How to get a contractor license in Delaware
Delaware does not test general contractors on competency. Instead, every contractor doing business in the state must hold a contractor business license from the Delaware Division of Revenue, which is fundamentally a tax registration. Non-resident contractors face the extra step that catches out-of-state companies: a surety bond equal to 6 percent of any contract of $20,000 or more. Electricians, plumbers, and HVACR technicians are licensed separately through the Division of Professional Regulation.
Licensing authority
Delaware Division of Revenue: https://revenue.delaware.gov
When a license is required
There is no dollar threshold: any contracting business activity in Delaware requires a Division of Revenue business license before work begins. The 6 percent non-resident bond applies to single contracts of $20,000 or more, or when contracts in a calendar year aggregate to $20,000. Trade work requires the applicable Division of Professional Regulation license at any amount.
License classes in Delaware
Resident contractor business license
The Division of Revenue license for Delaware-based contractors. Filed with the resident contractor package, renewed with your business license cycle.
Non-resident contractor license
The same business license for out-of-state contractors, plus the 6 percent surety bond on contracts at or above $20,000, payable to the Delaware Department of Revenue.
Trade licenses through the Division of Professional Regulation
Electricians, plumbers, and HVACR technicians hold exam-based licenses from their respective state boards, separate from the Revenue license.
What you need before you apply
- A completed resident or non-resident contractor package filed with the Division of Revenue
- The business license fee and gross receipts tax registration
- For non-residents, a surety bond of 6 percent of each contract of $20,000 or more
- Workers compensation and unemployment insurance registration for employees
- Any county or municipal license the job location requires
- For trade work, the applicable Division of Professional Regulation license
How to get licensed in Delaware
- File the contractor package. Delaware bundles the forms into a resident or non-resident contractors package from the Division of Revenue. It registers you for the business license and gross receipts tax in one pass.
- Post the bond if you are from out of state. Before starting a Delaware contract of $20,000 or more, a non-resident contractor supplies the 6 percent bond with the application. General contractors are expected to verify their subs have complied.
- Check county and city rules. New Castle, Kent, and Sussex counties and some municipalities layer their own licenses or permits on top. The state license does not replace them.
- Sort the trade licenses. If your work touches electrical, plumbing, or HVACR, someone on the crew needs the state trade license from the Division of Professional Regulation, earned by experience and exam.
- Renew with your tax cycle. The business license renews on the state's schedule, and gross receipts filings continue while you operate. Lapsing the license creates tax problems, not just licensing ones.
Reciprocity with other states
The business license is not exam-based, so there is nothing to reciprocate; any contractor can register, and out-of-state contractors mainly deal with the non-resident bond. The trade boards under the Division of Professional Regulation have their own rules for recognizing out-of-state experience and licenses, so trade workers should ask the specific board.
Working without a license
Working without the business license exposes you to fines, penalties, and back taxes from the Division of Revenue, and non-resident contractors who skip the bond can see it withheld from contract payments. Cities and counties can also stop work for missing local licenses. Confirm current fee schedules with the Division of Revenue before filing.
Frequently asked questions
Does Delaware have a real contractor license exam?
Not for general contractors. The state credential is a business license from the Division of Revenue, which is a tax registration rather than a competency test. Exams only appear on the trade side for electricians, plumbers, and HVACR through the Division of Professional Regulation.
What is the Delaware non-resident contractor bond?
Out-of-state contractors must post a surety bond equal to 6 percent of any single contract of $20,000 or more, or of aggregated contracts reaching $20,000 in a calendar year. The bond runs to the Delaware Department of Revenue and backs your state tax compliance. Resident contractors do not post it.
Do handymen need a license in Delaware?
They need the same Division of Revenue business license as any contractor, because it applies to contracting activity at any dollar amount. There is no state handyman exemption to speak of, though there is also no exam. Local jurisdictions may add their own permit or license requirements.
I am a Maryland or Pennsylvania contractor taking one Delaware job. What do I need?
File the non-resident contractors package with the Division of Revenue, get the business license, and post the 6 percent bond if the contract is $20,000 or more. Check the county and town for local licenses too. Delaware GCs are expected to verify sub compliance, so expect the paperwork to be requested.
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