Two of the most common questions we get from new sealcoaters are
"Do I need a business license to operate an asphalt maintenance company?
and
"Do I need an occupational license, too?"
Read our answers below to learn more about this topic.
What is a Business License?
A business license is issued by the government allowing you to operate a sealcoating business in a certain area. It is sometimes issued by the state government. But in most cases, you can obtain it from the county or municipality where your asphalt repair business is operating.
Related: The 3 Biggest Asphalt Business Trends that may Derail Your Business Plans for 2022
Do You Need a Business License to Start a Sealcoating Company in Your Area?
Business license regulations for sealcoating businesses vary from state to state. Some states do not require business licenses at all, while others do. The states that require you to obtain one are the following:
Do you live in states other than the ones mentioned above? Then inquire with the county or municipality where you plan to start your sealcoating business about obtaining a license in their jurisdiction.
What is an Occupational License?
An occupational license is a license issued by the government that allows a person to practice their occupation in a certain jurisdiction. The purpose of an occupational license is to prove that you have
- Completed training that will prepare you to work in that occupation
- You have passed the exam needed to obtain your license
Makeup artists, hairstylists, florists, auctioneers, and funeral attendants also need to secure one first before they can offer their services.
Do You Need an Asphalt Maintenance Occupational License in your Area?
The answer depends on where you plan to set up your sealcoating business. If your business operates in California or Mississippi, then you must obtain an occupational license.
In California, you need to obtain a C-32 Parking and Highway Improvement Contractor license before you can offer your services. Check out this page to learn about it.
Operating in Mississippi? Then read this page first and scroll down to 'crack sealing/pavement sealants.'
Sealcoating contractors who wish to operate in Arizona and employ someone else with necessary experience may apply for a contractor's license. Read the Arizona Registrar of Contractors License Classifications page for more information.
What's Going to Happen if You Don't Obtain a Business and Occupational License Prior to Operating a Sealcoating Business?
In places where obtaining a business and occupational license is required, the government can compel you to stop offering sealcoating and crack repair services until you get one.
But some jurisdictions are more strict about businesses operating without a license than others. In some cases, you have to wait for months or even years to obtain a license after you've been found to have violated the state, county, or municipality licensing laws.
Related: Getting Your Asphalt Sealcoating Machine Ready
Even worse? The state, county, or municipality where you are operating can refuse to issue you a business or occupational license altogether.
In some instances, you may also be fined by the authorities and could possibly face lawsuits for operating without a license.
Conclusion
Asphalt maintenance is a pretty easy business to get into, but you have to make sure to do it right the first time to avoid being penalized or worse, being forced to close your business permanently. Feel free to browse our blog for more sealcoating business information, or reach out to us for free additional sealcoating business advice. If you're just starting out, then immerse yourself in Asphalt Kingdom's comprehensive Build Your Own Business Blueprint to learn everything about asphalt maintenance.
