Residential contractors or remodelers, however, need to obtain a license but don't need to be registered at a state level. In order to obtain a license you are required to: Show proof of insurance General Liability and Workers Compensation. Pass trade, business and law exams.

Should a contractor be licensed?

In NSW, your business needs a contractor licence if they want to contract, sub-contract or advertise for: Residential building or trade work where the reasonable market cost of the labour and materials is more than $5,000 (Including GST)

What makes a contractor licensed?

What Does Being a “Licensed” Contractor Actually Mean? If a contractor is licensed, it means that they have a legitimate claim to be a professional in their industry. They are making a legitimate career out of this profession, and are not simply making a quick cash grab.