A STEP-BY-STEP GUIDE TO BECOMING A LICENSED HOME IMPROVEMENT CONTRACTOR IN PENNSYLVANIA

Are you passionate about transforming homes and want to turn your passion into a rewarding career? Are you self-employed and offering home improvement or repair services? Did you know that a homeowner simply performing a home improvement project technically requires registration with the Pennsylvania Attorney General’s Office? Anyone who owns or operates a home improvement business or who offers, performs, or agrees to perform home improvements in Pennsylvania must register with the Office of Attorney General unless they are specifically exempted under Pennsylvania’s Home Improvement Consumer Protection Act (“HICPA”).

Becoming a home improvement contractor in Pennsylvania can open doors to a thriving industry where you can showcase your skills and creativity while maintaining a level of autonomy over your career that may have seemed unattainable in the past. In this blog post, we will provide you with a comprehensive guide on how to navigate the process of becoming a licensed home improvement contractor in the Keystone State.

STEP 1 – Understand the Licensing Requirements

Before embarking on your journey as a home improvement contractor in Pennsylvania, it's crucial to familiarize yourself with the state's licensing requirements. In Pennsylvania, any contractor performing work valued at $5,000 or more is required to hold a Home Improvement Contractor (HIC) license. To obtain this license, you must meet the following criteria:

§ Complete an Application – Visit the Pennsylvania Attorney General's website to access the HIC application form;

§ Provide Necessary Documentation – Prepare your identification, proof of liability insurance, financial statements, and any other required documents as specified on the application form; and

§ Submit the Application and Fee – Once you have completed the application and gathered the necessary documents, submit them along with the application fee to the Pennsylvania Attorney General's office.

STEP 2 – Register your Business 

To operate legally as a home improvement contractor, you need to register your business with the Pennsylvania Department of State. This typically involves choosing a business name and selecting a business structure (e.g., sole proprietorship, LLC, corporation). It's important to understand the legal and tax implications of each business structure and consult with a professional if necessary.

STEP 3 – Acquire the Required Insurance Coverage

As a home improvement contractor in Pennsylvania, it's essential to protect yourself and your customers by acquiring the necessary insurance coverages. The state requires contractors to carry liability insurance covering personal injury in an amount not less than $50,000.00 and general liability insurance covering property damage caused by the work of a home improvement contractor in an amount not less than $50,000. These insurance coverages protect you from potential lawsuits or damages resulting from accidents on the job. Moreover, these insurance coverages provide peace of mind to your customers knowing you can make them whole in the event of an unfortunate situation. Please note these coverage amounts are minimum state requirements, and we often recommend acquiring coverages in excess of these amounts based on your specific operations. 

STEP 4 – Network, Network, Network

The importance of networking in today’s professional landscape cannot be stressed enough. Your home improvement contractor business will live and die at the hands of your customer base. Professional networking can take many forms, including attending industry events, participating in online communities, joining professional associations, and seeking out mentorship or coaching. Most importantly, make sure you are present in your community. 



By following the steps outlined in this guide, you can navigate the process with confidence. Remember to research and comply with all the state's licensing requirements, obtain the necessary insurance coverage, register your business, and build a strong network.

If you are an individual already operating a home improvement business without a license or are considering becoming a home improvement contractor, call us now to schedule a hassle-free, no-cost consultation to discuss your situation in greater detail.