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Nevada Contractors Board License Financial Statement Requirements

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    Contractors renewing an existing license, applying for a new license or increase in bid limit, must understand the financial requirements set forth by the Nevada Contractors’ Board.

    In an effort to minimize time and cost, we educate our clients on the financial statement requirements imposed in conjunction with the licensing requirements. The Board’s applications refer to 3 types of financials: Audited, Reviewed, or Compiled with full disclosures. The time and cost involved in presenting financial statements depends on the type so it is important that the Contractor understands the difference between engagement types and when each is necessary.

    Schedule a Free Board Review Consultation with a Licensed CPA (702) 487-3322

    Nevada Contractors Board License Financial Statement Requirements FAQ

    Who may be issued a contractor’s license from the Nevada State Contractors Board?
    Any qualified individual or business entity including limited liability companies, general or limited partnerships, joint ventures or corporations may be issued a contractor’s license.

    Do I qualify to receive a Nevada Contractor’s License?

    To qualify for a Nevada contractor’s license you need the specific skill set, field supervision, and experience necessary to operate and manage a construction business. This includes at least four years of experience (within the last 10 years immediately prior to the time of application) working as a contractor, supervisor, foreman, or journeyman, within the same classification of the contractor’s license you are applying for.

    Alternatively, if lacking these requirements, you may be represented by a “qualifying individual” who does meet the requirements listed above.

    When is a Nevada contractor’s license required?

    Any individual or business involved in the construction or alteration of a road, highway, or parking facility, or any structure or building located in Nevada is required to be licensed through the Nevada State Contractors’ Board. It is illegal for any contractor or subcontractor to submit a bid if they are not licensed.

    What risks are associated with contracting without a contractor’s license?

    In Nevada, it is illegal to perform contract work without a license. Violators are subject to fines and/or imprisonment. Sequential violations increase the penalty. Violators with 3+ offenses may be charged with a Felony and be subject to a fine between $5,000 and $10,000 and imprisonment for no less than 1 and no more than 4 years.

    How do I apply for a Contractor’s License?

    Step 1: Obtain a Nevada Contractor’s License Application from the Nevada State Contractors Board. Contractor License application are available at any office of the Nevada State Contractors Board, or via the telephone from the Nevada State Contractors Board automated public info line (702) 486-1100 or (775) 688-1141, or on the Nevada State Contractors Board official website www.nscb.state.nv.us
    Step 2: Carefully fill out the Nevada Contractors License application, making sure to follow the instructions provided.
    Step 3: Include the following materials when submitting your application to the contractors’ state license board:

    • An up-to-date resume detailing your experience
    • Background disclosures
    • Financial Statement and all reference certificates

    Step 4: Submit the application. Include the application processing fee ($300), and all required documents.

    You may submit your completed application, required documents, and application fee to the office of the Nevada State Contractors Board:

    Northern Nevada State Contractors Board Office
    5390 Kietzke Lane, Suite 102
    Reno, NV 89511 Phone: (775) 688-1141
    Fax: (775) 688-1271
    Hours of operation: Mon – Fri 8:00 am – 5:00 pm

    Southern Nevada State Contractors Board Office
    2310 Corporate Circle, Ste 200
    Henderson, NV 89074Phone: (702) 486-1100
    Fax: (702) 486-1190
    Hours of operation: Mon – Fri 8:00 am – 5:00 pm

    Tips for filling out your Nevada Contractors License Application

    To avoid any delay in processing your application, go over your application before submitting it ensuring you’ve provided all requested information and materials within your application. If filling out the form by hand, print legibly in blue or black ink. Contractor license applications obtained on the internet from the contractors’ state license board website may be filled in on line and then printed. As always, make sure to sign and date the application before submitting.

    How much does it cost to submit an application to the contractors state licensing board?

    The processing fee for submitting an application for a Nevada contractor’s license is $300.

    Do I submit a bond or initial license fee with my contractor’s license application?

    No. Once your application is approved by the Nevada Contractor’s License Board, you will receive further instructions on submitting additional documentation and paying your initial contractor’s license fee.

    What will I need to do once my application for a contractor’s license is approved?

    Following application approval you will need to:

    • Pay the $600 biennial license fee for each application.
    • Submit the license bond. The amount required will be written on your approval letter.
    • Provide proof of compliance with Industrial Insurance/Workers’ Compensation Insurance or obtain an exemption affidavit.
    • Register with the Residential Recovery Fund and pay the fee or submit a certificate of exemption.

    What financial requirements must I meet in order to qualify for a contractor’s license?

    • Indemnification Agreement
    • Indemnification agreements are not required, however by including one with an application the board may consider the financial well-being of an applicant that may not have otherwise qualified.
    • Indemnification forms are available on the contractors’ state licensing board website.

      Indemnification Requirements:
    • Indemnification agreements must be specific to the entity applying for the Nevada contractor’s license.
    • Limited liability companies and corporations applying for a contractor’s license must also provide a resolution for the entity authorizing the execution of the agreement.
    • Bank verification form
    • Bank verification forms are required when submitting your application.

     

    Financial Statement

    When applying for a contractor’s license you must submit a current financial statement connected to the entity applying for the license.

    Financial Statement Requirements:

    • Sole proprietors and individuals within a general partnership are required to submit personal financial statements.
      Financial statements must be in US dollars.
    • Financial statements must include full disclosures.
    • Classified balance sheets are required when submitting business statements.
    • Personal statements prepared by a CPA must be accompanied with a supplemental schedule detailing working capital and net worth.
    • License Monetary Limits of less than $10,000 must include one of the following:
      A current financial statement prepared by an independent CPA.
      A current financial statement submitted on the appropriate form provided by the contractor state licensing board (available on the website.)
      A current financial statement/balance sheet prepared with accounting software that follows standard accounting guidelines and an affidavit declaring the accuracy of the financial statement.** Self prepared financial statements or compiled statements must be current within 6 months at the time of submitting your application.

    License Monetary Limits between $10,000 and $50,000 must include one of the following:

    Compiled financial statement prepared by an independent CPA, current within 6 months at the time of submitting the application.
    A financial statement, reviewed or audited by an independent CPA, current within 1 year at the time of submitting the application.

    License Monetary Limits between $50,000 and $250,000 must include one of the following:

    • Compiled financial statement prepared by an independent CPA, current within 6 months at the time of submitting the application.
    • A financial statement, reviewed or audited by an independent CPA, current within 1 year at the time of submitting the application.

    License Monetary Limits of $250,000 +

    A financial statement, reviewed or audited by an independent CPA, current within 1 year at the time of submitting the application.

    What are the bond requirements for a contractor’s license?

    Bond requirements are determined by the contractor state licensing board when your application is approved. Bonds vary in amount, ranging between $1,000 and $500,000. Bond amounts are calculated based on license classification, financial responsibility, monetary limit, experience and the overall character of the applicant. Once your application for a contractor’s license is approved, the board will inform you of the bond amount. You will be required to provide a surety bond or cash deposit for the amount due.

    Bond requirements for contractors working with residential swimming pools or spas

    If you contract, or will contract, work connected with residential swimming pools or spas, you must either:
    File a bond dedicated to the protection of consumers. This bond is in addition to other stipulations required by the Nevada Contractor’s License Board for obtaining or renewing an original contractor’s license.

    Provide a cash deposit to the board in lieu of the consumer protection bond.

    The amount of consumer protection bonds or cash deposits range between $10,000 and $400,000. The specific amount of the consumer protection bond or deposit will be determined by the licensing board, based upon an applicant’s professional and financial responsibility and scope of the applicant’s operation.
    Failure to provide and maintain the consumer protection bond or deposit may result in the rejection of an application, the revocation or suspension of a current license, or denial to renew a contractor’s license.

    What are the different Nevada state contractors board license classifications?

    Nevada State Contractors Board issues 3 classifications of contractor licenses.
    Class “A”—General Engineering Contractor. The principal business is connected with fixed works demanding specialized engineering skillset and experience.
    Class “B”—General Building Contractor. The principal business is connected with remodeling or constructing buildings or structures intended for the support, enclosure and shelter of persons or animals, chattels or movable property of any kind.
    Class “C”—Specialty Contractor. There are 36 different primary “C” license classifications for contractors who provide a specialized skill set and whose primary business involves specialized building trades or crafts. If a manufacturer performs on site construction, repair, or alteration, they are considered a contractor.

    Learn more. Schedule a Free Consultation (702) 487-3322

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    FREE CONSULT WITH A CPA + APPLICATION OVERVIEW

    • Drop files here or
      Max. file size: 256 MB.

      by submitting this form you agree to be contacted via phone/text/email.

      FREE CONSULT WITH A CPA + APPLICATION OVERVIEW

      • Drop files here or
        Max. file size: 256 MB.

        by submitting this form you agree to be contacted via phone/text/email.