New York Home Improvement Contractor Licensing Guide

Learn about how to become a licensed home improvement contractor. This complete guide will provide all the information you need to apply for licensing in the state through the New York Department of Consumer and Worker Protection (DCWP).

Who Needs to Be Licensed as a New York Home Improvement Contractor?

New York code reads as,

“Any person or business who wishes to do construction, repair, remodeling, or other home improvement work to any residential land or building in New York City must obtain this license. This also includes but is not limited to work for the construction, replacement, or improvement of basem*nts, driveways, fences, garages, landscaping, patios, porches, sidewalks, swimming pools, terraces, and other improvements to structures or upon land that is next to a home or apartment building.”

In general, anyone performing residential construction or improvement will need to be licensed.

Who Does Not Need a New York Home Improvement Contractor License?

The following parties are exempt from the licensing requirements:

An individual employee who works for the contractor, including a salesperson
A person performing a home improvement job, which is less than $200
Plumbers and electricians acting within the scope of their licensed craft
Architects and engineers acting exclusively within the scope of an architect or
engineer

12 Steps to Becoming a Licensed New York Home Improvement Contractor

The following steps are required for anyone wishing to be a licensed home improvement contractor in the state of New York. We will cover each step in more detail.

Basic License Application

Sales Tax Identification Number OR Application Confirmation Number

Proof of Business Address

Proof of Home Address

Workers’ Compensation Insurance Information

Proof of U.S. Environmental Protection Agency (EPA) certification relating to safe lead practices AND/OR Signed Affirmation

DCWP Trust Fund Enrollment ($200 fee) OR Copy of $20,000 Surety Bond (or Third Party Bond), properly signed

Contractual Compliance Agreement

Home Improvement Exam and $50 Exam Fee

Fingerprints and Processing Fee

Granting Authority to Act Affirmation (if applicable)

License Fee

1. Complete an Application

Each person is required to complete an application. The following basic information will be needed to complete the application.

Their company name
Company Address
Company Tax ID Number (EIN)
Their New York Sales Tax Number OR Certificate of Authority Confirmation Number. A Certificate of Authority to Collect Taxes may be obtained from New York’s Business Express Site.
Your business’s legal structure such as sole proprietorship, LLC, Partnership, Corporation or S-Corp.

Applications may be filed in person or online.

File in Person

You may file in person at either DCWP Licensing Center or NYC Small Business Support Center. You must make an appointment to file in person.

DCWP LICENSING CENTER
42 Broadway, Lobby
New York, NY 10004
By Appointment Only Hours:
Monday-Thursday: 8 a.m. – 4 p.m.
Last appointment: 3:30 p.m.

NYC SMALL BUSINESS SUPPORT CENTER
90-27 Sutphin Blvd, 4th Floor
Jamaica, NY 11435
By Appointment Only Hours:
Monday-Thursday: 8 a.m. – 4 p.m.
Last appointment: 3:30 p.m.

By Email: [emailprotected]
By Phone*: Call (212) 436-0441. (Monday - Friday, 8 a.m. - 4 p.m.)

File Online

You should collect all required information in steps 1 - 12 before creating an account and starting your online application.

Start Your Online Application
for a NYHome Improvement Contractor
License

You will be directed to the DCWP website.

2.Provide Proof of the Ability to Collect Sales Tax

Each applicant must provide their Sales Tax Identification Number. The Sales Tax Identification Number is the 9, 10, or 11-digit number on your New York State Department of Taxation and Finance Certificate of Authority. If you currently do not have a Sale Tax Number, you must register for one on the State’s Website and provide the 6-digit confirmation number you received when you submitted the application for a Certificate of Authority.

3.Provide Proof of Business Address

Each applicant must provide proof of their business address. Acceptable forms include the following, but must be in the business’ name or the name of at least one individual on the application:

Utility bill, dated within the last 90 days (e.g., telephone, gas, electric, cable, or water) OR
Current lease or deed OR
Current rent or mortgage bill OR
Insurance document or insurance bill that shows your business address OR
Correspondence from any government agency that shows your business address OR
Current (active) license or permit or certificate issued by a City/State/Federal government agency that shows your business address

4.Provide Proof of a Home Address

Each applicant must provide proof of their business address. Acceptable forms include the following, but must be in the business’ name or the name of at least one individual on the application:

Utility bill, dated within the last 90 days (e.g., telephone, gas, electric, cable, or water) OR
Current lease or deed OR
Current rent or mortgage bill OR
Insurance document or insurance bill that shows your business address OR
Correspondence from any government agency that shows your business address OR
Current (active) license or permit or certificate issued by a City/State/Federal government agency that shows your business address

Individuals Living with Others

If a person lives at another person’s residence, they must submit proof of residence through one of the documents listed above AND a letter signed by the homeowner or leaseholder stating that the individual lives at the address.

5.Provide Proof of Worker’s Compensation Insurance

All applicants must provide the state with proof of worker’s compensation insurance coverage. Worker’s compensation insurance compensates employees from job related injuries. Work comp insurance can be obtained from any New York licensed property and casualty insurance broker/agent. The following forms are acceptable forms to show proof of worker’s compensation insurance:

An Insurance Certificate for workers’ compensation insurance from a private insurance carrier or the New York State Insurance Fund Office. Accord forms are not acceptable. The Insurance Certificate must name the Department of Consumer and Worker Protection as the certificate holder and include the Department’s address:

42 Broadway
New York, NY 10004

ACertificate of Attestation of Exemptionfrom the New York State Workers’ Compensation Board (if you claimed exemption from the requirement to hold workers’ compensation insurance).

Generally, only two parties can obtain a New York Certificate of Exemption. These include: New York entities with no employees and Out-of-state entities obtaining a contract or license where all the work is performed outside of New York State.

6.Proof of EPA Certification AND/OR Signed Affirmation

Each applicant must submit an EPA certification depending on the type of work performed. The three options include:

Option 1

Copies of EPA Renovation, Repair, and Painting (RRP) certification AND EPA Lead-Based Paint Activities certification (also known as Lead Abatement certification). Certifications must include name, EPA certificate number, and EPA certificate expiration date.

Option 2

Copy of either EPA RRP certification or EPA Lead Abatement certification AND signed Home Improvement Contractor Affirmation indicating that the other EPA certification is not required for any home improvement work performed by the applicant.

Option 3

Signed Home Improvement Contractor Affirmation indicating that both EPA certifications (RRP; Lead Abatement) are not required for any home improvement work performed by the applicant.

7.DCWP Trust Fund Enrollment OR Surety Bond

Purchase a New York Home
Improvement Contractor License Bond

$100 and No Credit Check Required

To protect consumers, the state requires all applicants to provide either a $20,000 surety bond or pay $200 and enroll in the state’s Home Improvement Contractor Trust Fund. The surety bond or Trust Fund protects homeowners and businesses against contractor non-performance and non-payment. Axcess Surety’s price for a New York Home Improvement Contractor Surety Bond is $100. Contractors choosing the surety bond option must also submit a copy of the bond receipt showing that the bond has been paid in full and does not expire before the end of the licensing period.

Learn more about the New York City Home Improvement Contractor License Bond.

8.Sign the Contractor Contractual Compliance Agreement

Every contractor must sign a Contractual Compliance Agreement. The agreement ensures that all of the home improvement contractor’s customer contracts follow Title 6, Rules of the City of New York, Section 2-221 Code. The agreement requires contractors to include contracts written in plain English, provide a cancellation provision and include all of the following:

The Contractor’s name, premises address, telephone number, and license number and the Salesperson’s name.
The date the contract is signed.
The approximate start and completion dates for the work, as well as any reasons the completion date could change. The contract should specify whether or not the Contractor and the homeowner have determined a definite completion date to be of the essence. Homeowners have the right to insist that the contract entitle them to cancel for a full refund if the Contractor fails to start the work within an agreed upon number of days after the stated start date.

A notice to the homeowner purchasing the home improvement that the Contractor or subcontractor who performs on the contract and is not paid may have a claim against the owner which may be enforced against the property in accordance with the applicable lien laws.
A payment schedule. If both parties agree to a schedule of progress payments, each advance payment must bear a “reasonable relationship” to the work performed, and each scheduled payment must identify and describe the work to be done, materials purchased, or other project-related costs that such payment covers.

A listing of all advertised representations made by the Contractor, including, but not limited to, any guarantees or warranties.
A clause where the Contractor agrees to furnish the Buyer with a Certificate of
Workers’ Compensation Insurance before beginning work.
A clause where the Contractor agrees to obtain all permits required by New York City law.
A specific description of the work to be done; the materials to be used, including brands, model numbers, and other identifying information; and the price of each.

9.Take the New York Home Improvement Contractor Exam

Once the application has been accepted, a contractor should register for their exam through ExamBuilder and pay the $50 exam fee. A contractor can register for the exam 24 hours after the state has accepted the contractor’s application. You cannot schedule the exam until DCWP has received and processed required documents and payments. Once DCWP has processed your application, it takes 24 hours for your information to appear in ExamBuilder’s system. Each applicant has 60 days to take the exam after it appears in the ExamBuilder system.

Only ONE of the following persons needs to pass the Home Improvement Exam: sole proprietor, general partner, corporate officer, principal, director, member, or shareholder owning 10% or more of company stock. You must confirm with DCWP who will take the exam. The exam fee is $50 and is separate from the application fee. The exam consists of 30 multiple choice questions and each applicant must get at least 21 of them correct to pass.

Should an applicant fail the exam, they can take it again. Should they fail the exam a second time, they will need to re-register and pay another $50 exam fee to take the test again.

10.Complete the Granting Authority to Act Authorization

Is Somebody Else Completing Your Application? If another party is completing the application process for you, you will need to complete a Granting Authority to Act Affirmation, which gives them permission to submit an application on your behalf.

New York Home Improvement Contractor Licensing Guide - Surety Bonds by Axcess (6)

11.Fingerprinting

All sole proprietors, general partners, corporate officers, principals, directors, members, and all shareholders owning more than 10% of company stock must be fingerprinted. Fingerprinting is done by IdentoGO. Appointments should be made by visiting https://uenroll.identogo.com/. In our experience, this process takes about 15 minutes at the IdentoGO location. The applicant will need to enter the following information when registering:

Service Code: 1585BH
Agency ID: The Application Number is on your receipt or confirmation letter when you apply online.

You will also need to pay the service fee when applying online or pay in person.

12. Pay the Licensing Fee

The license always expires on February 28th of the year ending in odd numbers. The fee is based on when the license is granted.

From March 1 in an odd year -
August 31 in an odd year

From September 1 in an odd year -
February 28 or 29 in an even year

From March 1 in an even year -
August 31 in an even year

From September 1 in an even year -
February 28 in an odd year

Pay $100 for a license expiring February 28 of the next odd year. (Valid for at most 24 months.)

Pay $75 for a license expiring February 28 of the soonest odd year. (Valid for at most 18 months.)

Pay $50 for a license expiring February 28 of the soonest odd year. (Valid for at most 12 months.)

Pay $25 for a license expiring February 28 of the soonest odd year. (Valid for at most 6 months.)
OR
Pay $125 for a license expiring February 28 of the next odd year. (Valid for at most 30 months.)

Applicants can choose to pay in person or online. Payment options include:

Money order or Check made payable to DCWP (In person only), or credit card from Visa, Mastercard, Discover or American Express. Those using credit card will be charged a nonrefundable convenience fee.

Other Considerations

Will You Perform Sidewalk Work?

Contractors performing sidewalk work will need a permit from the New York City Department of Transportation.

Will You Be Hauling Job Waste?

Contractors that will be hauling or transporting any waste from their job sites will need to complete a Class One Self Hauler Registration from the New York City Business Integrity Commission.

Other Insurance

While not required for licensing, many homeowners, condo associations, and contracts will require additional insurance such as general liability to perform work.