Delaware Contractor License

Delaware Contractor License

Depending on the type of work you do, you may be required to obtain a license or register your business.

General contractors in Delaware are not needed to hold a state-issued license, but they must register their company with the Division of Revenue. There are two sorts of registrations: resident and non-resident registrations.

How to get a Delaware contractor license?

The Division of Revenue provides a Combined Registration Application to make the registration process as simple as possible. While both registration packages come in one packet, they contain at least 35 sheets that cover everything from basic business registration to construction-specific documents and procedures.

Much of the information in both the resident and non-resident packets is repetitive, and the registration requirements are simple. You'll need to comply with worker's compensation and unemployment insurance regulations, as well as provide identifying information about your company's structure. You'll also be required to supply tax information in order for the state to track your earnings.

Non-residents, on the other hand, must jump through a few more hoops.

You'll still need to register your business as a non-resident, but you'll also need to get a surety bond. A bond with a value of 6% of the total project cost is required.

Non-residents who complete contracts worth less than $20,000 in total annually must still register, however, this form will take the place of the bond.

The fees for both license categories are $75, although they are prorated during the first year of application, and licenses expire every year.

To know more about how to get a contractor license in Delaware, check out Licensesearch’s article.

Municipal regulations for a contractor license in Delaware

Many of Delaware's local governments have their own licensing standards that contractors must adhere to. Some even have requirements for general contractors.

Dover

Dover may be Delaware's largest city by population, but the license requirements are quite lax. Dover only needs contractors to apply for a business license with the city, in addition to the state's regulations. Contractors will be charged a minimum of $125 for aggregate receipts or a rate of $00.00046. A company with $2 million in yearly income, for example, would be required to pay $920.

Wilmington

Wilmington prefers to register contractors rather than license them, and it makes the process pretty simple. This application for a construction business license will be filled out by business license applicants, including:

• Installation of a boiler,
• Air conditioning,
• Construction supervision,
• Cement/concrete,
• Contractor for heating and cooling,
• Electrician/electrical contractor,
• Contractors in the mechanical field,
• Contractor/subcontractor,
• Contractor in plumbing,
• Refrigeration,
• Installer of satellite television,
• Contractor for asbestos removal.

All trades have a $120 application charge, except for satellite television installation, which is $301.

Middletown

Construction companies working within the city borders in Middletown must obtain a business license. While the website implies that rates vary, this application specifies that contractors must pay $125 in order to be licensed.

Newark

A business license is necessary for enterprises operating in Newark, according to the city's website. The fees are calculated based on "the demand and expense for municipal services connected to commercial activity in the city," according to the city's estimations.

Penalties for contracting without a license

While the registration packets are lengthy and contain a lot of information, applying for registration with the Division of Revenue is a simple process. Delaware sees no reason why a contractor would refuse to register because it is so simple. The fees they charge are substantial.

Contractors who fail to meet the state's license standards face civil penalties of up to $10,000. Individual municipalities can impose fees as well, though they are usually considerably less harsh.