How to Get an Arizona Contractor License: Step-by-Step Guide

If you’re planning to work as a contractor in Arizona, it’s essential to understand the state’s licensing requirements. The Arizona Registrar of Contractors (AZ ROC) oversees the licensing process to ensure contractors meet specific standards, protecting public health, safety, and welfare. 

This guide provides a comprehensive overview of the steps to obtain a contractor license in Arizona, along with helpful tips and answers to frequently asked questions.​

1. Determine the Appropriate License Classification

Arizona offers various contractor license classifications based on the type of work you intend to perform. These classifications fall into three main categories:​

• Commercial Work: Involves contracting for commercial projects.​
• Residential Work: Involves contracting for residential projects.​
• Dual License: Allows contractors to undertake both commercial and residential projects.​

Each category encompasses general and specialty licenses. For a detailed list of classifications and their specific requirements, refer to the License Classification Requirements provided by AZ ROC.​

2. Establish a Legal Business Entity

Before applying for a contractor license, you must establish a legal business entity. This can be a sole proprietorship, partnership, limited liability company (LLC), or corporation. LLCs and corporations must be registered with the Arizona Corporation Commission and remain in good standing. 

Ensure that all persons listed on the application are at least 18 years old. Detailed information on forming a business entity is available on the Arizona Corporation Commission’s website.​

3. Designate a Qualifying Party That Meets the Experience and Examination Requirements

A Qualifying Party is an individual with the necessary experience, knowledge, and skills to oversee contracting activities. This person can be an owner, partner, member, or employee of the business entity. The Qualifying Party must meet specific experience and examination requirements, which vary by license classification.

The Qualifying Party must have a minimum of four years of practical or management experience in the specific trade. Additionally, they must pass the following examinations:​

• Statutes and Rules Exam (SRE): Covers Arizona contracting laws and regulations.​
• Trade Exam: Assesses knowledge specific to the chosen classification.​

Some classifications may allow for a waiver of the trade exam based on certain criteria. For information on exam waivers and requirements, consult the License Classification Requirements.​

4. Obtain a Surety Bond

All applicants must secure a contractor’s surety bond to ensure compliance with licensing laws and contractual obligations. The bond amount depends on the license classification and the anticipated annual gross volume of work. Bond amounts range from $2,500 to $100,000. Detailed bond information is available on the AZ ROC’s Bond Information page.​

5. Submit to Background Checks

Both the applicant and the Qualifying Party must undergo criminal background checks. This process involves submitting fingerprints and may incur additional fees. Instructions for completing background checks are provided during the application process.​

6. Prepare and Submit the Application

Complete the appropriate application form based on your business entity type:​

• Sole Proprietorship or Partnership: Use the Sole Proprietorship License Application Forms.​
• LLC: Use the LLC License Application Forms.​
• Corporation: Use the Corporation License Application Forms.​

Ensure all required documents, including exam results, background check receipts, bond verification, and government-issued IDs, are included. Incomplete applications may result in processing delays.​

7. Pay Applicable Fees 

The fees for obtaining a contractor license in Arizona vary by classification and type. Key fees include:

• Application Fees: $80–$200, depending on classification.
• License Fees: $270–$580 for initial and renewal licenses.
• Recovery Fund Assessment: Required for residential and dual licenses ($270–$370).
• Examination Fees: $54 for the Statutes and Rules Exam (SRE), $66 for trade exams.

AZ ROC offers fee waivers for military spouses and recently discharged veterans. A detailed fee schedule is available on the AZ ROC’s Licensing Fees page.​

After submission, AZ ROC will review your application. If any information is missing or incomplete, they will notify you. Once approved, you will receive your contractor license, allowing you to operate legally in Arizona.​

Helpful Tips for a Successful Application

• Attend an Applicant Education Seminar: AZ ROC offers free monthly online seminars that guide you through the application process. These sessions can be invaluable in ensuring your application is complete and accurate. More information is available here.​
• Double-Check Your Application: Ensure all sections are completed and all required documents are attached before submission.​
• Maintain Good Standing: Keep your business entity in good standing with the Arizona Corporation Commission and ensure your bond remains active to avoid issues with license renewal.​

Frequently Asked Questions 

How long does it take to process a contractor license application in Arizona?

Processing times can vary, but AZ ROC typically processes applications within a few weeks. Delays may occur if the application is incomplete or requires additional

Who can apply for a contractor’s license?

A sole proprietorship (individual), partnership, limited liability company (LLC), or corporation may apply for a contractor’s license if they have a regularly employed person with the necessary experience, knowledge, and skills who serves as the qualifying party. All persons listed on the application must be 18 years of age or older. ​

Who must be licensed as a contractor?

Any business that contracts or offers to contract to build, alter, repair, add to, subtract from, improve, move, wreck, or demolish any building, highway, road, railroad, excavation, or other structure, development, or improvement must be a licensed contractor. This includes subcontractors, floor covering contractors, hardscape contractors, and consultants representing themselves as having the ability to supervise or manage a construction project for the property owner. ​