- 0.1 Nevada Contractors Board License Application
- 0.2 What must your financial statement include?
- 0.3 Which type of License will I need?
- 0.4 How a CPA can help with your Nevada Contractor’s Board Application
- 0.5 Get professional help
- 1 Our Company
Nevada Contractors Board License Application
If you work in construction in Nevada, you must have a valid state license in order to operate legally. This ruling applies to all individual contractors and businesses that carry out work on any building, road, highway, parking facility, railroad, or anything else.
You might not be the owner of a construction company or a multi million dollar business owner; you could be an individual who does occasional small scale construction work such as building garden walls or laying patios. However the rules are still the same. If you take part in any type of construction or building work in any setting, you must have a valid state license. These rules apply to everyone regardless of the scale of their business.
To apply for a license you need to apply to the Nevada State Contractors Board with a prepared financial statement that is based on the monetary limit you are requesting. The information that the board requires will depend on the monetary limit you are asking for. You can apply for a license that enables you to work with up to $10,000. Larger companies who take on larger building and construction projects will need a license that enables them to legally operate with figures in excess of $250,000.
Although applying for a license is fairly straight forward, the Nevada State Contractors Board advises that all applicants should seek the assistance of a certified public accountant (CPA). There is a lot of paperwork involved and the Board will need to see personal statements that disclose and verify working capital and net worth.
What must your financial statement include?
According to the Nevada State Contractors Board your current financial statement must include the following information;
• Financial statement for the applying entity. If you are a sole proprietor, you must submit your personal statement. If your company is run as a partnership, each partner must submit their personal financial statement.
• Your statement must be in U.S. dollars.
• Your statement must include a full disclosure.
• When submitting your business statement it must include a classified balance sheet.
• Your personal statement should be prepared by a CPA and must include a supplemental schedule disclosing working capital and net worth
Which type of License will I need?
You will need to submit additional information depending on the monetary limit of the license you need.
For licenses up to $10,000
If you are applying for a license with a monetary limit of $10,000 you will need to submit a current financial statement. The easiest way to do this is to use an independent CPA. However you can also prepare a current financial statement yourself by using accounting software. This will need to be accompanied by an affidavit that verifies accuracy.
Another option is to submit a business or personal financial statement as long as it is submitted on a form provided by the Board.
For licenses between $10,000 and $50,000
For this license classification you will need to engage the services of an Independent CPA as this is required by the board.
You need to submit either a complied financial statement prepared by an independent certified public accountant within 6 months from the date the application is received.
Alternatively you can submit a financial statement that has been reviewed or audited by an independent certified public accountant as long as this is submitted within one (1) year from the date the application is received.
Licenses between $50,000 and $250,000
The same rules apply to applying for a license in this monetary category as with applying for licenses between $10,000 and $50,000 so you will need to have the assist5ance of an Independent CPA.
Your financial statement should be prepared by your CPA within 6 months of application. You can also use an older financial statement as long as it has been recently reviewed / audited by a CPA within the last 12 months.
Applying for a license with a monetary limit of over $250,000
To apply for a license with a monetary limit of over $250,000 you will need a reviewed financial statement with full disclosures. This must be prepared by an independent certified public accountant within 12 months of the date of application. You can also use a audited statement as long as it has been audited by a CPA within 12 months from the date of application.
In addition, for this monetary level of license, you will need to submit a bank verification statement. Forms are provided by the bank and must be submitted as part of the application process.
How a CPA can help with your Nevada Contractor’s Board Application
To submit an application to the Nevada Contractors Board you do need the services of a Certified Public Accountant. This is a requirement by the board so unless you are applying for the lowest monetary value of license (up to $10,000) you have no alternative than to call in the services of the professionals.
For most contractors it is the best solution regardless of this ruling. Whether you are applying for the first time, renewing your license or increasing the monetary value of the license, this process can be complicated and time consuming. And even if you generally handle your own paperwork, book keeping and accounts, the Board will not accept your submission unless you have a qualified CPA on board to provide and verify your accounts and financial statement.
Get professional help
Whether you are a contractor applying for the first time, renewing your license or increasing your monetary limit, you will need some trained professional help. Let Valor CPS help you submit your license application to the Nevada Contractors Board. Contact Valor CPAs and schedule a free consultation with one of our experts.