Delaware contractor license requirements

Licenses and registrations

Resident Contractor business license

Any person who wants to engage in business in Delaware as a contractor and is based in Delaware.

• Good to know: A tax and business license, not a competency license; no exam or experience requirement. Must be obtained before or when the contract is signed.

Nonresident Contractor business license

Out-of-state contractors and subcontractors working in Delaware.

• Good to know: Nonresident contractors must post a bond with the Division of Revenue equal to 6% of the contract; Division of Revenue forms reference this when contracts accumulate over $20,000. Contractors who hire nonresident contractors must report those contracts to the state within 10 days.

What you need to qualify

• Insurance: The Division of Revenue cannot issue a contractor license until the applicant files a certificate of insurance showing workers' compensation coverage (or proof of qualified self-insurance), plus a certificate of notice from the Department of Labor.
• Bond: Nonresident contractors: bond of 6% of the contract amount to guarantee payment of state tax liabilities. No bond for resident contractors.
• Business registration: Register through Delaware's One-Stop Business Registration and Licensing system.
• Also required: Contractors pay a gross receipts tax of 0.6472%, filed monthly with a $100,000 monthly deduction, or quarterly with a $300,000 quarterly deduction if lookback-period taxable gross receipts are under $1,500,000.

Fees, renewal and continuing education

• Fees: $75 license application fee, plus the gross receipts tax.
• Renewal: Annual. The license is valid until January 1 and may then be renewed for a full year; renewal is $75 plus the gross receipts fee.

Electrical, plumbing and HVAC work

Electrical: Delaware Board of Electrical Examiners. Plumbing and HVACR: Board of Plumbing, Heating, Ventilation, Air Conditioning and Refrigeration Examiners (master plumber, master HVACR and master restricted HVACR licenses). Both are under the Division of Professional Regulation.

Working without a license

Contractors, architects, engineers and construction managers who fail to report contracts with nonresident contractors face a civil penalty of up to $10,000 per occurrence; willful violations are a misdemeanor with a fine up to $3,000, up to 6 months in jail, or both. No penalty specific to working without the contractor business license was found in Chapter 25.

What to confirm with the state

We couldn't confirm these on an official page when we checked. Ask the licensing office before you rely on them:

• Home improvement contract rules (written contract, cancellation, deposits) under Delaware consumer law
• City and county contractor licensing (for example Wilmington or New Castle County)
• Penalties for working without a contractor business license
• The exact contract amount that triggers the nonresident bond (forms reference $20,000; statute not located)
• Liability insurance requirements (none found at the state level)

Sources

1. Delaware Division of Revenue - Business Tax Forms (contractors)
2. Delaware Code Title 30, Chapter 25 - Contractors
3. Non-Resident Contractor Bond form
4. Non-Resident Contractor Letter for Contracts Under $20,000
5. IAB Form - Workers Compensation Proof of Insurance
6. Delaware Business License Search
7. Division of Professional Regulation
8. Board of Electrical Examiners
9. Board of Plumbing, Heating, Ventilation, Air Conditioning and Refrigeration Examiners