Contractor Registration

Apply for a new contractor registration or renew your registration online.

Construction contractors must register with the state:

Iowa law requires all individual “Construction Contractors” and businesses performing “construction” work to be registered with the Department of Inspections, Appeals, and Licensing (DIAL) if they earn at least $2,000 a year from construction. Individuals or businesses making less than $2,000 a year on “construction” work, or who work only on their own real estate or property, are not required to register.

Contractor Registration

There is a $50 application fee. Credit card or ACH payments will not be accepted over the phone.

Contractor registration and renewal guidelines

Check a contractor license

There is a $50 application fee. Credit card or ACH payments will not be accepted over the phone.

If you have employees, you are also required to carry a Certificate of Workers' Compensation. You are also required to carry a $25,000 bond.

Definition

The definition of “construction” is very broad. Carpenters, electricians, plumbers, roofers, painters and many others must register. View a list of the types of work that are included under the definition of “construction”.

If your business provides any type of plumbing, mechanical, HVAC, refrigeration, sheet metal or hydronic systems services, you are required to obtain a license with the Plumbing & Mechanical Systems Board. Complete a joint application for a 3-year registration and contractor license. You are not required to also complete an online or paper application application with Contractor Registration.

Do sub-contractors have to be registered?

Yes. Sub-contractors are not covered under the general contractor's registration.

What if I operate more than one business?

You must register each construction business that has a separate federal identification number.

Do I have to renew my registration number?

Yes. Your registration must be renewed every year. The month before your registration expires, a renewal form will be sent by mail or email. To renew use the New Application/Renewal form, mark “renewal” and write your current contractor registration number where indicated.

What if the information on my registration changes?

Notify the Iowa Division of Labor in writing if the information on your application changes. Failure to do so may result in penalties.

Will I have the same registration number every year?

Yes. If you renew your registration on time, you will keep the same registration number.

What if I incorporate my business?

If you first applied as a sole proprietor or partnership and then incorporate your business, you must re-apply as a new business and be issued a new contractor registration number.

Is a bond needed to perform construction work in Iowa?

With few exceptions, each contractor with a principal place of business outside of Iowa must file a $25,000 bond in order to register. Having a branch office in Iowa does not exempt a contractor from the bonding requirement.

The bond guarantees that taxes, penalties, and other payments due to the State of Iowa as a result of your work are paid. Only the State of Iowa and its agencies may collect on the bond.

Are out-of-state sub-contractors covered under the general contractor's registration and/or bond?

No. Subcontractors must register and have their own bond.

What kind of bond must I have?

Bonds must be issued on the Iowa Division of Labor Bond Form by a surety company licensed to do business in Iowa.

What happens to the bond after I quit working in Iowa?

Your bonding company may send a written request to the Iowa Division of Labor asking that your bond be released.

What are the penalties if I don't comply?

Violators may receive a $500 citation for a first violation. A citation up to $5,000 may be imposed for a repeat violation.

Are there any other requirements for contractors working in Iowa?

Visit the Iowa Department of Revenue for information on Iowa sales/use tax requirements for construction contractors. You may also need to register as an electrician with DIAL or with the Iowa Plumbing and Mechanical Systems Board as a plumber. You may search for other licensing requirements in Iowa. Contact the city or county government for each project to determine local requirements.

Laws & Rules

Contractor Registration was adopted into law in 1988 through Chapter 91C to ensure that employers are complying with workers' compensation and unemployment insurance tax laws.

Laws. Laws are contained in the Iowa Code. They are enacted by the Iowa legislature and provide statutory authority to the licensure boards.

Administrative rules. Boards adopt rules to interpret and implement the Iowa Code. Administrative rules have the force and effect of law.