Home improvement contractors working in Washington D.C. need to be licensed. Learn all the steps needed to apply for and obtain your home improvement contractor license in this easy guide.
The following are all needed in order to become licensed as a Washington D.C. Home Improvement Contractor:
Home Improvement Contractors with a residence or business in Washington D.C. will need a Certificate of Occupancy or Home Occupation Permit.
If your construction business has a physical, commercial location, you will need a Certificate of Occupancy from the Department of Buildings Permit Division. A Certificate of Occupancy simply helps ensure that buildings and land in Washington D.C. comply with legal and safety standards. Specifically, they assure compliance with Zoning Regulations, D.C. Construction Codes, and The Green Building Act.
Applicants needing a Certificate of Occupancy in Washington D.C. can apply online by using the Certifi website.
Contractors wishing to operate from their home or place of residence, must obtain a Home Operations Permit (HOP). To need a HOP, you must be a resident of Washington D.C. AND it must be your primary residence. The following items will be needed to apply for a HOP:
If your place of business will be located outside of Washington D.C. proper, applicants will not need either a Certificate of Occupancy or a Home Occupation Permit.
Corporations, LLCs and partnerships must be registered with the D.C. Corporations Division. All entities and sole proprietors must be a resident of Washington D.C. or have a registered agent. Registered agents must be a bona fide resident of Washington D.C. or a company physically located in Washington D.C. Companies and individuals located outside the District of Columbia will need to complete the Certified Resident Agent Appointment Form.
Washington D.C. Home Improvement Contractors are required to purchase and maintain general liability limits of at least $50,000 for single occurrence for bodily injury, $100,000 aggregate for more than one person in any accident, with a $10,000 property damage minimum for any single accident. These requirements are covered under Rule 16-803.
These amounts are the MINIMUM licensing requirement. In our professional opinion, these limits are woefully low for a contractor. Many general liability insurance carriers will not sell contractors a policy with less than $500,000 for single occurance and $1,000,000 aggregate limits. $1,000,000 single limit with a $2,000,000 aggregate is even more appropriate and an industry standard. Contractors with limits less than this may be prevented from working in some homeowners or condo associations. Additionally, it does not take much damage to result in a hefty lawsuit. Inadequate limits can easily put a contractor out of business or worse.
A certificate of liability that meets the minimum requirements is required for licensing.
In Washington D.C., all Home Improvement Contractors are required to designate and maintain a Basic Business License for at least one home improvement salesperson. The purpose of the Home Improvement Salesperson Designation Letter is to specify who may enter into construction contracts on behalf of the company. To apply for a the salesperson licensing, a person will need to pay the $154 fee, complete an application, and have the following:
All home improvement contractors must submit a police criminal history report in order to get licensed. All of the partners in a partnership, and the president, vice president, secretary, and treasurer of a corporation must provide a Police Criminal History Report (Form PD-70). Designated Salespeople must also obtain a report. The report must be dated within 30 days of when the application is made.
Washington D.C. residents can obtain a report from the following address:
You can schedule an appointment online.
The cost for the report is $7 and applicants will need their driver’s license, non-driver identification, or both a birth certificate and social security card.
Non-D.C. residents still need to obtain a criminal history report. However, they must obtain the report from the jurisdiction where they reside.
All D.C. Home Improvement Contractors must obtain a surety bond in the amount of $25,000. The surety bond protects homeowners and the public for damages if the contractor violates the laws and codes of their licensing. The surety bond must remain in place for the two year licensing period and renewed if the license is renewed. A Washington D.C. Home Improvement Contractor can obtain a bond at Axcess Surety for $500 that covers the two year period. No credit check is required.
As an alternative to the surety bond, the District of Columbia will allow a contractor to post a cash bond in the amount of $25,000 with the Department of Licensing and Consumer Protection.
All D.C. Home Improvement Contractors must provide a registered Tax ID number. The contractor’s Tax ID or Federal Employer Identification Number (FEIN) must be registered with the Office of Tax and Revenue before applying for a license. New businesses can request an ID by filling out Form FR-500 online. If you do not yet have a FEIN, you can apply online by visiting the IRS website.
In addition to a Tax ID, all home improvement contractors need to issue a Clean Hands Report. This report certifies that the contractor does not owe more than $100 to the District of Columbia government for fees, penalties, interest, or taxes.
Once the applicant has all the information listed above, they can go online and apply for a home improvement contractor license. The applicant will be required to pay the $288.20 fee to obtain the license.
Axcess Surety is the premier provider of surety bonds nationally. We work individuals and businesses across the country to provide the best surety bond programs at the best price.
