How to Get a Contractor License in Arizona

• Education requirement: No formal pre-license education required. Must pass a trade exam and business management exam.. Many providers offer online options, giving you flexibility to study on your own schedule.
• The licensing exam: The Arizona Contractor License Exam is administered by PSI. You'll need to score at least 70% on each section to pass. Study materials and practice exams are available from most education providers.
• Background check required: Arizona requires a criminal background check as part of the application process. Plan for additional processing time and fees.
• Online application available: Arizona accepts online applications, which can speed up processing time.
• Ongoing requirements: Once licensed, you'll need no continuing education hours every 2 years. No continuing education required for renewal.

How Arizona Compares

Arizona does not require any pre-license education hours. The average total cost in Arizona is around $750, compared to the national average of $404. Arizona's 2-year renewal cycle is longer than the national average of 1.5 years.

• Choose your education provider carefully: Compare prices, format (online vs. in-person), and reviews. Some providers offer exam prep materials bundled with the course, which can save you money. Check the Arizona Registrar of Contractors (ROC) website for a list of approved providers.
• Don't rush the exam: Since no pre-license education is required, you can focus directly on the application and exam process. Use practice exams to identify weak areas before scheduling your test date.
• Get your insurance and bonding lined up early: Must designate a qualifying party with at least 4 years of experience General liability insurance and a surety bond are typically required. Shop multiple providers and consider joining a local contractors' association for group rates.
• Budget for startup costs beyond licensing: Beyond the $500-$1,000 licensing cost, plan for insurance premiums, bonding, tools and equipment, vehicle costs, and marketing. Most new contractors should budget an additional $5,000-$15,000 for their first year of business expenses.
• Budget approximately $1,000 for your Arizona license: This includes $350 in application fees, $80 for the exam, and education costs. Once licensed, plan for $300 in renewal fees every 2 years.