Washington Account Stated for Construction Work
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How to fill out Account Stated For Construction Work?
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FAQ
In Washington, the law requires that in most cases, anyone working on/repairing/remodeling plumbing needs to have a current Washington State Plumbing License, or a State Plumber-Trainee License, and a trainee needs to be working under the direct supervision of a licensed/certified Journeyman plumber.
Washington requires general contractors to collect retail sales tax on the total contract price when performing work for others at retail. Retail sales tax also applies to a subcontractor's total charges (contract price) to a general contractor, unless the general contractor gives the subcontractor a reseller permit.
The primary difference between general contractor vs. handyman is, put simply, general contractors become involved in larger and more complex projects. Handymen must work as the sole employee, while a general contractor in Washington state can hire specialists to assist with the work.
State law also requires construction contractors to be bonded and insured to protect the public. Once registered, contractors can bid, advertise, and perform construction work. This can include constructing, remodeling, repairing and demolishing buildings, roads and other real property.
Retail sales tax: Businesses selling goods at retail or performing retail services (such as custom prime construction) must also collect and remit retail sales tax on their total charges unless a specific exemption applies.
The following restrictions apply to handyman work in Washington State: You must perform all work personally without employees or other specialty contractors. You may only perform minor and casual work related to maintenance and repair of existing residences. You may not perform work requiring a building permit.
Price and payment terms. If a contractor demands a large payment upfront to buy materials or products, you've got the wrong contractor. Reputable pros have accounts at their suppliers and at least 30 days to pay. Avoid companies that require an upfront deposit of more than 10 percent.
Handyman professionals are referred to as specialty contractors who perform minor work on existing properties with a value less than $2,000. Specialty contractors must register to perform one handyman trade or craft.
