Landscape Contractor License for CORPORATE license ($10,000) Bond - Statewide in North Carolina
Table of Contents
Brief Summary
Your individual license bond does not cover your company. If the business is a corporation, LLC, partnership or uses an assumed name, it needs its own corporate license and a corporate bond on Board Form SB01. We write that $10,000 corporate bond so the company can contract legally above the $30,000 threshold.
North Carolina businesses that do landscape construction as a corporation, LLC, partnership or under an assumed name need a corporate license from the North Carolina Landscape Contractors' Licensing Board and a $10,000 corporate surety bond. The bond lists the licensed individual and the company as principal and must stay in force while the license is active.
We can help with all North Carolina bonds!
How to Apply for a Landscape Contractor License for CORPORATE license ($10,000) Bond:
- Confirm at least one officer, manager, partner or full time employee holds an individual North Carolina license.
- Complete the corporate license application, Form CL002, with the $100 fee.
- Attach the latest annual report from the NC Secretary of State, or the Articles if the entity is new.
- Obtain the $10,000 bond on Form SB01 marked Corporate, listing the licensee and company as principal.
- List every individual licensee the bond covers and send a copy with each covered individual's application.
- Report any change in working arrangement and file bond changes within 30 days.
Detailed Information About the North Carolina Landscape Contractor License for CORPORATE license ($10,000) Bond:
A corporate license needs a corporate bond
The Board says a business operating as a corporation, LLC or partnership, or under a name other than the owner's personal name, must carry a corporate license. A sole proprietor using a trade name is the exception only if the name is registered with the county Register of Deeds as a DBA. The Board also states that businesses without a corporate license and corporate surety bond offering or providing services in excess of $30,000 at a site in a year are operating as an unlicensed business.
How the corporate bond is written
The bond uses Board Form SB01, the North Carolina Landscape Contractors' Licensing Surety Compliance Bond, with the Board as obligee. For a corporate bond, the principal is the licensed individual's name and the company's name, and the form lists every individual NC licensed contractor the bond covers. A copy goes in with each covered individual's license application. If the qualifier also works under his or her own name, a separate Individual Bond is required too.
The licensed qualifier
Under G.S. 89D-17, at least one officer, manager, partner or full time employee must hold an individual license, and only licensed persons may sign contracts and supervise the work. If that person leaves, the business has 120 days to replace them, which the Board may extend, or the corporate license is suspended.
What the bond guarantees
The surety protects anyone who suffers loss because the principal, or its officers, employees or agents, failed to follow Chapter 89D or the Board's rules. It also requires defects caused by a violation to be fixed at no cost within one year of the work and within 48 hours after notice from the Board.
Keeping the license active
Corporate licenses run August 1 to July 31 and renew for $100. Renew the qualifier's individual license first, and attach the latest annual report filed with the NC Secretary of State. Under 21 NCAC 28B .0204, notify the Board within 5 days if the bond lapses. If it is not replaced within 30 days, the license is revoked.
Eligibility and Requirements for a North Carolina Landscape Contractor License for CORPORATE license ($10,000) Bond:
- Bond amount of $10,000, or a $10,000 irrevocable letter of credit from a bank.
- North Carolina Landscape Contractors' Licensing Board named as obligee.
- Corporate surety authorized to do business in North Carolina.
- Original bond mailed to the Board at PO Box 20875, Raleigh NC 27619.
- Continuous coverage, with written notice to the Board within 5 days of any lapse.
North Carolina Landscape Contractor License for CORPORATE license ($10,000) Bond FAQs:
Yes, if the company is a corporation, LLC or partnership or uses an assumed name. The Board requires a corporate license and a corporate bond listing your name and the company's name as principal.
Not if the trade name is registered with your county Register of Deeds as a DBA. In that case your Individual Bond lists your name d/b/a the company name.
Notify the Board. Under G.S. 89D-17 the business has 120 days, extendable by the Board, to bring on another licensed individual. Otherwise the corporate license is automatically suspended.
Form SB01 has a section to list all individual NC licensed contractors the corporate bond covers, and a copy goes with each covered individual's license application.
The license year runs August 1 to July 31. Renewal is $100. Renewals after August 1 add a $100 reinstatement fee and a $25 late fee.
