Starting a successful concrete business takes more than knowing how to pour a driveway. Starting a new business requires completing several steps, and obtaining licensing is an important one as it may impact your ability to operate legally.

The question, “what business license do I need to start my concrete business” is a common one, but in reality, your business will likely need multiple licenses, permits, and registrations from federal, state, and local agencies.

Let’s look at which licenses to consider when starting a concrete business.

Related: Guide to starting a concrete business

What Licenses Do You Need to Start a Concrete Business?

State Licensing

Every state is different when it comes to the rules and regulations for contractors. A contractor’s license is required in some states, while others only require licensing for particular trades, such as plumbing or electrical. You’ll want to research the laws in your state to see what services you can legally offer.

Requirements vary by state, however, most require the contractor to at least be 18 years old, have a few years of work experience, pass a written exam, and pass a background check needs to be at least 18 years old, and have two to four years of experience.

A few examples of state licensing includes:

Nevada, which requires a Concrete License through the Nevada State Contractors Board. Licensing requires a minimum of four years of experience, passing an exam, carrying worker’s compensation insurance, and obtaining a bond.

A Concrete License is required before engaging in any concrete work. Licensing is through the Utah Department of Commerce Division Occupational and Professional Licensing and requires contractors to be 18 years old or older, hold a valid driver’s license, social security number, complete a 25-hour course, pass an exam, show proof of general liability insurance ($300,000 minimum) and have registered a business entity.

Louisiana concrete contractors will need to get a Commercial Contractor’s License through the Louisiana State Licensing Board for Contractors. Licensing requirements include a financial statement showing a minimum of $10,000 of net worth, passing the required examinations, and being approved by the board.

 

Local Licensing

Making matters even more confusing, a concrete contractor can be required to be licensed by the state, the state, and city, or county, or just the city or county. It’s also important to know that licensing or registration may be required in each town or county the contractor is working.

A few examples include of local licensing includes:

The City of Rock Island, Illinois, requires a Concrete Flatwork License to complete concrete flatwork (sidewalks and driveways) within the City.

In Chicago, Illinois, a Mason License is required for any commercial work containing concrete, brick, stone, tile, etc.

A Concrete Contractor License and two-year surety bond are required from the Tyler Development services Department to do concrete work in Tyler, Texas, legally.

In addition to concrete-specific licensing, there are also general requirements for starting a business.  While licensing requirements vary by location, here are a few of the common licenses and permits that a concrete business may need:

Entity Formation

When starting a business, the legal entity needs to be selected. A legal entity refers to how a business is organized to operate. There are four main types of entities; sole proprietorship, partnership, corporation, and Limited Liability Company (LLC).

Each type of entity has its own pros and cons, such as liability protection, costs, and administrative requirements.

Related: What is the difference between a sole proprietorship, partnership, Corporation, or LLC?

Business Name Registration

While not necessarily a business license, it’s worth noting that to use a name for a business, many states require the registration of that name. Making matters more complicated, the process of name registration is different by state and the type of business entity.

For instance, sole proprietorships and partnerships generally need to register a business name (also referred to as a Doing Business As, DBA, fictitious name, or assumed name).

Learn: How to register a DBA

Corporations and LLCs register are a little easier because the name is registered when the entity is formed with the state.

General Business License or Permit

Depending on where the business is located, a general business license or permit may be required. A few states require a business license; however, they are more commonly found at the city level.

Learn more: Business license requirements by state

Federal Employer Identification Number

The Federal Employer Identification Number (also referred to as a FEIN, Employer Identification Number, EIN, or Federal Tax ID Number) is a unique nine-digit number that identifies a business with the Internal Revenue Service (IRS).

Any business with employees or those that form as a partnership, Corporation, and in many cases an LLC, the business will need to get an EIN.

Sole proprietors and single-owner LLCs without employees can instead use the owner’s social security number.

Learn: How to get an EIN 

Sales Tax Permit or Business Number

In order to sell products and/or offer certain services, a state sales tax permit (also referred to as a business tax number or tax ID number) may be needed.  This permit creates an account number with the state’s Department of Revenue (or similarly named state taxing agency) to collect and remit sales tax.

It’s important to understand state sales tax as in most states, the contractor pays the sales tax on the supplies used, and in other states, the contractor will charge sales tax of the materials to the customer.  Additionally, in some states, sales tax will be collected on the labor cost of the project.

Learn: How to get a sales tax permit in each state

Resale Certificate

In states where sales tax is charged to the customer, contractors can purchase materials tax-free. A resale certificate (sometimes referred to as a seller’s permit) allows a business to purchase inventory, and instead of paying the sales tax to their vendor, they charge the sales tax to the end-user of the product.

A resale certificate only allows a business to not pay sales tax for items being resold, and sales tax will still need to be paid for supplies or equipment.

Learn: How to get a resale certificate

Certificate of Occupancy

In most communities, a concrete business will likely need to secure a Certificate of Occupancy (CO) before operating in a commercial building.  This certificate is typically obtained from the city and/or the county and allows a business to occupy and operate from a building. Before the certificate is issued, the building will need to comply with zoning regulations, building codes, and any other local requirements.

If the concrete business will be operated as a home-based business, a home occupation permit may be required.

Before purchasing or leasing a location for your concrete business, be sure to check with the local zoning department first to ensure the business can legally operate out of the chosen location.

 

 

The process of identifying all of the licenses and permits necessary to start a concrete business may feel confusing and overwhelming. It is critical to do this right the first time, otherwise, your business may be temporarily shut down until all licenses are obtained.

To make sure your bases are covered, you can do it yourself and contact the city or local economic development office and request assistance. Additionally, there are companies that specialize in business license research, such as Incfile or Corpnet.

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