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If you lot're because starting a contracting concern in Kentucky, congratulations. Starting a business organisation is a large bargain, and information technology'south non for the faint of heart. Only when you're the boss, you lot tin can choose the projects you want to piece of work on, the contracts you want to have, and the areas you want to piece of work in. You're in accuse—as long as y'all play along with Kentucky contractor licensing requirements.

The issue is that it takes a lot of time and effort to get a business organisation off the footing. You might not have the fourth dimension to sort through all the different Kentucky contractor licensing requirements. Don't worry — this guide will help.

Contracting in another country? Check out The Ultimate Guide to Contractors License Requirements in Every Country.

Who needs a contractors license in Kentucky?

You might exist wondering if the State of Kentucky requires a business like yours to carry a license, and that'south a adept question. The fact is, Kentucky just requires electrical, plumbing, and HVAC contractors to carry a state-issued license.

That doesn't hateful you're off the hook, however.

Kentucky defers most of its licensing requirements to the local municipalities. This means that contractors working in sure cities might have specific requirements to come across. Some might even demand to bear licenses in several cities, depending on where they plan to contract.

Do you demand a contractors license to file a mechanics lien in Kentucky?

When a country defers its licensing requirements to local municipalities, it won't usually require contractors to carry a license to file a mechanics lien. That's the case in Kentucky as well, equally the land's mechanics lien laws let any contractor, regardless of licensing status, to file a mechanics lien.

But but because the state doesn't require you to deport a license to file a mechanics lien doesn't mean you lot shouldn't carry one. If y'all file a lien but are however struggling to get paid, you might take to foreclose upon that lien in court. If y'all're contracting in a merchandise for which the country requires a license, merely you don't bear that license, the court might non look upon your case so fondly.

For that reason, you should never contract without a license if the land requires 1.

Looking to file a lien in Kentucky? Check out How to File a Mechanics Lien in Kentucky – Footstep by Pace Walkthrough.

How to get a contractors license in Kentucky

The only contractors that the State of Kentucky requires to acquit a state-issued license are electrical contractors, plumbing contractors, and HVAC contractorsouth. Other than that, all licensing volition become through local municipalities and counties.

With that said, all businesses that operate within Kentucky are required to annals their business with the state.

Business Registration

All businesses operating in the Country of Kentucky need to annals with the Kentucky Department of Revenue, including contractors. The steps include:

  1. Plant your business
    1. Sole proprietors and general partnerships need to register with the County Clerk in which the business resides
    2. Other businesses must register with the Kentucky Secretary of State
  2. Obtain a Federal Employer Identification Number (if you accept employees)
  3. Register for Taxation Accounts and Republic Business Identifier
  4. Annals with the State, County, and Local Governments (which you lot will more than likely achieve when applying for licensing)

Most municipalities will require you to register with the state earlier applying for licensing, then this is the first step to getting a contractors license in Kentucky.

Electrical contractors

Applicants looking to start an electrical contracting business organization need to obtain a license through the Department of Housing, Buildings, and Construction. The requirements include:

  • Filling out this application
  • Obtain a liability insurance policy valued at $500,000
  • Proof of worker'south compensation insurance
  • $200 awarding fee
  • Passport photo
  • Pass the test

In order to actually operate equally a contractor, each electrical contractor must utilize a master electrician. The requirements for master electricians include:

  • Filling out this application
  • six years of experience as an electrician
  • $100 application fee
  • Passport photo
  • Pass the merchandise exam

Plumbing contractors

Contractors starting plumbing businesses in Kentucky must also go through the Department of Housing, Buildings, and Construction, only like electrical contractors. However, in that location is a significant departure in the requirements.

Unlike electrical contractors, plumbers don't have to carry a contractor'due south license , specifically. However, they do have to use a master plumber and piece of work under that person's trade license. The requirements for getting a master plumber license are:

  • Fill out this application
  • Pay $250 license fee
  • Attach a passport photo
  • Carry full general liability insurance
  • Carry worker's compensation insurance
  • Pass the trade test

HVAC contractors

HVAC contractors will also have to go through the Department of Housing, Buildings, and Construction for their licenses. And, dissimilar both electric and plumbing licensing requirements, the master HVAC license and contractor license are one and the same. The requirements include:

  • Complete this application
  • Laissez passer an exam including business concern and constabulary
  • Adhere a passport photo
  • Prove two years of mechanical experience
  • Proof of general aggregate insurance of $800,000
    • $500,000 general liability
    • $300,000 for property damage
  • Pay the awarding fee, which ranges from $145.83 to $375, depending on when you lot apply

Contractor licensing requirements by municipality

Most licensing requirements in Kentucky fall under the control of the individual municipalities or counties throughout the state. Each can have its ain requirements, so don't assume holding a license in one metropolis allows y'all to work in the neighboring city. Be sure to check with the local edifice department.

Louisville

Contractors working in Louisville, Kentucky, will need to obtain a license through the Louisville Metro Section of Codes and Regulations. In that location are several license types bachelor, including:

  • Edifice Type A – Contractors that volition obtain multiple permits throughout the year
    • Includes contractors working on single or multi-family residences, and they're required to complete 6 hours of continuing education each year.
  • Building Blazon B – For edifice contractors who wish to obtain merely one building permit per year.
  • Fire Detection
  • Burn down Suppression
  • Electrical
  • HVAC
  • Mechanical Refrigeration

The requirements for receiving a contractors license in Louisville are:

  • Obtain an Occupational License Number from the Louisville-Jefferson County Revenue Commission
  • Submit proof of worker's compensation insurance or an affidavit stating you don't take employees
  • Conduct liability insurance of $250,000
    • Must show the following as the document holder:
      Development, Louisville
      Office of Construction Review
      444 S. 5th Street, Kentucky 40202
  • Fill out this application

The fees vary depending on the application blazon, but Type A contractors will pay $125 while Type B contractors will pay $fifty. Almost other licenses are $75, but refer to page 2 of the application bundle for clarification.

Lexington-Fayette

Contractors working in the Lexington-Fayette expanse volition register their businesses instead of applying for a license. The steps are fairly straightforward. They include:

  • Completing a Document of Occupancy application
  • Applying for a business license through the city's Revenue department:

Acquirement
200 E. Main St., 2nd floor
Lexington, KY 40507

  • Provide proof of liability and worker's compensation insurance
    • $500,000 for each occurrence for General Contractors
    • $250,000 for each occurrence for General Contractors, Residential But
    • $100,000 for each occurrence for Specialty Contractors

Yous'll also have to consummate this awarding, which requires the following information:

  • Registration blazon (General Contractor, Full general Contractor Residential, Specialty Contractor)
  • List of current Kentucky country licenses for the specific trades performed
  • Names, addresses, and social security numbers of all owners
  • Choose a arbitration method from the awarding
  • Pay applicable fees:
    • $240 for General Contractor
    • $115 for General Contractor, Residential Just
    • $70 for Specialty Contractors
  • Accept the application notarized

Bowling Green

Bowling Greenish, Kentucky, requires general contractors and specialty contractors to obtain licenses. Licensing falls under the control of the Contractors Licensing Board. License types include:

  • Carpentry
  • Drywall
  • Electrical
  • Fencing
  • Framing
  • Glass and Glazing
  • Handyman
  • Landscaping
  • Masonry
  • Plumbing
  • Covering
  • Siding, and many more than

Would-be contractors will fill out this application, and include the following data:

  • The names, addresses, and social security numbers of all owners or officers
  • Applicable country license
  • Choose license type
  • Provide a document of insurance showing a minimum of $100,00 general liability
  • Proof of worker'south bounty insurance
  • Submit payment:
    • $250 for General Contractor
    • $100 for Specialty Contractor

You lot volition also need to obtain a Bowling Dark-green Occupational License through the Finance Department, too.

Penalties for unlicensed contracting in Kentucky

While Kentucky certainly doesn't condone unlicensed contracting, information technology leaves almost of the penalties upward to local municipalities. This means that many local jurisdictions have their ain form of punishment for contracting without a license, and they usually include steep fines and a possibility of jail time.

For instance, contractors in Lexington-Fayette who do non obey local licensing and registration laws are subject to fines between $50 and $500 per instance, and each twenty-four hours is a new example.

Protecting payments in Kentucky

Beyond simply ensuring that your business is above board with the local contractor licensing requirements, you take to protect your cash flow. Structure is a greenbacks-hungry business, and but a few months struggling to bring greenbacks in can bring a visitor to its knees. But, what's the best way to protect your cash flow? Preserving your lien rights by keeping your eyes on some important Kentucky regulations and deadlines.

For instance, subcontractors and suppliers must transport a preliminary notice (also known as a Notice to Owner) on all of their projects to preserve their lien rights, and the deadlines are a little wonky.

For projects valued at less than $ane,000 or owner-occupied residential projects, contractors have just 75 days to ship that notice. Projects valued at more than $1,000 bump that window up to 120 days. And, GCs don't have to run across these requirements to preserve their lien rights.

In that location is as well an important borderline to continue an middle on, and it's the window to file a mechanics lien. For all project tiers working under a Kentucky contract, the deadline to file a lien is 6 months from last furnishing materials or labor. This goes for GCs, subs, and suppliers, and missing that borderline could jeopardize your ability to file a lien for non-payment.

The deadline to foreclose upon the lien is just as of import as the deadline to file one. In Kentucky, all contract participants have up to 12 months from the date the lien was filed to enforce the lien. And, since the enforcement borderline cannot be extended in Kentucky, you must pay attention to this window.

With those deadlines and requirements in mind, yous'll be able to preserve your lien rights and protect your payment, ensuring your business can abound the way you planned.

Learn more: Make Certain Kentucky Mechanics Liens Are 'Subscribed and Sworn To'