Starting out
What it costs to become a contractor in Washington
L&I charges $150.20 to register. The bigger costs are the yearly premiums on your bond ($30,000 for general contractors, $15,000 for specialty) and your liability insurance, plus the business license fee to the Department of Revenue.
The fixed fee
L&I's contractor registration fee is $150.20.
The bond
You don't pay the bond amount itself. A surety company issues it and charges a yearly premium, which depends on the company and on your credit, so get two or three quotes.
- General contractor bond: $30,000
- Specialty contractor bond: $15,000
Liability insurance
L&I's minimum is $200,000 public liability and $50,000 property damage, or a $250,000 combined single limit. Your premium depends on your trade and how much work you do.
Business license
The Department of Revenue's application fee varies with what you register for, and city endorsements add their own fees.
What people forget to budget for
- Tools, a vehicle and signage
- A Google Business Profile (free) and a website
- Answering the phone while you're on a job: missed calls are missed work
See your free website preview. Free until we send you your first new customer enquiry, then $197.50/mo for 6 months, then $395/mo.
See your free previewQuestions
Is the $30,000 contractor bond paid up front?
No. You pay the surety company a yearly premium; the $30,000 (or $15,000 for specialty contractors) is how much the bond covers.
What's the difference between a general and a specialty contractor in Washington?
A specialty contractor works in one trade, like roofing or painting, and needs a $15,000 bond. A general contractor can take on more than one trade and needs a $30,000 bond.
Sources
- Washington L&I: register as a contractor: “General contractors: $30,000 bond. Specialty contractors: $15,000 bond. Insurance: $200,000 public liability and $50,000 property damage, or $250,000 combined single limit. Fee: $150.20.”
- Washington Department of Revenue: apply for a business license: “When you receive your business license, you'll be assigned a Unified Business Identifier (UBI) number.”
More guides: How to start a contracting business in Washington · How to get a contractor's license in California · How to get your first customers as a new contractor · Do I need a website for my new contracting business? · How to get your new business on Google Maps