Licensing Guides
State Contractor License: How to Become a General Contractor in Montana
Contractor, MT
Table of Contents
Why Do You Need a Contractor License in Montana?
How Can You Get a Contractor License in Montana?
Types of General Contractor Licenses in Montana
What Are the Requirements of a Montana Contractor License?
How Long Does It Take to Get a Contractor License in Montana?
How Much Does It Cost to Get a Contractor License in Montana?
Montana Contractor License Training Programs and Schools
Does Montana Reciprocate Contractor Licenses?
Do I Need to Renew My Contractor License in Montana?
Are There Any Penalties for Contracting Without a License in Montana?
We all need a place to live and work, and those buildings require upkeep and repair. They’re often the biggest investments we make in our lives and keeping them in good condition is essential. We count on professionals to know how to fix damage to or wear and tear on our homes and businesses. General contractors are typically the experts we rely on to help us with these repairs, and we need these people to know what they’re doing.
Many states require contractors to be licensed. Others simply require solid insurance to back up the essential work they perform. There are 520,900 construction managers and 1,599,800 construction laborers and helpers nationwide, according to the Bureau of Labor Statistics (BLS). Montana employs 1,740 managers and 4,330 laborers and helpers. The national number for managers is projected to grow 9% from 2023 to 2033 and 8% for laborers and helpers. In Montana, according to CareerOneStop, the U.S. Department of Labor’s job search website, the projected growth rate for laborers and managers is much higher, at 24% and 19%, respectively. If you’re thinking about becoming a contractor or you want a job in the field, you need to know the requirements in your state or local jurisdiction. This guide will help you determine what you need before you get started as a registered contractor in the state of Montana.
Why Do You Need a Contractor License in Montana?
A contractor registration is necessary to perform construction work legally in the state of Montana. Montana Code defines a contractor as, “anyone who adds to or takes away from a structure, project, development, or improvement attached to real estate.” Registration is overseen by the Montana Department of Labor and Industry.
How Can You Get a Contractor License in Montana?
The registration requirements are spelled out on the Montana Department of Labor & Industry Employment Standards Division’s website.
Corporations and LLCs must first register with the Montana Secretary of State. Business structure and principals will be verified. Companies with employees must obtain workers’ compensation insurance. Independent contractors need to provide documentation totaling 15 points to prove they’re truly established in a trade or occupation. Point values are determined by the Montana Department of Labor & Industry. Acceptable documentation includes:
Workers’ compensation, unemployment insurance, and revenue accounts: 10 points
Memo of Understanding or contract evidencing independent contractor status or Emergency Equipment Rental Agreement: 6 points
General commercial liability insurance or insurance bond certificate: 6 points
List of tools and equipment owned and controlled by the applicant with approximate value: 6 points
Business tax forms or records from within the last three years - IRS Schedules C, E, F, or K: 6 points
Form 1099s from within the last three years: 6 points
Trucking company lease agreement: 6 points
Certification for Indian Preference by a federally recognized Indian tribe: 6 points
Partnership agreement: 3 points
Professional license relevant to your trade, occupation, or profession: 3 points
Educational certification relevant to your unlicensed trade, occupation, or profession: 3 points
City or county business license or permit: 3 points
Registration of business name and structure with Montana Secretary of State: 3 points
Articles of incorporation, organization, or annual report: 3 points
Business location documentation (lease or rental agreement, business property tax statement, or IRS 8829): 3 points
Business bank account: 3 points
Professional membership or affiliation: 3 points
Advertising (internet website, newspaper, phone book, or magazine): 3 points
Pre-printed forms, business card, or brochure: 1.5 points
Invoices billed to your business name: 1.5 points
Advertising for your business using sign on vehicle, yard, bulletin board, flyer, or social media: 1.5 points
Order receipts for branded hats, shirts, apparel, pens, or pencils for your business: 1.5 points
Documented proof of federal employer identification number (FEIN, TEIN or TIN): 1.5 points
Credit card or purchasing account for your business (can’t be for personal use): 1.5 points
Telephone or utility bill for business: 1.5 points
Vehicle registration for your business: 1.5 points
International fuel tax account number (IFTA): 1.5 points
USDOT number: 1.5 points
Dun and Bradstreet number: 1.5 points
Types of Contractor Licenses in Montana
There are two types of contractor registrations in Montana:
Construction Contractor: Required for all businesses in the building and construction industry that have employees.
Independent Contractor: For contractors who are engaged in their own independently established business, occupation, trade, or profession. Must be free from control or direction of a hiring agent.
An Independent Contractor can choose to register as a Construction Contractor if they want. Some construction companies only hire subcontractors who are registered as a Construction Contractor. In addition, commercial and residential customers see Construction Contractor registration as a sign of credibility and may hire them over Independent Contractors.
Independent Contractors must have self-elected workers' compensation coverage or obtain an Independent Contractor Exemption Certificate (ICEC), which waives the rights and benefits that would otherwise be provided by a workers’ compensation insurance policy.
Getting a general contractor license
To register as a Construction Contractor, follow these steps:
REGISTER YOUR BUSINESS: Limited liability partnerships, limited liability companies, and corporations must register with the Montana Secretary of State’s office.
OBTAIN WORKERS’ COMPENSATION INSURANCE: Construction Contractors must obtain a Montana workers’ compensation insurance policy to cover all employees.
FILL OUT APPLICATION: Fill out therequired contractor registration application form and send it to Construction Contractor Registration Unit, PO Box 8011, Helena, MT 59604-8011, along with a $70 application fee. Walk-in customers can submit the application at 301 South Park Avenue, Floor 4, Helena, MT 59601.
To register as an Independent Contractor, follow these steps:
REGISTER YOUR BUSINESS: If you intend to use a company name separate from your personal name, register the name with the Montana Secretary of State.
OBTAIN INSURANCE OR FILL OUT WAIVER: Independent Contractors must be covered under a self-elected workers' compensation insurance policy or obtain an Independent Contractor Exemption Certificate (ICEC).
COMPILE BUSINESS DOCUMENTATION: With their application, Independent Contractors must provide documentation totaling 15 points to prove they’re truly established in a trade or occupation.
FILL OUT APPLICATION: Fill out the required application, get it notarized, and send it to Department of Labor and Industry, Independent Contractor Central Unit, PO Box 801, Helena, MT 59604-8011, along with a $125 application fee.
For those interested in specific trade licenses, we recommend consulting our comprehensive guides to getting an electrician, plumber, or HVAC license in Montana to understand the full scope of requirements and opportunities. Those licenses are overseen by the Montana State Electrical Board, Montana Board of Plumbers, and Montana Department of Labor and Industry.
What Are the Requirements of a Montana Contractor License?
The requirements for registration as a contractor in Montana are all intended to demonstrate that an individual who will be serving the public is properly prepared to do the job right. To that end, there are insurance requirements and financial prerequisites.
You need a business registration number from the Montana Secretary of State.
Pay all fees.
File evidence of workers' compensation insurance if you have employees. An Independent Contractor can obtain a self-elected workers' compensation insurance policy or an Independent Contractor Exemption Certificate (ICEC).
Certain trade licenses have more extensive requirements. For example, electrical work requires a journeyman electrical license, which takes four years of experience to earn.
How Long Does It Take to Get a Contractor License in Montana?
Since there are no advanced education or experience requirements for contractor licensing in the state of Montana, it’s relatively quick to complete the application process and become registered. For a Construction Contractor registration, the processing time for a mailed application is typically 5-7 business days, though the process can take longer depending on the volume of applications at the time. Independent Contractor processing time takes about 10-15 business days, but sometimes longer depending on the volume of applications the Independent Contractor Central Unit receives.
What Business Owners Need to Know
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How Much Does It Cost to Get a Contractor License in Montana?
The application fee for Construction Contractor registration is $70. The application fee for Independent Contractor registration is $125.
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Montana Contractor License Training Programs and Schools
While Montana does not mandate specific educational requirements for contractor registration, the state offers numerous pathways for professional development and skill enhancement in the construction industry. The absence of mandatory coursework provides flexibility for aspiring contractors to pursue their careers through various educational and experiential routes.
If you choose to start your career path at a college or university, you can pursue a degree in construction management or construction engineering. There are higher education options throughout the state that offer these types of programs. They include:
If you don’t attend any formal schooling or training, but want to learn on the job, you may want to consider an apprenticeship. Apprenticeships represent a dynamic alternative to traditional academic paths, offering practical, on-the-job learning experiences.Through an apprenticeship, you work, accumulate necessary experience, and can earn money all at the same time. The length of time to complete an apprenticeship depends on the trade and program. A list of registered apprenticeship opportunities is available through Montana's Registered Apprenticeship Program. Registered apprenticeship sponsors include:
Does Montana Reciprocate Contractor Licenses?
Since there is no statewide license for contractors, there is no license reciprocity with other states. All contractors are required to register in Montana to legally perform work.
Do I Need to Renew my Contractor License in Montana?
Yes, Construction Contractor registration must be renewed every two years for a nonrefundable $70 fee. Renewal documents will be sent out 60 days before the registration expires. The Independent Contractor registration must be renewed every two years for $125.
Are There Any Penalties for Contracting Without a License in Montana?
Yes. Construction Contractors can be fined up to $5,000 per violation for performing work without a Contractor Registration (CR), performing work with a suspended CR, or transferring their CR to another person.
Independent contractors can be fined up to $5,000 per violation for performing work without an ICEC, performing work with a revoked or suspended ICEC, transferring their ICEC to another person, or misrepresentation of the independent contractor status.
National Certifications
Other certifications can help you demonstrate your proficiency to potential employers and clients. There are many professional organizations that offer certification. These certifications are not required but can add to your marketability and therefore increase your opportunity to make more money.
Some of the top construction certifications are:
Occupational Safety and Health Administration (OSHA) Safety Certificate
Construction Management Association of America Certified Construction Manager (CCM)
National Association of Safety Professionals (NASP) Certified Safety Manager (CSM) certification
National Center for Construction Education & Research (NCCER)
Continuing Education
Though Montana does not require continuing education to renew your registration, you will want to stay informed about emerging technology in the industry. There are many ways to keep yourself current in regard to the technology put to use in construction, roofing, energy and environmental designs, efficiency standards and more. For example, distributors want you to know about their company’s latest offerings and will often hold training sessions about new and changing equipment and parts. Another option is the Associated General Contractors of America (AGC) which provides continuing education courses.
Resources
You can stay up to date on contracting industry news several ways:
Check top blogs, including ServiceTitan’s blog.
Read about the latest industry trends, and discover ideas on how to grow your business.
Listen to top podcasts like ServiceTitan’s “Toolbox for the Trades” podcast.
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