If you are a contractor who plans to operate your business in the state of South Carolina, you should be aware that this is a state that has strict administrative procedures that need to be met before construction can begin. You will need to pass a licensing procedure that requires you to fulfill a set of requirements such as proving your experience, passing an exam, and posting a surety bond. This article will guide you through the process so that your business endeavor can commence smoothly.
The state of South Carolina has specific rules and regulations for the construction of buildings, and there are a number of different categories of licenses that are available to contractors who want to be licensed to do this type of work. The most common are general and mechanical, but there are also residential specialty and manufactured housing contractor licenses that need to be obtained. The exact types of work that each classification is authorized to do are detailed in the specific license application forms and on the state’s website.
Those who plan to become licensed commercial or residential building South Carolina contractors contractors in South Carolina must pass both the technical and business management/law exams at PSI. Once they have passed the exam they will receive an Eligibility Letter from PSI that they need to submit along with their application form and other requirements.
All licensed commercial or residential contractors must be insured and have a state surety bond in order to do business in the state. The amount of the surety bond required is based on which licensing group the applicant belongs to. There are five license groups in total and the amount of the bond varies depending on which one you belong to.
A contractor must also register their business and obtain tax registration numbers. This is especially important if you are planning to hire employees for your business. Additionally, you may need to obtain worker’s compensation insurance.
The state of South Carolina is also well known for its peanuts, which are commonly referred to as goober peas or groundnuts. They were first grown in the region by Native Americans who cultivated them because of their brown markings that somewhat resemble letters of the alphabet. They became very popular as a snack in the early 1900s and were eventually made into the official state snack in 1984, joining Carolina, which was adopted in 1911.
Finally, those who are applying for a license as a residential building contractor or a manufactured home contractor will need to submit a financial statement and affidavit with their application. Those in license group 1 must provide a statement prepared by an accountant, while those in group 2 must submit an owner-prepared financial statement and affidavit.