Business Licenses and Permits

Last week central Wisconsin was hit by heavy storms, with rain fall totals in some areas topping 10 inches in just a few hours.  Rainfall of this magnitude has lead to extensive flooding in the state, from flash flooding directly after the storm, to rain swelling rivers to surge above flood stage.  As the flood waters recede, homeowners are looking to repair the flood damage and move on.

Natural disasters, such as the flooding in Wisconsin, are a magnet for storm chasers.  However, these storm chasers are not scientists, they are contractors trying to make some easy money.  These contractors are usually from out of town and even out of state.  They will knock on doors and offer to do work, ask for money up front and never complete the work. 

It can be difficult to tell a reputable contractor from a bad one, especially in times of distress when you want to get repairs done quickly.  The Capital Times in Madison, WI recently provided some tips from the Wisconsin Department of Agriculture, Trade and Consumer Protection to help chose a good contractor:

• Be wary of any contractor who knocks at your door. Call the police or sheriff’s department to check them out.
• Try to get a local contractor. Ask contractors if they are subcontracting your job, and be careful if local contractors are using outside subcontractors.
• Get lien waivers from anyone you pay for home repairs. It is necessary to do this because if the person collecting the money doesn’t pay the supplier or worker, a lien could be put on your house.
• Get a written contract, with a start and completion date, and warranty information. Make certain the contract states exactly what work is to be done and what materials are being used, and never relay on a verbal commitment.
• Contractors who register with the state are issued a card. Make sure any contractor you are considering hiring shows you their state registration card.
• Have someone watch the work being done. Ask your local building inspectors to visit the job site often.
• Request a copy of the contractor’s certificate of liability insurance.

Most states and municipalities require constructors to have a business license.  Another good tip would be asking to see the contractor’s business license.  If they can’t show you proof, do not hire them.  It’s as simple as that.

Amy Lee, Business License Research Analyst, Corporation Service Company

Tags: business license, contractor, Wisconsin