Will Form 8865 Contractors 2023-2024

Hey, what's going on, my friend? This is Matthew Hammer with Local Contractor Blueprint. Today's video is all about how you can get a contractor's license. There are a couple of ways to go about this. One way is to get your own license. In order to do this, you need to have journeyman level skills and prove your experience. In California, for new license holders, they require a written letter of approval and two to three referral letters to confirm your job history and skill set. They may even check your taxes and pay stubs to ensure you have worked under a licensed contractor. Additionally, you need to pass a test, which can be prepared for through licensing schools. These schools focus on teaching you how to pass the test, but they may not provide real-life construction business knowledge. Once you pass the test, you need to get bonded and insured. The bond requirement in California is $15,000, and the insurance requirement is a $2 million aggregate policy. If you decide to form an LLC, there is an additional bond requirement of $100,000 for employee worker bond. Once you fulfill all these requirements, the license will be issued. Another way to get a license is by having a corporate license. In this case, you partner with real live contractors who already have licenses. They will act as the responsible managing officer for the company, and you can leverage their license to obtain your own. This bypasses the need to take the test and deal with the challenges of being a sole proprietor. It involves filling out an application and getting approved, purchasing the necessary bonds and insurance. This process took about six months for us, and the license expires every two years. As long as you stay updated, it's...