Starting a business in the skilled trades is an exciting venture. Whether you’re diving into HVAC, plumbing, or electrical work, there’s immense potential for growth and success. However, before you begin installing systems, fixing leaks, or wiring homes, there’s a critical step you need to address: licensing.
Most states require businesses in regulated trades to operate under the guidance of a qualified license holder. If you’re a new business owner, you have two main options: obtain the license yourself or hire a licensed professional and establish a license agreement. Let’s break down what this means and how The Blue Collar Recruiter team can help.
Option 1: Obtain the License Yourself
If you’re planning to be the hands-on leader of your business, obtaining the necessary license yourself might be the best route. Here’s how to get started:
- Understand Your State’s Requirements
- Each state has specific rules and prerequisites for trade licenses. This often includes:
- Completing a set number of work hours in the trade.
- Passing a licensing exam.
- Providing proof of liability insurance or bonding.
- Study and Prepare
- Licensing exams typically test your knowledge of trade codes, safety protocols, and best practices. Many online resources and local organizations offer prep courses tailored to your trade.
- Apply for the License
- Once you’ve met the requirements, submit your application to your state’s licensing board. Keep in mind that this process can take several weeks, so plan accordingly.
Option 2: Hire a Licensed Professional
If obtaining a license yourself isn’t feasible—whether due to time constraints or lack of required experience—you can hire a licensed professional and establish a license agreement. Here’s what that entails:
- Find the Right Candidate
- Finding a licensed professional who aligns with your business goals is critical. This is where The Blue Collar Recruiter can assist. We specialize in connecting business owners like you with licensed experts in HVAC, plumbing, and electrical trades.
- Establish a License Agreement
- A license agreement is a formal contract that allows your business to operate under the professional’s license. This agreement typically outlines:
- The license holder’s responsibilities and oversight.
- Compensation for their role as the license holder.
- Liability and insurance coverage details.
- Pro Tip: Consult with a legal professional to draft a solid agreement that protects both parties.
- Maintain Compliance
- While the license holder ensures your business is legally authorized to operate, the responsibility of maintaining compliance falls on you. This includes adhering to local building codes, safety regulations, and any ongoing licensing requirements.
How The Blue Collar Recruiter Can Help
Navigating licensing requirements can be a complex process, but you don’t have to do it alone. The Blue Collar Recruiter team can:
- Connect you with licensed trade professionals to serve as your license holder.
- Provide guidance on establishing a license agreement.
- Help you build a team of qualified, experienced workers to support your new business.
We understand the unique challenges of starting a trade business and are here to ensure you’re set up for success from day one.
Why Licensing Matters
Licensing isn’t just a bureaucratic hurdle; it’s a critical element of running a reputable trade business. Operating without the proper credentials can result in hefty fines, lawsuits, or even the shutdown of your business. Beyond legality, having the right license signals to customers that your business is professional, trustworthy, and qualified to handle their needs.
Final Thoughts
Licensing might seem like a daunting process, especially when you’re focused on getting your business off the ground. However, it’s a foundational step that sets the stage for long-term success. Whether you choose to obtain the license yourself or hire a qualified professional, ensure that you understand and comply with your state’s requirements.
At The Blue Collar Recruiter, we’re more than just a recruiting service. We’re your partner in building and growing your trade business. Ready to take the next step? Contact us today to learn how we can assist with licensing, recruiting, and more.