Starting a Small Contractors Business in Portland, Oregon

Since July 1, 2008, Oregon recognizes a difference between residential contractors and commercial ones. A small, start-up contractor needs to apply for a residential endorsement on his contractor's license, allowing him to work on residential and small commercial building projects. With the Construction Contractors Board (CCB) license, he is allowed to engage in a number of building trades, such as construction, painting, roofing, finishing and others in-line with a small contractor's business.

Instructions

1. Complete the 16 hours of training in law and business practices required for the state test. The training and test are based on the Oregon Contractors Reference Manual, 8th Edition. A list of training providers can be found on the Oregon Construction Contractors Board web site. See the link in the Resources section.

2. Take and pass the test. The test is 80 questions on business practices and law. You need a score of 70 percent to pass. There is a $106 fee to take the test. The test is administered for Oregon through Prometric. For questions about the test, contact Prometric at 800-462-8669.

3. Set up your business. Decide on your business structure and file with the Oregon Corporation Division. Business structures might be Limited Liability Company, corporation or other entity.

4. Acquire a surety bond. For a General Contractor with a residential endorsement, you would need a $20,000 bond.

5. Acquire general liability insurance. For a General Contractor with a residential endorsement, you would need $500,000 per incident liability insurance.

6. Provide evidence of worker's compensation insurance to submit with your CCB application.

7. Submit the completed CCB application with your test results, proof of surety bond, liability insurance and workers compensation and a $260 fee to the Construction Contractors Board. The license is good for two years, then will have to be renewed.

8. Register within 60 days of starting your business with the City of Portland for the Portland Business License Tax. Also register with Multnomah County for their Business Income Tax.

Tips & Warnings

• If you plan to work on large commercial and residential projects, you may need a dual endorsement on your license.

• If you plan to do business in communities outside the city of Portland, you might consider a Metro contractor's license. That one license will allow you to work in 20 surrounding towns in the Portland area. Portland itself does not participate in the Metro license.

• Doing construction work for which you are paid without a valid CCB license,not only puts you at risk for legal action by the state, but also puts the homeowners you work for at risk.

References

• Oregon.gov: Construction Contractors Board Licensing
• Portland Online: Business License Tax Program

Resources

• Oregon Construction Contractors Board: providers
• Metro: Regional contractor's business license