1.4 License Maintenance, Biennial Renewal, Inactive Status & Business Changes

Biennial License Renewal Cycle (NRS 624.283 & NAC 624.630)

In Nevada, contractor licenses are issued on a two-year (biennial) renewal cycle. Every licensee is legally obligated to maintain their license in active, continuous standing to bid, execute contracts, pull building permits, or perform work.

The Expiration Rule

Under NRS 624.283(1), each license expires 2 years after the date on which it is issued. The Board may set shorter or longer periods, with prorated fees, to stagger renewals. NAC 624.630(1) requires the licensee to return the completed renewal application by the last day of the month in which the license expires. If the Board has asked for a financial statement with the renewal, the package is due by the first day of that month (NAC 624.630(2)).

The Renewal Package Requirements

The Board mails a renewal application to the address of record, which is one reason address changes must be reported. To renew an active license, the contractor must submit:

1. Renewal Application Form: Signed by an authorized principal or Qualifying Party.
2. Biennial Renewal Fee: The standard active renewal fee is $600 for the two-year period.
3. Proof of Industrial Insurance (Workers' Compensation): Current verification of active workers' compensation coverage through an authorized private carrier or an approved self-insurance program, or an executed affidavit of exemption if the contractor has zero employees.
4. Continuous Surety Bond / Cash Deposit: Confirmation that the active contractor bond matching the licensee's assigned monetary limit remains in full force and effect.
5. Residential Recovery Fund Assessment: If the contractor is a residential contractor, the biennial assessment under NRS 624.470, which may not exceed $200 (limit of $1,000,000 or less), $500 (limited above $1,000,000), or $1,000 (unlimited).
6. Financial Statement: If requested by the Board or if the contractor is simultaneously petitioning to increase their monetary license limit.

If necessary information is missing from a timely, paid renewal, the Board conditionally renews the license until the information arrives (NAC 624.630(4)).

---

Late Renewals, License Expiration, and Consequences of Lapsing

Under NRS 624.283(1), any license that is not renewed on or before the renewal date is automatically suspended.

Reinstatement and Late Fees

A suspended licensee in good standing with no pending complaints may have the license reinstated by filing a renewal application within 6 months after the suspension and paying the renewal fee plus a reinstatement fee (NRS 624.283(4)). NAC 624.130 sets the late fee for an active license at $150, so a late active renewal costs $750 ($600 + $150). The late fee for an inactive license is $75. A licensee who is not in good standing, or who has a complaint pending, may be required to supply a CPA-prepared financial statement or meet other conditions.

Cancellation After 6 Months

A license not reinstated within 6 months after automatic suspension may be cancelled by the Board (NRS 624.283(4)). NAC 624.630(3)(b) adds that if the licensee does not attempt renewal within the first 6 months of the new biennium, the Board will deny, revoke or refuse to renew it. In either case:

• The license cannot be revived with a renewal form.
• The business must submit an application for an original contractor's license.
• The new application goes through the full review again, including financial responsibility and background checks.

Severe Consequences of Contracting While Expired

There is no legal permission to contract while a license is suspended for non-renewal. NRS 624.700 requires an active license. Even if the contractor intends to pay the late fee the following week, contracting during the suspension triggers severe penalties:

• Criminal Prosecution: Contracting without an active license is unlawful under NRS 624.700 and punishable under NRS 624.750 (misdemeanor for a first offense, escalating to a gross misdemeanor and a category E felony).
• Administrative Fines: The Board may impose fines of $1,000 to $50,000 per violation (NRS 624.710).
• Loss of Legal Standing to Sue (NRS 624.320): A contractor has no right to file a lawsuit in Nevada courts to recover payment or enforce a mechanic's lien for work performed while the license was expired.

---

Voluntary Inactive Status (NRS 624.282)

Contractors who choose to temporarily pause operations (due to economic downturns, retirement, military service, or extended sabbaticals) can protect their licensing record by placing their license on voluntary inactive status.

Conditions and Rules for Inactive Status

• Good Standing Required: The Board may grant the application if the license is in good standing and the licensee has met all requirements for issuance or renewal as of the application date (NRS 624.282(1)). The contractor files a Board form and surrenders the active license and pocket card (NAC 624.635(1)).
• Reduced Biennial Fee: Issuing or renewing an inactive license costs $300 (NAC 624.130), half the $600 active fee. Renewal fees already paid are not refunded.
• Relief from Bond and Qualifier Requirements: An inactive licensee is exempt from the NRS 624.270 bond requirement and from the NRS 624.260 requirement to qualify through an experienced individual (NRS 624.282(3)).
• Strict Operational Prohibition: An inactive licensee shall not engage in any work or activities that require a contractor's license (NRS 624.282(2)). Doing so is a ground for discipline under NRS 624.3015(6).
• 8-Year Limit: Inactive status is valid for 8 years; a license not returned to active status within 8 years expires (NRS 624.282(4); NAC 624.635(3)).

Reactivating an Inactive License

Under NAC 624.635(4), a licensee whose inactive license is in good standing may apply for active status by:

1. Submitting an application on the Board's form.
2. Paying the fee in NAC 624.130 and any applicable assessments, such as the Recovery Fund assessment.
3. Fulfilling every other requirement for an active licensee, including a bond or cash deposit, a qualified individual, and proof of industrial insurance or an exemption affidavit.

---

Mandatory Reporting of Business Changes (The 30-Day Rule)

Under NAC 624.640(3) and NAC 624.665, licensees must keep the Board informed of changes that affect the accuracy of the license application. The rule is a 30-day reporting requirement:

1. Change of Address or Contact Details

Any change in the licensee's address or personnel that affects the accuracy of the statements in its application must be reported to the Board in writing within 30 days after the change (NAC 624.640(3)).

Legal Warning: Official Board legal notices, complaints, and summons are served via certified mail to the address of record. Claiming you never received a notice because you moved without notifying the Board is not a valid legal defense.

2. Changes in Corporate Officers, Directors, Members, or Partners

• Application Window: A licensee must submit an application to the Board for any change in its corporate officers or directors, the general partners of a limited partnership, or the managers or managing members of an LLC, before or within 30 days after the change (NAC 624.665). The Board charges $250 to consider a change of the qualified person or another principal (NAC 624.130).
• Background Screening: New officers, directors, partners and associates must possess good character, and the Board may require fingerprints for a state and FBI background check (NRS 624.265).

3. Business Name Changes & DBAs

A contractor cannot legally adopt or operate under a new business name without prior formal approval from the NSCB:

• Before using a new name on bids, contracts or advertising, the contractor files an application for a change in the name of the licensee; the Board's fee is $250 (NAC 624.130).
• A conversion of the business organization under NRS Chapter 92A requires its own application and a $300 fee (NAC 624.130, 624.667).
• Advertising under a name or license number that does not match a valid license is unlawful under NRS 624.720(5).

4. Death or Dissociation of an Officer or Partner

NAC 624.660 sets different outcomes depending on who dies or leaves:

• Sole Proprietor Dies: The license is automatically suspended on the date of death. If the executor, heirs or successors do not acquire an approved qualified employee and apply for a new license within 40 days, the license is revoked.
• Partner Dies (Not the Sole Qualified Partner): The partnership license continues in effect until its expiration date.
• Sole Qualified Partner Dies: The license is automatically suspended 60 days after the date of death.
• Partnership Dissolved for Another Reason: The license is revoked.
• Partners Added or Removed (other than by death): The partnership must apply for a new license.

---

Mandatory Display and Advertising Requirements (NRS 624.720 & NAC 624.640)

Nevada enforces stringent consumer disclosure and advertising standards to eradicate deceptive practices and suppress unlicensed operators.

1. License Number on Bids, Contracts, and Documents

Pursuant to NAC 624.640(5), each licensee must include the number of its license and any monetary limit placed on the license in:

• All bids it submits for construction work in Nevada
• All contracts it enters into for construction work in Nevada

Each licensee must also provide proof of licensure to any interested person (NAC 624.640(2)). It must check that every bidder whose bid it considers is appropriately licensed (NAC 624.640(6)). A bid or contract that exceeds the license's scope or monetary limit is void (NAC 624.640(1)).

2. Advertising, Including Vehicle Markings (NRS 624.720)

All advertising by a licensed contractor must include the name of the contractor's company and the number of its license (NRS 624.720(4)). "Advertising" is defined broadly in NRS 624.720(8) to include:

• Signs, cards and devices, and any sign or marking on a motor vehicle
• Signs in buildings or structures, newspapers, magazines and airway transmissions
• Websites and other Internet listings, and directory listings under "contractor"

NRS 624.720 also makes these acts unlawful:

• Advertising as a contractor without a license in the appropriate classification, even if the person is exempt under NRS 624.031.
• A licensee's false or misleading statements of material fact made to induce a contract.
• Advertising with a license number that does not correspond to a valid license issued to that person.

Enforcement: After notice and a hearing, the Board may order unlawful advertising to stop and the telephone number to be disconnected. If the person does not comply within 5 days, the Board may ask the Public Utilities Commission to order disconnection (NRS 624.720(6)–(7)). Unlawful advertising also carries fines of $1,000 to $50,000 per violation (NRS 624.710).