Iowa’s cost of living is roughly 15% lower than the U.S. average. With general contractors (GCs) making upwards of $96,000 annually, this gives GCs ample room to enjoy life on the Iowa terrain.
To become a contractor in Iowa, you must register your business with the state. Plumbing, mechanical, HVAC-R, sheet metal, and hydronic systems contractors will need additional licensure.
For a full list of documents you’ll need to become a contractor, keep reading below.
Do You Need a Contractor’s License in Iowa?
Contractors who earn $2,000 or more per year from construction are required to register with the Division of Labor.
Plumbing, mechanical, HVAC, sheet metal, hydronic system services, and refrigeration contractors are also required to get a contractor’s license through the Plumbing & Mechanical Systems Board. These contractors must also be or employ a master-level, licensed tradesman in their field.
Contractor Registration in Iowa
To become a contractor, you’ll first apply for new business registration with the state online. You can easily create an account on Iowa Enterprise A&A and apply using these instructions.
Requirements
To register as a contractor, you’ll need:
- To pay a $50 fee
- If you pay less than $2,000 per year to employees, you may be exempt from this fee
- Proof of worker’s compensation coverage, if you have employees
- Proof of unemployment insurance compliance, regardless of whether you have employees or not
- An unemployment insurance number (you can acquire this here)
- A $25,000 surety bond only for out-of-state contractors
- This bond must be issued on the IA form with the bonding company’s seal and two original signatures
- The company should attach its Power of Attorney form to the document
Iowa Contractor Licenses
Contractors completing plumbing, mechanical, sheet metal, HVACR, or hydronic system work will need a contractor’s license in addition to registering their business above.
You can apply for this license online or request a paper application via mail for $25.
Iowa Contractor License Requirements
To apply for a contractor license, you’ll need to:
- Be 18+
- Complete the application
- Explain any prior criminal proceedings or convictions
- Possess a valid unemployment insurance number, regardless of whether you have employees or not
- Show proof of a permanent place of business
- Hold liability insurance of at least $500,000
- Hold a surety bond of at least $5,000
- This bond is separate from the $25,000 bond requirement for out-of-state contractor registration
- Be or employ someone with a master license in your trade – this person will be responsible for the contracting work (plumbing, mechanical, HVAC, etc.)
- Pay the prorated registration and licensing fees (see the bottom of this page)
Iowa Contractor License Renewals
Licenses can be renewed online. You will do so through your A&A account and can follow these instructions for more details.
Contractor Salaries in Iowa
Contractor salaries depend on the scope of contracting work, licensure, and years of experience. There is also plenty of room for overtime pay to bump up your annual salary.
As mentioned, general contractors in Iowa make around the national average of $96,000+. Below are the five highest-paid cities in IA for GCs.
- Iowa City
- Waterloo
- West Des Moines
- Dubuque
