Contractor license requirements vary state-by-state and are a significant barrier to employment.
Here are some general rules to keep in mind when applying for a Texas contractor license.
Must have a valid Texas license or other authorization to do business.
For contractors, this means the owner of the company must also have a Texas license.
Must be authorized by a Texas government agency.
If you are applying to a governmental agency, you may need to prove you are licensed.
Must meet certain minimum standards.
If your company is going to be operating under a contract with a public entity, you will need to be able to demonstrate that you are qualified to do the work.
Must also meet certain requirements for other types of government contracts, including the state of Texas.
Must obtain a permit to work in Texas.
If applying for the contractor license in Texas, you must submit a completed application to the Texas Department of Licensing and Regulation (DLR).
The DLR will then make sure that your application is approved and your license will be issued.
If the DLR finds that you have met all of the requirements, your license is valid.
Your company must have a contract in place before you can start working in Texas with it.
This means you must have been contracted to do work for the company.
You must complete all required training requirements before starting work with your company.
You may need a Texas resident worker permit to hire a Texas employee for your company, which will include passing a drug test and paying your state’s income tax.
You cannot work with a non-Texan employee if you do not have a Texan license or authorization.
You are required to obtain a license from the Texas Board of Land and Natural Resources (BLNR) in order to work with an Indian tribe in Texas and/or in the United States.
You can only work with people from your company’s legal name.
You need to provide proof of citizenship when you apply for the license, and you will be required to prove your legal identity before you are allowed to work for your employer.
You will need a valid driver’s license to work at your company if you are an employee, and if you’re an independent contractor.
You have to pay all required taxes on your Texas wages, and the Texas income tax will be assessed on your earnings.
You don’t have to file a federal income tax return for your Texas work, and no federal or state taxes will be due on your salary.
If someone has been convicted of a crime, you can be sentenced to prison or jail for up to 5 years for violating your company contract.
If a lawsuit arises that relates to your company and your contract, the company will have the right to terminate your contract and seek a new one from the court.
You do not need to pay Texas income taxes if you pay your taxes in Texas for a year or more.
The Texas Board can’t issue you a license unless you meet all of your requirements.
You’re not allowed to do anything you don’t want to do.
You should only do things that will benefit your company in some way, not everything.
You’ll need to obtain all of these forms from the DLNR to apply: 1.
Your Texas license 2.
A Texas employer statement 3.
A tax return (if you file it) 4.
A letter from your employer stating your agreement with the DLRR to pay your state taxes 5.
Your paycheck, tax receipts, and any other receipts for state taxes or other obligations you have in Texas that you need to send to the DLRC within the next 5 years 6.
A completed application for a license 7.
A written statement from your lawyer or tax professional that states your intent to file for and pay Texas taxes in the next 6 months 8.
A certified copy of any paycheck or other tax return you’ve filed that you’re required to send the DLRM within the previous 2 years 9.
A list of all the Texas employees who are licensed and have filed their own tax returns 10.
A statement from a Texas state agency, including a copy of the state tax returns that they are required by law to file in the future 11.
A copy of a Texas employment agreement (if any) 12.
A valid Texas driving record (if applicable) 13.
A business statement (if necessary) 14.
A non-negotiable, signed contract or agreement signed by all parties 15.
A signed contract signed by the person you work for.
Your business must meet the following criteria: 20.
A contract must: Be for a specific, tangible purpose (like a job), not just a contract for work.
A work agreement must: (a) Include the amount of any work to be done