Arizona HVAC License Requirement

June 16, 2023

by a searcher from Parsons School of Design in Cuxhaven, Germany

Hello Search Funder Community,

Does anyone have experience with HVAC license requirements particularly in the state of Arizona? Does the owner/buyer of an HVAC services company need a license e.g., the “Conditioner Air Non-Restricted Class 2” license or Contractors license with AZ ROC etc? Is it sufficient if one or more employees are licensed? Are there restrictions on the type of work you can do as an owner if you’re unlicensed? I’d love to connect with anyone who is knowledgeable on the subject.

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Reply by a lender
in United States

^redacted‌ -- there are bank lenders who will allow a unique structure of business ownership regarding state specific licensing requirements whereas the majority new owner doesn't carry the license. If there is an employee currently with the business who holds the license and performs the licensed HVAC work, the proposed buyer can offer a small ownership percentage to the licensed employee of 2% to satisfy the state licensing requirements. The bank underwriter may condition the 2% licensed employee to have a signed employment agreement for a year and a Key Man term life insurance since the the licenses key employee is tied to the revenues of the business. Any other questions, feel free to reach out to me at redacted and or connect with me on LinkedIn at https://www.linkedin.com/in/debjojocurtis/ and shoot me a DM.

Reply by a searcher
from Brigham Young University in Mesa, AZ, USA

I'm not an expert, but yes, you for sure need to be licenced, bonded, and insured, esp in HVAC. The license holder needs to be the owner or a key employee/supervisor.

+2 more replies.

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