One of the most important reasons contractors have to carry licenses is for safety’s sake. The business law section typically covers best practices, tax rules, business ethics, and other vital aspects of fair business.īetween the trade and business sections, contractors have to prove their worthiness to carry a license and contract with the public. Trade knowledge ensures that contractor applicants know how to do the job properly. Most states that offer contractor licensing exams have at least two main sections: trade knowledge and business law. Contractors also need to run fair and ethical businesses, and states need to ensure they do so to protect consumers. Consumer protectionīuilding isn’t the only aspect of running a contracting company. Most of these reasons are to ensure that the contractor is capable and responsible on several different levels. But the truth is, there are plenty of reasons to be properly licensed. On the surface, a contractor license might seem like just another hurdle in starting a business.
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