tn contractors license renewal application

Contractors who are not currently working, may place the license in"Retirement"in lieu of renewing, to retain renewal rights (renewal rights expire after 12 months). You may check the status of the license issuance at:License Search. Revision requests for Board approval include: Add Classifications; Increase Monetary Limit; Change Mode of Operation; and Name Changes. NOTE: If you currently are licensed with a Tennessee Contractor's License and wish to make changes to your existing license, see the "Revision" information in "Section 3". The "Online Renewal" process is the quickest and most convenient way to renew. Therefore, it may be a sole proprietor, corporation, partnership, or LLC. If fee is submitted prior to the expiration, your renewal status will remain active, however, you cannot contract or perform work where a license is required, until the expiration date is updated showing the license was approved and issued. There is a grace period of 7 days after your license expires to have your renewal application postmarked. (At renewal time, the Guaranty Agreement or Bond may be removed by making a request to the Board and providing an updated financial statement meeting the requirements, to replace it.). Are you renewing your license? The renewal form is available online for anyone needing a financial balance sheet at:https://tn.gov/commerce/documents/regboards/contractors/forms/ContractorsRenewalWeb.pdf The financial statement may be self-prepared by the contractor and is not required to be prepared by a licensed CPA when their monetary limit is $3,000,000 or less. SpecialAccommodations Submit the non-refundable $250 application fee for a two-year . License Renewal is ONLY for license types that are already in the new Accela system. Please allow 5 to 7 days for mail delivery when submitting prior to the deadline date. Please note, the exam center offers special accommodations for those with disabilities, or for those wanting to take a Tennessee exam in another state. Contractor's License Application Package Apply Online at: https://core.tn.gov/ Online Application Forms Resource [pdf] Exam Information - PSI Candidate Information Bulletin (Registration, Locations, Study Materials, Rules for Testing, etc.) Residential, commercial and industrial building, take the BC exam. The law requires a Reviewed or Audited financial statement which must be prepared by a licensed independent accounting firm. The Secretary of States office may be contacted at (615) 741-2286 or visit theirwebsite. Clickhere to view a video demonstration on how to renew license online(after your account has been created). If you have complaints, convictions or have bid where a license is required, you will be required to interview with the Board. Exemption Registry for Workers' Compensation as a "Construction Services Provider" requires registration with another section of the Secretary of State's office. All licenses must be renewed every two years. Cash only statements must include a Guaranty Agreement with a supplemental financial statement, as well as those with the majority of capital listed as uncollected accounts receivables. Section 62-6-112 and Rule 0680-1-.16 of the Tennessee law for a complete listing, or review in the application; and also a "Classification Outline"is on the website's "Other Resources"). Whenever there has been a majority change of ownership, a new license application must be completed in lieu of renewing. Upon receipt of the increase request, it will be presented to the next regularly scheduled Board meeting; no interview is required for revision requests. Board Rules and Regulations . The law requires renewals to be submitted to the Board30 days prior to the expiration datein order to prevent working on an expired license, which is considered a violation of law. **Fire Sprinkler contractors must also obtain licenses with theDivision of Fire Protection, as a Firm and RME (Registered Managing Employee). Deadline Date for License Revision Requests: Last day of the month prior to the next Board meeting (requests requiring Board approval). CURRENT LIABILITIESare obligations whose liquidation is reasonably expected to require (a) the use of current assets or (b) the creation of the other current liabilities. All contractors licenses are assigned a monetary limit and also a classification, such as: Building (Residential, Commercial and Industrial); Electrical; Mechanical (Plumbing and HVAC); Heavy Construction; Highway, Railroad & Airport; Masonry; Municipal Utility; Environmental; and Specialties (landscaping, excavation, roofing, cell towers, solar panels, audio visual, etc.,). Board Approval required for the following revisions:Adding a Classification; Increase Monetary Limit; Name Change; and Mode of Operation Change (transfers). Contractor's must bid/contract in the exact name as licensed. File a Complaint . This requires that you list your license ID # and the corresponding expiration date. For example, an electrical contractor is typically interviewed by a Board member experienced in the electrical field. DBA (Doing Business As) If you have moved, state mail is not forwarded. Your fee will be attached to your application and submitted to: Tennessee Board for Licensing Contractors 500 James Robertson Parkway Nashville, TN 37243 Limited Partnerships must register with the Secretary of State. Exam Prep Courses International guidelines are available at: Renewal does not require a Review and an in-house statement may be provided, Renewal does not require an Audit; may supply a Review or Audit from a CPA, Financial statements prepared on an income basis are. You maydownload the renewalfrom the"Forms and Downloads". At renewal time, your status must be "Active" in order to renew. (See also the examples listed below under the "Summary"). *ABondin the Board's format may be suppliedin lieu of the Guaranty Agreement, in the amount of $500,000; or $1,000,000 for an Unlimited monetary limits. The application for a certificate of renewal must be submitted to the Secretary of State on or before March 1 of each year. For masonry less than $100,000, the BC-9 is acceptable for a prime. Check with the local government to see if accepted. *Note: Alarm System licensees are exempt from obtaining an additional license as a contractor, pursuant T.C.A. The contractor's license is issued in the legal name and mode of operation exactly as on the financial statement. A contract or permit valuation cannot exceed the monetary limit assigned to the license, which includes contractors cost of land and profit; there is not a 10% monetary limit tolerance; and not allowed to joint venture. For an LLE license application, call our office at (615) 253-2144 or download from the. In order to renew your residential contractor license without issue, you will need to complete your RCE before submitting your license renewal application. Limited Liability Companies (LLC) must submit a copy of their Articles of Organization, and proof showing they have registered/filed with Tennessee Secretary of State, including out of state entities. Solar Panel - Must state you will hire an electrical subcontractor or an electrical trade exam will be required. Therefore, some contractors will be seen earlier. See"Forms and Downloads"if additional resources are needed to complete the renewal or see ourFAQ's. Those who are obtaining a restricted residential (BC-A/r) must interview; those with not enough experience provided on the application (3 years); those with felony convictions; and those with complaints are also not waived. You may download the renewal from the "Forms and Downloads". For questions concerning your renewal or to send missing documents, the Board's renewal section may be contacted by email at:Contractor.Renewal@tn.gov. Note: If you have been disciplined or convicted of a felony, the Board will not accept. (The reference does not have to come from a Tennessee resident. Masonry- Licensed Masonry Contractor (LMC) exam is required to perform masonry where the total project, including materials and labor, is $100,000 or more. The issuance of a certificate of responsibility or residential license by reciprocity to a military-trained applicant or military family member shall be subject to the provisions of Miss. After completing the online renewal questions and paying the fee, you will have the opportunity toattachthe required supporting documents as follows: Clickhere to view a video demonstration on how to create an account. Parent company may supply the Audited financial statement for a subsidiary obtaining the license, but must provide an indemnity, such as a Guaranty Agreement or Bond. If the 20th is on a holiday or weekend, the next business day is considered the deadline. At the "License Search", the license status will show "Active" with an expiration date; classification; an the monetary limit assigned to the license. See the"Contractor Classification Outline" to review all of the various types of contractors regulated. Returning User. Deadline Date for License Revision Requests: Renewal Process:Board office conducts an audit, which includes: 1) checking the financial statement to ensure the working capital and net worth supports the current monetary limit; 2) checking for proof of insurance and making sure coverage includes Tennessee; 3) Corporate status is confirmed; and 4) check to see that the "Contractor's Affidavit" was completed, signed and notarized. What contractor license exams are required? Fire Prevention / State Fire Marshal's Office, Tennessee Law Enforcement Training Academy, Peace Officer Standards Training Commission, Fire Services & Codes Enforcement Academy, Contractors Renewal Retirement and Revisions. in lieu of sending by mail. Please allow 5 to 7 business days for mail delivery. There are two types of exams: The Tennessee"Business and Law"exam is required byallcontractor license applicants. You are breaking the law if you do. All blocks must be checked. Personal Guarantor - Guaranty Agreement must include a personal financial statement from the owner(s) and is not required to be an audit or review; may self prepare personal supplemental financial statements with the entity's Review or Audit. Please allow an additional 5 to 7 days for mailing any revision requests. Please allow 5 to 7 business days for mail delivery. Currently, only the Increase Monetary Limit and Transfer-Change Mode of Operation applications are available online. Exam Guidelines and Security Procedures for Books You may check status of your pending application from the License Search at our website:https://verify.tn.gov/. For example, a contractor with a net worth of $50,000 is wanting a license for $1,000,000, which requires a net worth of $100,000. This exam is open book and you may obtain the "NASCLA Contractors Guide to Business, Law and Project Management" manual from one of the bookstores listed above or most professional book stores online. In addition, there is not a limit on the amount of single projects ongoing. Due to changing laws, please review our website for updates. This restricted license does NOT allow exceeding the monetary limit; there is not a 10% tolerance; cannot joint venture with other contractors to combine monetary limits; and cannot split contracts into phases to circumvent the law. 62-6-135). The application form can also be obtained from the Business Tax Department in the Office of the Rutherford County Clerk. PSI uses your social security number to register for the exams for identity purposesand you are required to provide a photo-ID. For example, if a residential contractor is building a house for a consumer, on their land, the land would not be part of the contract. To renew your license, here are the steps you'll need to follow: Log in (or create an account) at core.tn.gov. A contractor with a $200,000 limit may construct as many of these homes as long as each one does not exceed the limit. Certificate of Insurance for General Liability; Workers Compensation Information (Certificate of Insurance, or Construction Service Provider exemption, unless claiming the Handyman exemption); and. This information is available on the"Forms Downloads"section on the web. State . Such as, change the mode of operation; increase their licensed monetary limit; add a classification; add or remove their Qualifying Agent; or may retire the license if they are not working and want to cancel insurance. Be sure the affidavit is signed and notarized by all applicable individuals (qualifying agent, owner(s), partners, members, main officers and major stockholders). Chosen by leading organizations Secure test delivery (Water Well Drillers must be certified with the Department of Environment and Conservation and may be contacted at 800-523-4873.) The mission of the Board for Licensing Contractors is to assure quality and fair construction practices exist in all phases of the industry in order to protect the safety and welfare of the public. https://core.tn.gov. The Board requires the financial statement to be current (less than 12 months), and according to Generally Accepted Accounting Principles (GAAP). Audio and low voltage equipment - No trade exam; specialty license or CE-D. A contractor may obtain a limited residential restricted (BC-A/r) contractor's license, up to $125,000 without passing license exams, by taking a course approved by the Board with one of the following state community colleges listed below. An indemnity, such as a Guaranty Agreement or Bond is required from the owner(s) (personal or parent) of the entity applying for the license whenever the financial statement provided shows a deficiency, such as: IS FINANCIAL STATEMENT INFORMATION CONSIDERED PUBLIC RECORD? These four (4) types of license revision requests must be approved by the Board at their regularly scheduledmeetings. There is not a 10% tolerance for the BC-A/r restricted residential licensees. Municipal Utility (MU)such as: Underground Piping (MU-A); Grading and Drainage (MU-C); Gas Distribution and Transmission Lines (MU-A,1). To obtain a license to only perform projects less than $25,000, check with the local government office to obtain their license. In addition, the contractor should only operate in the name as licensed. Prepaid expenses such as insurance, interest, rents, taxes, etc. Apply for your business license online at http://www.tncountyclerk.com. Counties may adopt the Home Improvement License Requirement! Out-of State corporations must register as a foreign corporation and submit a copy of their Charter, along with a copy of their Certificate of Authority showing they have registered their charter (we may accept a copy of their application stamped "FILED" from the Tennessee Secretary of State's office in order to meet the 20th deadline). In addition, there is no limit of the number of projects a contractor may perform, as long as a project has not been split into phases to circumvent the law. FAQs . What if the QA leaves? Staff must receive in the Board office prior to the deadline date (last day of the month prior to the Board meeting) in order to have in time to process (review, audit, copy for members, add to meeting books, etc.). A list of classifications may be reviewed from the web at:"Classification Outlines"or review an outline of license classifications, which is from the published Rules with the Tennessee Secretary of State, Section 0680-1-16. %%EOF Subscribe for Board Updates . Registering for the Exam No annual tax return is required. CURRENT ASSETSare cash and those assets that are reasonably expected to be realized in cash or sold or consumed within one year or within a businesss normal operating cycle if it is longer. . If your entity is in a name with a "DBA", this will need to be included on the certificate obtained from the Secretary of State and on the financial statement, exactly as on the form. New Application License Renewal Collect Documents Gather all the documents you need to complete the application. When reinstating a contractors license, you may apply for this new reinstated license with a name change, change in mode of operation, license limit or classification. All other licensing requirements, with the exception of the exams, must be met, which includes a reviewed financial statement prepared by a CPA; proof of insurance; list of experience; and a reference from a past client, employer or codes official. For licensing information for projects less than $25,000, see Types of Licenses. NAME ON LICENSE The QA may be an owner, officer, or full time employee (the QA does not own the license; license is issued to the entity providing the financial statement, insurance, etc. Build homes and commercial projects, (such as a doctors office, less than $750,000), need the BC-A and BC- b(sm) exams OR may take the combined BC-A,b(sm). Business and Law exam is NOT required to be retaken, BC-A/r (Restricted Limited License) expired licensees must retake the course, The original Qualifying Agent (QA) is still with the company. Renewals are due30 days prior to expirationto prevent contracting while unlicensed. Section 1. Seminar Price: $495.00. Online Exam Registration with PSI, Bookstores(Code Books and Reference Manuals for Exams). However, there is not a grace period under which you may perform any work as a contractor without a license. Comprehensive Online Regulatory & Enforcement System. Contractor's License Renewal . Contractors with a "Retirement" status are considered "Inactive" and not licensed to perform work in an amount where a license is required; Bookstores(Code Books and Reference Manuals for Exams). Net worth is total assets minus total liabilities. You may request your license I.D. For those not responding within 12 months of the expiration date, the renewal form is placed in archives for storage. Individual First Time Application or Applying for Another License Discipline If Board meets in January, the deadline would be December 31st. The LOC is an option available for those requesting a larger limit than one in which their financial statement qualifies. Low Voltage (less than 70 volts): Sound, Intercom, Fire Detection; Telephone Lines (CE-F); and Cabling (CE-G); or *Alarm Systems (CE-D) - No exam with our Board for a low voltage CE-D; however, must obtain license with the "Alarm Systems Contractors Licensing Board" for their separate licensing and examination requirements. Here's how a contractor can get their license reinstated: Complete the "Contractor's License Application.". Effective April 28, 2017, Public Chapter 237 changed the financial statement requirements for contractor licensing. Deadline:Contractor's license applications must be received by the Board office prior to the deadline date which is the20th of the month prior, to the Board meeting. NOTICE! In addition, only silent, non-programmable calculators may be used when taking the exam. Please include the completed reference with your application. ), Prepayments or deferred charges that will not be charged to operations within one year, *Notes receivables from stockholders/related parties, Line of Credit balances and credit card balances, Amounts collected before goods or services are delivered (over billings on jobs in progress), Accruals for wages, salaries, commissions, rents, royalties, and taxes, Other obligations, including portions of long-term obligations, that are expected to be liquidated within one year*, CPA (Certified Public Accountant) and Licensed Public Accountant - Information. Contractor licenses are issued according to the legalNAMEappearing on thefinancial statementand the name should match on ALL related information required in the new license application, such as the corporate Charter, Articles of Organization, Reference, Contractors Affidavit, Line of Credit, etc. Attach an explanation where applicable. The financial statement portion of the application is not public information and considered confidential (may be released only by a Subpoena with an Order of Protection). 73-50-1. In lieu of taking the "BC-A" residential trade exam and "Business & Law" exam, residential contractors wanting to perform work where the cost is less than $125,000 (based upon financial statement), may take a "Limited License" course with a Tennessee community college or vocational school. One must be a valid form of government issued identification(driver's license, state ID, passport) which bears your signature and pre-prited legal name. Please take in consideration of experience and whether the majority is uncollected receivables. In order for Contractors to retain renewal rights, they must respond in writing with the required information within 12 months of expiration date or place license in "Retirement". TENNESSEE SECRETARY OF STATE Staff must receive within a reasonable time prior to the Board meeting to have in time to process (review, audit, copy for members, add to meeting books, etc.). Generally, current assets include the following: Note: The Board doesnotconsider notes receivables from related parties as a current asset. Once completed, the form provides the information necessary to create a record of your business; classify the business; and issue a license. WHAT TYPE OF FINANCIAL STATEMENT IS REQUIRED? thZX*CE$b'6s e+F``l "@N@Bo#VbU]x9$>p'D@{?4-T]6jeX0ZP K_ Contact: 800-952-0910, McMinnville TCAT (Tennessee College of Applied Technology Well Drillersneed to be certified with theDepartment of Environment and Conservation. Contact: 931-473-5587, Limited Licensed Electrician(LLE)Projects less than $25,000, Limited License Plumber(LLP)Projects less than $25,000, Home Improvement LicenseProjects $3,000 to $24,999. A"Trade"exam may also be required, depending on the type of license classification requested (see"Contractor Classifications Outline"). License has not been expired more than 24 months; If it has been more than 24 months, as long as the QA has been active in the industry by working for another contractor, as a subcontractor or in another state, may request to be waived by providing evidence of recent experience. Doing so is a violation of law. Therefore, a limited licensee cannot perform projects larger than the monetary limit placed on their license. More information is available on the"Reciprocation"section on our website. It requires scanning and attaching your supporting documents (financial statement, certificate of insurance, etc.) Expiration date of 10/31/2013 would not owe a late fee as long as the renewal was received (not postmarked) by November 7th. Some files are Adobe Reader Files [pdf], 6.0 or higher. (Rule 0680-1-.02) Those who cannot make the deadline or need the license prior to the next Board meeting, may provide a"Hardship"request if it meets the criteria as a hardship to an owner/consumer. STEP 1 - TESTING: Contact testing center to schedule exam (s) STEP 2 - FINANCIAL STATEMENT: Contact a Licensed CPA/PA (Licensed Certified Public Accountant or Public Account) STEP 3 - LETTER OF REFERENCE. You may also call PSI (800-733-9267), however, online is found to be quicker. Types of Contractors (Prime, Subcontractors and Construction Managers) Some applicants may be required to take atradeexam (see list of trade exams below). The license is issued for two years. Books may be shipped for overnight delivery. Please ask your CPA/LPA to assist you with determining the amount of your working capital and net worth to ensure you qualify for the limit requested. ), Fire Protection/Sprinkler contractors must pass the contractor's CMC-D exam. Do NOT exceed the monetary limit on license prior to obtaining approval and a revised license by the Board. Pre-License Exam Course Provider applications are also approved by the Board. In addition, the financial statement may be examined by the Comptroller of the Treasury or their designee. LICENSE REVISION REQUESTS(Most Require Board Review - Deadline date to provide to the Board office is the last day of the month prior to the next Board meeting), OTHER - LICENSE CHANGES/UPDATES - SUPPLEMENTAL FORMS & INFORMATION. Inventories (to include materials and/or houses built for sale). - "OneStop Resource", Duplicate License Certificate - Request Form, FEIN / EIN - Federal Employer Identification Number, Workers' Comp Exemption Registry as Construction Services Provider, Section 2. Example: A contractor with classification "S-Food Service Equipment" would be required to hire a licensed mechanical contractor to perform refrigeration portions in excess of $25,000. A contractor may place their active license into retirement, anytime after renewing the license (such as, due to canceling insurance while not working) or prior to the license expiring; If the contractor's license has expired (less than 12 months), they may retire by submitting the renewal and lates fees; plus the retirement fee. A Contractor or Qualifying Agent who has taken the exam and not been inactive more than two years, is typically not required to retest when obtaining an additional license (Note: must have majority ownership to be listed on more than one license). To obtain an unlimited monetary limit on a license, the contractor must show $300,000 in both, working capital and net worth, as well as experience, with anauditedfinancial statement. You may check your expiration date online at:License Search and Verification. No. %PDF-1.5 % Effective September 25, 2012, the Board considers indemnities as part of the financial statement. "Contractors" and "Home Improvement" are the only license applicants requiring Board approval, unless, there have been complaints, felony convictions; or reinstatements of LLE or LLP to waive the exam. Expiration of indemnities occurs at renewal time (no more than 2 years). 976 0 obj <>/Filter/FlateDecode/ID[<6CA911D0BC6E324D9FC5B595A1792774><4CB46F353E53A54FBD6213D22EF3C89D>]/Index[938 99]/Info 937 0 R/Length 166/Prev 253383/Root 939 0 R/Size 1037/Type/XRef/W[1 3 1]>>stream Trade Exams Line of Credit Now you can signup online! Gov tn form on the web: To get started on the document, use the Fill camp; Sign Online button or tick the preview image of the document. To reinstate a contractor's license expired more than 12 months, a contractor must: complete the "Contractor's License Application"; select "Reinstatement" on page one (1); and list the license ID# of the expired license. For more information relative to renewals, you may contact our office by email at:Contractor.Renewal@tn.gov -or- Fax: (615) 532-2868 -or- Call our office at (615) 532-3985 or (615) 532-3994. For example, if the entity is wanting to go by, "John Doe DBA Doe's Quality Construction, LLC", this whole name must be on ALL documents; contracts must be in the name as licensed and could not be prepared as "Doe's Quality Construction, LLC" or "John Doe".). You will need your license number and registration code which was provided on your renewal notification. Contractors in Tennessee can manage their licenses through the state's CORE (Comprehensive Online Regulatory & Enforcement) system. License issuance takes 4 to 6 weeks. Process Piping - covers welding of the piping system; NO test, (CMC-B) classification. (Always check with local codes for their requirements. These contractors may need to check with the Department of Environment for further state requirements at 888-891-8332 or theirDepartment of Environment website. This limit must cover the total project and it cannot be split into phases of smaller contracts to circumvent the law. Landscaping - No trade exam; apply for a BC-29 classification. PSI offers special accommodations for those with disabilities and this information is in the "Candidate Information Bulletin". You will be required to show two (2) forms of identification. The contractor could supplement their reviewed for audited financial statement with a "Line of Credit" (on the Boards format) in the amount of $5,000 to increase working capital; or. Related party or owners receivables (not allowed as a current asset), Cash restricted for special purposes (Restricted cash may be classified as a current asset if it is considered to offset maturing debt that has been properly classified as a current liability), Receivables not expected to be collected within one year, Depreciable assets (buildings, equipment, tools, etc. You may also check with the National Inspection Testing Certification (NITC) for local certification locations at 877-457-6482. The monetary limit is the total dollar amount per each individual contract or project. Raw, undeveloped land is not a current asset. Guaranty Agreement BC-A/R Limited Residential Restricted License - *$125,000 Limit Or Less Section 5.