South Dakota to Iowa: general contractor license reciprocity

1. 1Application fee. Pay the application fee ($50). Contractor registration fee: $50 per year, or $150 for a three-year registration, non-refundable. Registration renews annually, and a renewal form is sent by mail or email the month before expiry; renewing on time keeps the same registration number. A self-employed contractor who does not pay more than $2,000 a year to employ other people and does not work with or for other contractors in the same phase of construction is fee exempt and files a fee exemption form, which must be filed again at each renewal. Credit card and ACH payments are not accepted over the phone. A contractor registering through the Plumbing and Mechanical Systems Board's joint application pays a fee prorated to the length of that licensing period instead..
2. 2Surety bond. Post a surety bond ($25,000). Out-of-state contractor bond: a $25,000 surety bond on DIAL's own bond form, from a surety company licensed to do business in Iowa, required of every contractor whose principal place of business is in another state, and of every out-of-state subcontractor in its own name. The bond is continuous until the surety cancels it on at least 30 days' written notice to both the contractor and DIAL, and guarantees payment of all taxes, unemployment compensation contributions, penalties, interest and related fees accruing to the State of Iowa from the work. Only the State of Iowa and its agencies may collect on it. DIAL may order the amount increased after a hearing where the state's tax exposure exceeds it. A contractor prequalified by the Iowa Department of Transportation to bid on its projects may file that letter instead. Release requires a written request from the surety and clearance from the department of revenue and the unemployment insurance services division..
3. 3Insurance. Carry the required insurance. Workers' compensation: a certificate of insurance from the carrier showing the effective dates of coverage and naming the Department of Inspections, Appeals, and Licensing as certificate holder, filed every year. A self-insured employer files the commissioner of insurance's release under Iowa Code 87.11, and a contractor with no employees files a statement that it is not required to carry coverage. The insurer must notify DIAL of cancellation, the contractor must give DIAL ten days' notice before any change in coverage, and a lapse is grounds to revoke the registration after a fact-finding interview..
4. 4Business license. Obtain a business license. An Iowa unemployment insurance employer account number from the unemployment insurance services division of Iowa Workforce Development, obtained before the registration application is filed. It is required of in-state and out-of-state contractors alike, even those with no employees. The application also needs a federal employer identification number for a business entity, or the owner's Social Security number for a natural person, and the business's NAICS code or a description of its principal products and services..
5. 5Other. The registration application, filed through DIAL's online contractor registration portal or on the department's paper form, giving the business name, the mailing address of the principal place of business, the business telephone number, the entity type and the name, address, telephone number and position of each corporate officer or each owner. The registration number - the letter C followed by six digits - issues within 30 days of a complete application, is a public record, and must be obtained before any construction work is performed in Iowa..
6. 6Other. Separate trade licensing where the work calls for it. Registration does not authorize plumbing, mechanical, HVAC, refrigeration, sheet metal or hydronic work, which needs a contractor license from the Iowa Plumbing and Mechanical Systems Board under chapter 105 - obtained on a joint application that issues the contractor registration number at the same time - or electrical work, which needs a license from the Iowa Electrical Examining Board under chapter 103. Asbestos, lead-based paint, elevator, boiler, alarm system and fire protection system work each carry their own DIAL credential. A general contractor usually meets these by subcontracting to, or employing, the appropriately licensed firm..
7. 7Other. Registration before permits and before public contracts. A state or local official may not issue a building permit, certificate or authorization to a contractor who is required to hold a contractor registration number and has not obtained one, and a contractor who is not registered may not be awarded a contract to perform work for the state or a state agency. DIAL also directs contractors to contact the city or county government for each project to confirm local requirements, and the Iowa Department of Revenue publishes the sales and use tax rules that apply to construction contractors..

Published fees on this path total $50, excluding exam-vendor fees, bonds, and insurance.