There are different types of entities / companies you can choose to issue your Contractors License to. Here are the five types you can choose from: 

Sole ownership

This is what most contractors refer to as their personal license but is actually still a “company” license which is the sole ownership entity. However, as a sole ownership, your personal assets are not protected, and only the sole owner is allowed to be listed on the license other than a Responsible Managing Employee.  

Corporation

This is the best type of entity to have. Your personal assets are protected in case of a lawsuit. The Contractors Board also allows for changes to the listed personnel at any time - you can add, replace, or remove officers listed on the license. Corporations are required to be registered with and hold an active status with the Secretary of State and listed officers must appear on the contractors license. A $15,000 Contractors Bond must be filed along with a Workers Compensation policy or exemption. A Contractors Bond’s premium will usually cost around $200 for a 2-year term.

llc

A Limited Liability Company (LLC), in addition to the above requirements for corporations, is required by the Contractors Board to post a General Liability policy, and a special $100,000 LLC Surety Bond to have an active license. The premium can cost anywhere from $2,000 to $10,000 for a 1-year term. This special bond makes licensing an LLC more costly. It offers the same protection as a corporation, and also allows for changes to the listed personnel at any time. 

partnership

If you are a partnership entity, keep in mind there are limitations in the changes you can make. The Contractors Board does not allow you to add, remove or replace the original personnel listed on the license. This makes a partnership license non-transferable. In the event of a partner retiring, disassociating, or dying, this license will be cancelled! Listed general partners who have kept the license active for at least five (5) years are eligible to waive the exams and become the qualifying individual. Then you can get a separate new personal license. Protect your future and qualify before the partnership is cancelled.

joint venture

A joint venture isn't really a stand-alone entity. This is a license that's issued between two existing licensed entities, usually for the purpose of a temporary job, when either companies have license classifications they need to get the project done. No work experience credit is granted by being listed on a joint venture. It is, however, a lot faster to get a license issued for a joint venture since there is no fingerprinting requirement for this type of license.