How to Become a General Contractor in Illinois

Although general contractors are not required to be licensed in Illinois, the subcontractors they hire might be. Plumbers, roofers and electricians are required to be licensed through the Illinois Department of Financial and Professional Regulation. General contractors, on the other hand, must be registered with the state and the counties in which they work and follow all local requirements for permits and subcontractor licensing.

Instructions

1. Register with the Illinois Department of Revenue, or IDR, as a business. Anyone conducting business within state borders must register. Registration occurs online or by completing Form REG-1, available from the IDR. You provide the following information: business organization type, such as sole proprietor, LLC or corporation; Social Security number or federal business identification number; business address; mailing address; and the name of the person responsible for filing all tax forms and payments.

2. Register the business locally. Contact the county clerk's office in each of the counties your business will be soliciting work in. Counties typically ask for a completed assumed-name registration and a Certificate of Ownership of Business application, but each county may have additional forms to complete. The clerk's office for Champaign County places its required business forms under the heading of "Vital Records."

3. Check city requirements. Cities usually adhere to state laws about not requiring the licensing of general contractors, but they're allowed to add additional licensing requirements. For example, Chicago requires general contractors and the trades of crane operators and masons to be licensed. General contractors working in Chicago should contact the city's Department of Buildings to initiate the licensing process. Chicago's licensing fees vary according to the type of license the contractor applies for. Fees start at $300 and can go as high as $2,000, as of May 2011, depending upon the value of the projects being engaged in.

4. Obtain all permits. Cities require construction permits according to their municipal codes. For example, the city of Naperville requires permits for new construction and additions to old construction, including the addition of a deck, fence or pool.

5. Ensure all subcontractors have the proper licenses and insurance. This includes plumbers, roofers, electricians, masons and fire safety installers. Licensed construction tradesmen are given a license number that can be checked through state and city resources. Proof of proper insurance is provided at the time of licensing but can also be verified by a notarized proof-of-insurance document. Contact the Illinois Department of Financial and Professional Regulation, or IDFPR, to initiate the verification process. The IDFPR provides an online search tool to locate state licensed contractors and other professionals.

6. Confirm that all items being worked on are permitted and licensed. This includes fire alarms, signs and security devices. Check city requirements for these permits.

7. Get bonded. A performance bond is a guarantee that all construction items will be completed by the general contractor. Private developers and public projects in cities and counties usually require a performance bond from the general contractor to guarantee completion of their projects. Smaller projects may not require a bond, but having one can build confidence when hiring a general contractor.

References

• Illinois Department of Commerce and Economic Opportunity: Business Profile --- General Contractor
• Illinois Department of Revenue: How Do I Register My Business?
• Champaign County Clerk Office: Assumed Name
• City of Chicago: Department of Buildings --- General Contractor Forms and Information
• City of Chicago: Businesses and Professionals --- Contractors
• City of Naperville: Building Permits

Resources

• Division of Professional Regulation: Find a Licensed Contractor in Illinois