Wyoming Contractor License Bonds: Local Rules and Nonresident Bonds

What the state does license: electrical contractors

Wyoming does license electrical contractors at the state level, through the Department of Fire Prevention and Electrical Safety. An electrical contractor is a person the department licenses to plan, lay out and supervise the installation of electrical equipment. The electrical licensing sources we checked do not list a bond for this license. Confirm current requirements with the department.

Wyoming bonds for nonresident contractors

Two state-level bonds can apply to nonresident contractors, and neither is a license bond. If you are a nonresident employer and expect to pay more than $4,000 in wages in any month from doing business in Wyoming, you must file a surety bond or other security with the director of the Department of Workforce Services under W.S. 27-1-106. This bond applies to nonresident employers generally, not only to contractors, but it does not apply to charitable or religious organizations. The amount is $8,000 plus an additional $2,000 for each $1,000, or fraction, that your expected monthly wages exceed $4,000, up to expected monthly wages of $20,000; above that, it is $1,000 for each additional $1,000. It secures employees' wages, civil penalties the occupational health and safety commission may assess, and Wyoming workers' compensation (unless the director waives it) and other Title 27 obligations. On your application, the director may permit you to withdraw it if you have complied and made all payments for two years, have been a Wyoming resident for two years and intend to remain one, or have acquired real property with an unencumbered value at least equal to the bond; failing to meet the requirement is a misdemeanor punishable by a fine of up to $1,000, up to one year of imprisonment, or both.

A nonresident prime contractor must also file a sales-tax bond or legal security with the Department of Revenue. The amount is 3 percent of the payments due under the contract, plus the additional 1 percent rate under W.S. 39-15-104(b), which is in effect — 4 percent in total — or an amount the department determines. You must register each project with the Department of Revenue within 15 days of the start, and you may instead post a cash deposit of at least 4 percent of the total payments due; late registration carries a penalty of 1 percent of the total payments due. Two alternatives exist: a $1,000,000 blanket sales-tax bond you file and maintain, or a performance bond on the contract, which carries the sales-tax obligation with the surety's liability limited to 3 percent, plus the increase, of the contract price. What you pay is a small share of the bond amount, set by the surety from your credit and business details.

Steps

1. Find your jurisdiction. Check whether the county, city or town where you work licenses contractors, since contractor licenses in Wyoming are issued locally.
2. Check for a state electrical license. If you do electrical work, confirm licensing with the Department of Fire Prevention and Electrical Safety; that license carries no bond in the sources we checked.
3. Review local bond and insurance rules. Ask the local building or licensing office what bond and insurance it requires; in the Town of Jackson this is a permits and license bond of $20,000 to $250,000 by class.
4. Handle reciprocity. If you hold an active license in good standing from another Wyoming jurisdiction, the accepting jurisdiction must recognize it, but you must provide any proof of financial assurance it requires.
5. If you are a nonresident, check state bonds. Review the nonresident employer wage bond (W.S. 27-1-106) with the Department of Workforce Services and the nonresident contractor sales-tax bond with the Department of Revenue.
6. Confirm before you file. Confirm the exact bond and documents with the local licensing office before you obtain and file your bond.

Sources

• Wyoming Legislature — Title 16 (W.S. 16-6-1101)
• Wyoming Legislature — Title 27 (W.S. 27-1-106)
• Wyoming Legislature — Title 35 (W.S. 35-9, electrical licensing)
• Wyoming Legislature — Title 39 (W.S. 39-15)
• Town of Jackson — Contractor Licensing
• Town of Jackson — Contractor licensing required-documents checklist (PDF)
• City of Gillette — Building Division
• Wyoming Department of Workforce Services — Resident Contractor Resources

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