�Washington contractors need to be licensed by the state, and that requires getting a surety bond. Keep reading to learn more about the process.
Getting a Washington contractor license
Washington contractors are licensed through the Department of Labor & Industries (L&I). Licensees register as general or specialty contractors—specialities include concrete, flooring, landscaping, and masonry. If your business is not a sole proprietorship or general partnership, it needs to be registered with the Secretary of State. You’ll also need a Uniform Business Identifier number from the Department of Revenue’s Business Licensing Service and an IRS Employer ID number (if you will have employees).
The application for Washington contractors asks for information that includes:
- Business name and phone number
- Physical and mailing addresses
- Indicate whether or not you, your spouse, or any business owners have ever been registered as a contractor
- Specialty code (if applicable)
- Applicant’s legal name, social security number, address, and driver’s license number
- $12,000 or $6,000 surety bond
- $250,000 in general liability insurance coverage
- Registration fee
General contractors need the $12,000 bond, while specialty contractors need the $6,000 bond. The insurance coverage can be one policy, or it can be $200,000 in public liability coverage and $50,000 in property damage coverage.�The application must be notarized upon completion, and L&I recommends delivering it in person to your closest L&I office. If you need to mail your application, send it to L&I at:
Department of Labor & Industries Contractor Registration Section PO Box 44450 Olympia, WA 98504-4450
Washington contractors’ licenses are valid for two years, and can be renewed online, by mail, or at an L&I office.
Why do contractors need this bond?
Contractors in Washington are required to get a surety bond by the Revised Code of Washington Chapter 18.27. The bond is a promise to the state and to customers that the licensee will adhere to all the provisions of that law. The bond is also a promise that the contractor will pay employees and suppliers and pay taxes as the law requires. Read the full terms of the bond and RCW Chapter 18.27 to be sure you understand the scope of your responsibilities as a licensee.
These bonds are underwritten, so their premium depends on a review of their credit history. Applicants should expect to pay anywhere from 1-10% of the bond’s full amount. For general contractors, that means a premium could be $120-$1,200, and specialty contractors’ premiums could range from $60-$600.