In the state of Arizona, contractors have it easy should they want to practice their trade within the area. Basically, all you need is an Arizona contractor license to do any construction project costing $750.

What you need for an Arizona contractor license:

1. You must pass a business management exam within six months from the date you first applied. After that you'll have a year to apply for your Arizona contractor license

2. You must have prior experience in your trade to qualify for an Arizona contractor license.

3. There is some Arizona contractor license that does not need to take the trade exam. Consult the board office to check if your trade is one of them.

4. You must pay the fees required for any Arizona contractor license business. Apart from the application fees, exam fees and the actual license fee; you must also have money to chip in for a recovery fund. This is a requirement, which means you cannot opt out of it. You do have the option of either participating by paying $300 for your first year and $80 for the second or post a consumer bond for $100,000.

What to expect in your Arizona contractor license exam:

* The exam is two and one-half hours.

* It covers the following subjects: Business management, Licensing laws and rules, Estimating and bidding Contracts & agreements, Project management, Insurance & bonding, Safety record keeping & reporting, Labor laws & employment regulations, Financial management, Tax laws, Liens, Environmental laws & regulations

* After the general exam, you have to pass a three-four hour exam covering the trade that you want your Arizona contractor license in.

There are separate licenses for commercial and residential Arizona contractor license. You should take the time to check which one is your trade so you can avoid taking an exam thrice.

After passing the exam, what's next?

When you've passed the Arizona contractor license exam, you can now collect all the other requirements to complete your Arizona contractor license application.

* a financial statement,

* proof of Workers' Compensation Insurance if you have employees,

* and a bond. The amount of the bond depends on what type of Arizona contractor license you applied for and a projection of the gross amount of business you are expected to do in Arizona.

For a commercial Arizona contractor license, bonds start from $2,500 to $90,000 for each license. For a residential contractor license, they're from $1,000 to $15,000 each. Residential contractors also need to pay into the Arizona Recovery Fund.

What is the recovery fund?

The Arizona recovery fund is like an insurance against poor construction by the contractor. If ever the Arizona contractor license holder makes a mistake, the consumer can be protected from the low quality of work.

One last expense

To get your Arizona contractor license, you will have to pay for it. The amount depends on the classification of your license and may change each year.

License fees are:

* $890 for commercial construction general or engineering classification

* $645 for commercial specialty construction trade

* $445 for residential construction general or engineering classification

* $320 for residential specialty construction trades

* $1,105 for dual general classification

* $815 for specialty duel classification

Follow these simple steps to getting your Arizona contractor license. With each step accomplished, you are nearer to legally practicing your trade. And closer to taking more clients and earning more money.