Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Full Bio →

Written by

UPDATED: Jun 19, 2018

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

Check your state laws to see if you may have the option to transfer license, bond and insurance from your name into a company’s name.

Benefits of Forming a Corporation

Corporations offer increased liability protection for builders and contractors. In addition, properly created corporations can be sold or otherwise transferred to someone else when you are ready to retire from the contracting industry.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption

Transferring a Contractor’s License

Most licenses must be transferred through the local licensing office. In some jurisdictions, the form may be found on the department’s website, but for the most part you may want to physically make a trip over to the licensing office. In addition to the paperwork, a filing or transfer fee may be required. Also, some jurisdictions require an increased bond or insurance amount for a corporation, since the business shields you from personal liability.

What Is Required to Transfer a Bond and Insurance?

Transfers and increases in bond and insurance amounts are done directly through your insurance agency. Call your insurance agent for the proper forms and to ask any questions regarding the transfer process. In addition, always request proof of transfer for your records and for filing with your corporation.

After Transfering My License, Bond, and Insurance, What Next?

Contact the IRS for a tax ID. A corporation is an independent entity, so it is taxed independently. Visit the IRS office website to find your local IRS office.

Once you’ve obtained your tax ID, you’ll need to file and publish the necessary corporate documents with your state’s corporation division. Corporate forms are typically available from your state’s corporate division website and can be filled out and mailed in. There will also be a fee for setting up the corporation, so plan on including a check or money order with your application.

This article is a basic overview of the process of forming a contracting corporation. For further assistance with the process, consult a corporate attorney.