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Residential contractor license renewal FAQ and common mistakes



Frequently asked questions (FAQs)

 

Where do I get my renewal forms?
Download the renewal forms packet here.

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What forms do I need to submit?

It is extremely important that all of the required documents are submitted as a single submission, whether uploaded through the online renewal process or mailed in a single package. Do not mail, fax, or e-mail any of these required documents separately from the others, as this will only delay or even prevent to timely processing of your renewal.

A complete renewal submission must include ALL of the following:

  1. Residential license renewal form
  2. Qualifying person designation form
  3. Disclosure of business owners, partners, officers and members
  4. Certificate of compliance Minnesota Workers' Compensation Law
  5. Liability insurance certificate (may be DLI form or ACORD 25 form - consult an insurance agent for the appropriate insurance certificate)
  6. Secretary of State filing must be current - provide proof that your business filing is active. A hard-copy of the page on the Secretary of State's website showing the business filing is sufficient.

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What fee do I need to pay?

For completed license renewals that are received by DLI on or before March 31, the fees are as follows:

If gross annual receipts are less than $1 million, the renewal fee is $690.
If gross annual receipts are between $1 and 5 million, the renewal fee is $790.
If gross annual receipts are more than $5 million, the renewal fee is $890.

Jan. 1, 2012, a new law requiring the payment of late fees for all DLI license types went into effect. As a result, a late fee of $90 will automatically be assessed when a completed renewal is not received in DLI's offices by the license expiration date of March 31. By law, a completed license renewal submitted by March 1 is automatically deemed to be a timely renewal. DLI cannot guarantee that renewals submitted after March 1 will be processed prior to the expiration date, and a license cannot be considered to be renewed until it is completely processed and approved by DLI. Submit renewals as early as possible to avoid delays and a possible lapse in licensure. After March 31, municipalities cannot issue building permits to contractors whose license renewals have not been processed and approved.

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What is a Secretary of State filing?
Those licensed as a corporation or limited liability company (LLC) or those individuals doing business using an assumed name (or "dba"), are required to file the business with the Office of the Secretary of State and keep that filing up-to-date by submitting an annual renewal to the Secretary of State. This is a business filing that is separate and distinct from the license renewal, but is necessary to maintain in order to renew the license. The Secretary of State filing allows operation as a business in Minnesota while the license allows holders to act as a residential building contractor, remodeler, roofer or manufactured home installer. A license cannot be obtained or renewed without an active Secretary of State filing for the business. The status of a business filing may be checked, and instructions for renewing it obtained, at the Secretary of State’s website.

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How do I sign the renewal form if I'm renewing online?

To renew online, licensees will need to print the forms, sign them where necessary, and then scan and upload the forms. To ensure prompt processing, please scan all required documents together as a single electronic file, preferably a pdf.

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What is a "registration" number"?

Another part of DLI's new licensing system is intended to make it easier for the qualifying person for a contractor's license to track their continuing education status. Continuing education providers are now required to report licensees' attendance directly to DLI. This information is stored on a new record that has been created in our system for each individual who is qualified to act as a qualifying person for a residential building contractor, remodeler, roofer or manufactured home installer. This enables DLI to track a qualifying person's continuing education status independent of the business license record of a company for which they are the qualifying person, even if they are not designated as an active qualifying person for a company's license.

A registration number is not a separate license and it does not allow an individual to act as a residential building contractor, remodeler roofer, or manufactured home installer unless they hold an actual license. Registration numbers begin with the letters QB, QC, QR, or QI and are followed by six digits. License numbers begin with BC, CR, RR, or MI and are also followed by six digits.

Registration numbers can be found using DLI's online License Lookup. Use the "business" license lookup to find the company's license record. Once that license record is shown, the registration number is found in the section highlighted in the example below:

 

License/Certificate Detail

 

License Type:

RESIDENTIAL BLDG CONTRACTOR       

License No:

BC999999

Application No:

999999       

Status:

ISSUED

Expire Date:

3/31/2012

Effect Date:

Orig Date:

1/01/1992

Print Date:

10/7/2011

Enforcement Action:

NO


Name:              

TWINS LUMBER COMPANY

Address:

1 TWINS WAY

MINNEAPOLIS , MN 55403


Business Relationship Requirements


Name:             

GARDENMAUER, JUSTIN       

Lic/Reg No:

QB999999

Status:

ISSUED

Application No:

999999

Expire Date:

3/31/2012

Effect Date:

Orig Date:

1/01/1992

The "Lic/Reg No:" starting with the letter Q on the company's online license record is the number to enter in the space where the "registration number" is requested.

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Why do I have to fill out the designated qualifying person form?

In many companies, the qualifying person is not the owner of the company and may not be the person submitting the license renewal on the company's behalf. The designated qualifying person form confirms that the licensee's qualifying person continues to be qualified to act as the company's qualifying person and agrees to certain notice requirements in the event the qualifying person leaves the company.

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How long does it take for my renewal to be processed?

Renewals submitted online can be processed about one week sooner than those submitted by mail. All renewals must be reviewed by DLI staff, so to minimize delays, ensure that all required information is submitted completely and accurately. If a renewal requires corrections it will take longer to process.

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What do I do if I've changed the structure of my business?

If a business structure has changed (for example, from an individual proprietorship to a corporation or from an LLC to a corporation) a new business entity has been created which requires applying for a new license. The exam doesn't need to be retaken nor does extra continuing education need to be logged, but a new license with a new license number must be obtained for the new business entity.

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How can I find out about changes to the laws that regulate the construction industry and changes at DLI that affect my business?

CCLD publishes a quarterly, electronic newsletter called the CCLD Review. Visit www.dli.mn.gov/CCLD/Review.asp to view current and past issues and to sign up to receive an e-mail notice when a new edition is available. Subscribers will also receive occasional messages about educational opportunities and industry changes.

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Common renewal mistakes

Every year the processing of building contractor license renewals is slowed considerably by the high number of contractors who submit renewals that are incomplete or not completed properly. These deficiencies slow down the entire renewal process for all licensees. These delays can result in a license not being issued prior to expiration, leading to problems obtaining permits. To ensure a renewal is processed in a timely manner, please avoid these common mistakes, whether renewed online or by mail:

Failing to include ALL required forms as one submission.
A renewal submission should include all of the following forms, filled out completely and signed where required. Ensure that ALL of these documents are provided as a single submission, whether uploaded online or mailed. Significant delays in processing will occur if one or two documents are sent separately.

  1. License renewal form.
  2. Designated qualifying person form. This form is to be signed by the QP.
  3. Certificate of compliance of Minnesota Workers' Compensation law.
  4. Liability insurance certificate (may be DLI form or ACORD form - consult an insurance agent for the appropriate insurance certificate)
    • Obtain the insurance certificate from your insurance agent before submitting the renewal. DO NOT have the agent submit the insurance certificate separately. This will delay processing and slow down the renewal process for others.
  5. Copy of the current business filing from the Secretary of State's Web site.

Improper liability insurance certificate
On the liability insurance certificate, the name of the "Insured" should be listed exactly the way the business name appears on the license and how the business is registered with Secretary of State. If a business name has an "LLC" or "Inc." at the end, it should be printed that way on the insurance certificate.

Also, DLI must be listed as a "certificate holder" on the insurance certificate. The area reserved for "Certificate Holder" must read:

Minnesota Department of Labor and Industry
CCLD Licensing and Certification Services Unit
443 Lafayette Road N.
St. Paul, MN 55155

Licensees should also make sure that the insurance certificate is up-to-date and lists a policy expiration date at least one month from the date on which the renewal application is to be submitted

Wrong fee paid
The online renewal system will not allow licensees to complete a renewal unless the correct fee is paid. However, for mailed renewals, including the wrong fee will delay the processing of the renewal. The renewal fee for most contractors is $690. The fee increases to $790 if the company's gross annual receipts are between $1 and $5 million, and it is $890 if the company grosses more than $5 million in a year.

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