|
Bonding Requirements for out-of-state contractors:
Virtually all contractors with a home office outside of Iowa
must post a bond prior to issuance of a contractor registration
number.
Click here for more details and the bond form that must be
used.
Sales tax and the construction industry:
Click here for information on Iowa sales/use tax
requirements for construction contractors. You may need to
obtain a sales/use tax permit from the Iowa Department of
Revenue.
|
The State of Iowa requires that “construction contractors” register with
the Iowa Division of Labor, and renew that registration annually.
The law is found in Chapter 91C of the Iowa Code.
Who must be registered?
The law requires that all individual contractors and businesses
performing “construction” work within Iowa be registered with the
Division of Labor if they earn at least $2,000 a year from that work.
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.
How is construction defined?
All contractors performing “construction” work must be registered. Even
if construction work is only incidental to your business, you still must
be registered so long as you make
at least $2,000 a year from the “construction” activities.
For example, employee leasing agencies that send employees to work
construction and retail operations that install or hire subcontractors
to install the goods they sell need to register. The
definition of “construction” is very broad and includes carpentry, electrical, plumbing, roofing, house
painting, landscape and lawn sprinkler installation, cable television
installation, elevator and boiler installation, window and door
installation, and many other types of work. You may view the list of
different types of work that fall under the definition of “construction”
in the “Definition of Construction," Administrative Code 871.23.82,
available on the left side of this page.
What do I need to do to get registered?
Print and complete the application form below. Mail or deliver the
completed form with all necessary attachments to 1000 East Grand Avenue,
Des Moines, IA 50319.
Could I be exempt from the $50 registration fee?
While all contractors must register, it is possible to be exempt from paying the $50
registration fee. A self-employed contractor who does not pay more than
$2,000 annually in wages to others working with them, and who does not
work with or for other contractors in the same phase of construction,
may be exempt under Iowa law. If you meet the criteria and do not have
to pay the $50 fee, please complete the
Fee Exemption Form,
have it notarized and include it with your registration.
Is a bond needed to perform construction work in Iowa?
If your principal place of business is located outside the State of
Iowa, you must file a $25,000 surety bond to register. Having a branch office in Iowa does not make you an in-state
contractor if your business is principally based outside of Iowa. You
may download the bond form below.
What if I have other questions?
See the “Contractor Registration Questions and Answers” located on the
left side of this page.
