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If you're interested in choosing the jobs you take on, setting your own hours, and being the boss, the life of an independent contractor may be exactly what you're looking for. You can become an independent contractor in almost any field, but if the construction industry is your goal, you'll want to set your sights on obtaining a contractor license.

Every state has different licenses available and specific qualifications for obtaining them, but the steps to getting your preferred license tend to follow the same basic trajectory. Here's what you need to know about becoming an independent contractor in the construction industry.

Complete Education/Experience Requirements

An independent contractor is permitted to provide end-to-end services on construction projects, which may include:

• Project planning
• Asset management, such as materials and labor
• Code compliance
• Adherence to safety standards
• Overseeing the project from start to completion

These services require significant industry knowledge and skill. That's why most states have hefty education and/or experience requirements.

Often, you must hold a journeyman license in a related skilled trade for up to four years before you become eligible to obtain a contractor license. You may have the option to substitute approved education for a portion of the experience requirement.

Set Up Your Business

In anticipation of obtaining your contractor license, you'll want to set up a business entity that allows you to operate independently. This setup involves taking steps like these:

• Choosing your preferred business structure, such as sole proprietorship, LLC, or S-Corp
• Registering your business
• Obtaining required business licenses and permits
• Securing a tax ID number
• Opening business bank and credit accounts

You will also need to obtain relevant insurance policies.

Fulfill Financial and Insurance Obligations

As an independent contractor, you take on a range of liabilities when you accept contracts for construction projects. You are responsible for maintaining worker safety, paying vendors and subcontractors, and protecting owners against project default.

For this reason, contractors are often required to provide proof of financial responsibility, suitable bonding, and insurance policies, including general liability and workers' compensation. Again, the exact requirements vary by state, but it's essential to understand your obligations before you apply for a contractor license.

Pass State Exams

Once you have completed these requirements, you must pass state testing. Usually, this includes one or more trade-specific exams, along with the state's Business and Law or Business and Finance Exam.

In some cases, states forgo developing their own exams in favor of national or international testing administered by an organization like the International Code Council (ICC).

Preparing for Success When Applying for a Contractor License

Even after you've completed education/experience requirements, set up your business entity, and fulfilled financial and insurance obligations, obtaining a license in your area may still hinge on passing state exams. The right exam prep program can help you pass on the first try, thanks to courses developed by industry experts and educators, and 24/7 online access for self-paced learning.

If you're on track to obtain a contractor license, contact RocketCert now to find state-approved exam prep programs designed to help working professionals cross the finish line.