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Building in Arizona | What Out of State Contractors Need to Know
Published February 16th, 2016

Having a shot at a contracting job in another state can be a surprisingly lucrative opportunity, especially if you conduct business near state borders. Unfortunately, contracting licenses don’t transfer from one state to another. However, for skilled contractors from out of state looking to make the move into Arizona, it might prove to be their best business move to date.

Why Arizona?

The housing crisis hit Arizona hard, but unlike many areas in the United States, the state has been making a major comeback in commercial and residential construction. In fact, the state’s largest problem now is finding enough skilled contractors and labors to keep up with all the new projects with nearly 200,000 of the contractors and other workers moving on to other states or other jobs.

Getting a Contracting License in Arizona

Like in most other states, getting a contracting license in Arizona requires applicants to pass the Business Management (BME) exam as well as a trade-specific exam. As a license also requires several years of prior experience in the desired field, passing the test should be no problem.

After passing the licensing exams, out of state contractors coming to Arizona will need to:

  • Register a company name with the  Registrar of Contractors (ROC) and Arizona Corporation Commission (ACC)
  • Apply for a federal employer identification number
  • Apply for a state transaction privilege tax number with the Department of Revenue

Like in other states, obtaining a contractors license in Arizona means jumping through a lot of hoops, but is well worth it. For those who want to make the move but are having problems with the confusing licensing process, contact us today. We will help you with everything from obtaining the right forms to studying for the exam. We even provide a no pass, no pay guarantee for those that aren’t sure if they can pass the first time.


PCI Group

Edited by an admin

For a construction company coming into Arizona from Texas, what Tax Burdens should we include in our rates?

Posted On: January 13th, 2023


Great Question about taxes. We recommend speaking with an accountant http://iascpa.net/ that is familiar with AZ Taxes and or visiting this link to learn more about Contractor Tax Burdens in Arizona https://azdor.gov/transaction-privilege-tax/contracting-guidelines

Posted On: January 13th, 2023