Delaware Department of Labor Contractor Registration: What You Need to Know
If you`re a contractor working in Delaware, it`s important to know the rules and regulations for registering with the Delaware Department of Labor. Failure to comply with these regulations can result in fines and even legal action.
Who Needs to Register?
Any contractor who is performing work on a private project with a total cost of $50,000 or more must register with the Department of Labor. This includes both resident and non-resident contractors. In addition, any contractor who is performing work on a public project with a total cost of $100,000 or more must also register.
What Are the Requirements?
To register with the Delaware Department of Labor, contractors must provide the following information:
– Business name and address
– Business phone number and email address
– Business license number
– Workers` compensation insurance information
– Federal Employer Identification Number (FEIN)
– Delaware Income Tax Withholding Number
– Indication of whether the business is registered with the Delaware Division of Corporations
In addition, contractors must provide proof of liability insurance coverage of at least $300,000 for bodily injury and property damage. They must also indicate their affiliation with any trade organizations or professional associations.
What Are the Fees?
Contractors must pay a registration fee of $75 to the Delaware Department of Labor when they register. In addition, contractors working on public projects must also pay a $500 bond fee.
What Happens If You Don`t Register?
If a contractor fails to register with the Delaware Department of Labor, they may be subject to fines of up to $1,000 per violation. In addition, their ability to work on future contracts may be compromised, as many construction projects require proof of registration.
Conclusion
Registering with the Delaware Department of Labor may seem like an unnecessary hassle, but it`s an important step for contractors looking to work on construction projects in the state. By complying with these regulations, contractors can avoid costly fines and legal action, and ensure that they`re able to continue working on future projects.