Home Entrepreneurs What license do you need for a construction company in Minnesota

What license do you need for a construction company in Minnesota

What license do you need for a construction company in Minnesota
What license do you need for a construction company in Minnesota

If you are considering being a contractor in the United States, take advantage of the moment, since the panorama of the industry is positive. In Hispanos Emprendedores we tell you everything about what license do you need for a construction company in Minnesota.

Industry overview

Construction is a major component in Minnesota's economy. Since 2000 it has grown 69%, for this reason it is a good bet to start a business. The state Department of Employment and Economic Development said the construction industry has remained strong despite the pandemic. These businesses have remained active thanks to the demand for construction and renovation services in single-family homes and commercial buildings, among others.

And although it has not been spared from challenges in recent years such as delays and shortages caused by rising costs for customers, they continue their projects. So 2022 has been a good year for the sector and they predict that 2023 will be too, but the challenge is to get enough personnel to carry out the works and obtain supplies such as cabinets, PVC pipe, wood, steel and copper wiring, for instance.

There is also a boom in the construction of prisons, government facilities and facilities for the elderly, not only in Minnesota, but throughout the country. Companies have chosen to work with subcontractors who have stockpiled material to meet deadlines. Others have had to design and adapt what they have at hand.

What license do you need for a construction company in Minnesota

In general, the requirements for a license to work in construction in the Minnesota area are simple. After registering the company with the secretary of state office proceed to obtain authorization depending on the type of activity you are going to carry out.  

The application must be made with the Minnesota Department of Labor and Industry through its Division of Building Codes and Licenses online or by mail. General contractors require a residential building license.

Subcontractors who do excavation, concrete, masonry, carpentry, interior and exterior finishing, drywall, and general installation also need one. As are electricians, plumbers, mechanical contractors, and roofers. The rest can exercise freely, but must register with the state through the contractor registration program.

General Contractor License in Minnesota    

In this line, companies are required to process the residential construction contractor or residential remodeler license. You must designate a qualified person to take the exam and meet the continuing education requirements. The applicant must pass the competency exam before submitting the application. application and the documents.

To make the request, register the company as we have already indicated, request the EIN if you are not a sole proprietor and establish a physical address. Also, provide the names of the owners who own more than 10% of the business. As well as the background check and take out civil liability and workers' compensation insurance and the license fee that is renewed every two years.

Electrical Contractor License

In this case, the state authorizes installation, modification, repair, planning or electrical wiring work. Likewise, electrical appliances, heat, energy, circuits or technological systems. Employees must be licensed as a journeyman electrician, master electrician, or registered with the Department of Labor and Industry as an unlicensed electrician.

To obtain it, you must appoint the person responsible for the company, it must have a master electrician license, be an owner or employee who is actively involved in the area. Have a civil liability policy with coverage of at least $100.000 per incident and $50.000 for property damage. A bond of $25.000, fill out the forms and pay a fee of $128.

Plumbing and Mechanical Contractor License

Businesses applying for a plumbing contractor license provide a bond and liability insurance. Said permit demonstrates that the contractor complied with the years of training and experience according to the activity code, materials and approved construction methods.

As in the electrical contractor license, it is essential to designate a holder who has the level of master plumber or restricted master plumber. Check individual license requirements here: https://www.dli.mn.gov/workers/plumber/licensing-personal-plumber-licenses.

You must attach a separate workers' compensation insurance policy, pass the exam, and pay the appropriate fee, $128.

Licensing for Remodeling and Roofing Contractors

In Minnesota, companies that carry out construction or remodeling in residences in more than one area are required to be licensed. Even owners who do work of this type for resale must ask for permission.

The steps to have it are: pass the exam to get a "Q number" that is used to send the application after completing all the forms. You must attach a copy of the certificate of incorporation or a screenshot of the company's data that is on the website of the Secretary of State.

As well as proof of liability and workers' compensation insurance and background checks. The qualified person designated as responsible will have to complete 14 hours of training every 2 years. For more information call 651-284-5034.

Minnesota Contractors Exam

Prelicensing evaluations to demonstrate the applicant's competency and skills are also conducted by the Minnesota Department of Labor and Industry. It has a commercial part and a law part related to the trade. The applicant will complete 110 questions in 4 hours and to pass they need a score of 70% or more, if they fail they will have to wait 30 days to reapply, the fee is $50. The department provides a study guide to prepare. You can find everything related to the exam in https://www.dli.mn.gov/business/residential-contractors/contractor-roofer-and-remodeler-exams.

Prefabricated Structures License           

The state government regulates the construction and installation of homes and manufactured buildings. Manufacturers and distributors in the industry require a license to work in compliance with the provisions of the Minnesota State Building Code. Grants dealer, limited dealer, manufacturer, and installer licenses.

Contractors need to submit the application, consign insurance certificates, formulation of qualification, verification of experience, background, etc. Investigate all the requirements in https://www.dli.mn.gov/business/manufactured-structures.

The type of license you need for a construction company in Minnesota will depend on what area you will be working in. With our advice you will be able to quickly register your business to start your activities in this competitive market. If you want to know more about other ventures visit our blog.

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