A firm desiring to be licensed as a Class B contractor MUST have a MINIMUM net worth of

A firm desiring to be licensed as a Class B contractor MUST have a MINIMUM net worth of

• A. $15,000.
• B. $5,000.
• C. $50,000.
• D. $100,000.

Answer: (A)

Financial eligibility is about showing there’s enough financial stability to responsibly manage projects. For a Class B contractor license, the firm must have a minimum net worth of fifteen thousand dollars. Net worth means assets minus liabilities, and this figure is verified with financial documents at the time of license application (often prepared or reviewed by a CPA). This requirement helps ensure the licensee can weather cash-flow gaps and complete jobs without risking customers or the board’s oversight. If a firm has less than that amount, it wouldn’t meet the minimum; if it has more, it still qualifies, since the minimum threshold is what matters.

Financial eligibility is about showing there’s enough financial stability to responsibly manage projects. For a Class B contractor license, the firm must have a minimum net worth of fifteen thousand dollars. Net worth means assets minus liabilities, and this figure is verified with financial documents at the time of license application (often prepared or reviewed by a CPA). This requirement helps ensure the licensee can weather cash-flow gaps and complete jobs without risking customers or the board’s oversight. If a firm has less than that amount, it wouldn’t meet the minimum; if it has more, it still qualifies, since the minimum threshold is what matters.