Moving to Arkansas as a general contractor: every state's rule

1. 1Law / code exam. Pass a law, rules, or code exam. Arkansas Business and Law examination, taken by the qualifying party and scheduled with PSI Services LLC: 50 multiple-choice questions, two hours, open book, tested only from the NASCLA Contractors Guide to Business, Law and Project Management, Arkansas Edition. The passing mark is 35 correct answers (70%). The license can be approved but not released until the passing score is on file..
2. 2Exam fee. Pay the exam fee ($84). Paid to PSI when the Arkansas Business and Law examination is scheduled, for each attempt. Examination fees are not refundable or transferable. The NASCLA Accredited Examination, if used, is booked and paid for separately through NASCLA; the Board does not publish that fee..
3. 3Trade exam. Pass the destination's trade exam (if applicable). Optional NASCLA Accredited Examination for Commercial General Building Contractors, accepted by the Board in place of five years of experience: 115 questions, 330 minutes, open book, minimum passing score 81..
4. 4Application fee. Pay the application fee ($100). Non-refundable, non-transferable filing fee for a Commercial New Application, payable to the Contractors Licensing Board by check or money order..
5. 5Other. Three reference forms, completed by the referees themselves and no more than 90 days old, verifying the experience behind each classification or specialty requested. References from a supplier or banker are accepted only if that person has seen the work. Not needed for a classification granted on a passed examination instead of experience..
6. 6Background check. Complete a background check. The application asks whether the business, its officers, its qualifier or anyone owning 10% or more has ever pleaded guilty or no contest to, or been convicted of, a felony or misdemeanor other than a traffic violation; each yes needs a Criminal Background Information form, and signing the application authorizes the Board to obtain a criminal background check. A yes answer does not automatically disqualify. A waiver may be requested under Ark. Code Ann. § 17-3-102, and anyone with a record may petition the Board before applying for a decision on whether it would disqualify them..
7. 7Surety bond. Post a surety bond ($10,000). Fully executed $10,000 contractor's surety bond in the principal name and EIN registered with the Secretary of State, filed with the power of attorney. The surety must be authorized to do business in Arkansas..
8. 8Financial responsibility. Show financial responsibility of at least $50,000. Financial statement from an independent CPA, less than one year old: a compiled report for a Restricted license, or a reviewed or audited one for an Unrestricted license. The Building classification needs business net worth of at least $50,000, half of it ($25,000) as cash in the bank rather than receivables or a stockholder note, and a new applicant must show positive working capital. The license expiration date is set by the date of the financial statement..
9. 9Surety bond. Post a surety bond ($500,000) (if applicable). Optional surety bond in lieu of the financial statement under Ark. Code Ann. § 17-25-304(c), for ten times the required net worth, so $500,000 for the Building classification. It does not replace the $10,000 contractor's bond..
10. 10Insurance. Carry the required insurance. Current certificate of workers' compensation insurance if the business has one or more employees..
11. 11Business license. Obtain a business license. A corporation, LLC, LP or LLP files its Articles or filings from the Arkansas Secretary of State's office with the application, together with any fictitious name registration; the bond must be in that registered name and EIN..

Published fees on this path total $184, excluding exam-vendor fees, bonds, and insurance.