contractors to perform minor tasks such as sealing driveways, installing fences and gutters, and installing fascia boards on roofs. This license is not for major construction projects. So, before hiring a contractor for your house, ensure he has the credentials to do so.
- One of the advantages of hiring a licensed contractor is that he can get discounts on building materials, tools, and equipment. He also has access to insurance coverage and bonding schemes which unlicensed contractors cannot take advantage of.
- Only licensed Tennessee contractors are eligible for Home Builders Association of Greater Memphis membership. Over 20,000 construction firms across the nation are members of this association because they show customers that they are experienced and well-trained in home building and improvement work.
- It is illegal to do any construction job or repair without a contractor’s license. An unlicensed contractor can be fined or jailed if he violates state laws regarding building businesses.
- Most importantly, homeowners who wish to avail themselves of the state’s consumer protection laws must ensure that they only hire licensed contractors. The State of Tennessee’s Division of Consumer Affairs will not hesitate to take legal action against unlicensed contractors who violate these laws.
If you plan to have a contractor do some home repair work, you will need to get a Tennessee real estate license. There are many benefits to having this license, including increased legal protection, access to insurance and bonding schemes, and the ability to get discounts on building materials, tools, and equipment.