HVAC vs. general contractor licenses
In some states, HVAC contractors must obtain specific HVAC licenses. For example, in Kentucky, an HVAC Contractor License is required for all individuals and businesses performing HVAC services. The application requires passport photos of each applicant, examination score certificate, proof of general liability insurance, and proof of employment. The application fees range from $150 to $375, and the license must be renewed annually.
In other states, HVAC contractors must obtain a general contractor license. In North Dakota, all contractors who perform more than $2,000 worth of work must be licensed. The application requires information on all officers and owners, a statement from North Dakota Workforce Safety & Insurance that the applicant has secured satisfactory Workers' Compensation coverage, and proof of general liability insurance. Application fees range based on the monetary amount of each project the contractor plans to work on. The license must be renewed annually.
Residential work may require a home improvement contractor license
If you are an HVAC contractor and plan to do residential work, you may need to obtain a state home improvement contractor license.
For instance, Pennsylvania does not have a general contractor or HVAC contractor license requirement. However, an HVAC contractor in the state who performs residential services must register with the Office of the Attorney General as a home improvement contractor.
What are the requirements for HVAC contractor licenses?
HVAC license requirements can vary by state. Even at the local levels, HVAC licensing laws depend on the work you do. To receive an HVAC license, you may need to do one or more of the following:
- Have worked a minimum number of years as a journeyman, foreperson, or supervising employee
- Pass a trade exam
- Pass a state exam
- Meet EPA Section 608 technician certification requirements
- Provide a contractor bond
- Comply with insurance requirements
- Pass a background check
How much does HVAC certification cost?
The cost of getting your HVAC license or certification will vary depending on the state or granting organization. In general, a license can range from a few hundred to several thousand dollars. This cost includes expenses, such as course registration fees, coursework and materials, examination fees, renewal fees, and possible reinstatement fees if your certification lapses or expires.
Other HVAC business license requirements and registrations
In addition to specialty HVAC contractor licenses, there are many licensing, permit, and tax registrations that may be imposed on your business. Here are some common requirements for any business:
- Basic business operation license. This is a license from the city in which your business will operate, or from the local county (if the business will be operated outside of the city's legal boundaries).
- Federal tax ID (EIN) number. Issued by the IRS, the EIN is also called a tax identification number or employer identification number and is required for almost all types of businesses.
- State tax ID number. Issued by your state’s department of revenue or taxation, the state tax ID number is also called a tax registration number.
- DBA/fictitious business name registration. The doing business as (DBA) or fictitious business name registration happens with the appropriate state or local jurisdiction.
- Zoning and land use permits. Local government zoning laws may prohibit certain business activity in designated areas.
- Building permit. If you plan on remodeling or building a commercial space, you'll need to get a building permit.
- Sales tax license/sellers permit/resellers permit. This license/permit has many names, and those names vary by state, but it is required for sales tax purposes.
- Workers’ Comp Insurance. In most states, workers' compensation coverage is mandatory if you have at least one employee.
- Payroll tax registration. If your business has one or more employees, your business likely needs to comply with a variety of payroll tax laws at the federal and local levels.
- Unless the business qualifies for an exemption, it will need to file a beneficial ownership information (BOI) report with FinCEN.
