South Carolina Contractors' Licensing Board
Message To LLR Stakeholders About Regulatory Review Process
Financial Statement Requirements
A financial statement dated within 12 months of the date on the application must be submitted with all applications reflecting the appropriate net worth for the group in which you are applying. The financial statement must be in the name of the entity applying for a license and reflect the net worth of that entity. Financial statements of the owner/sole proprietor cannot be substituted for a partnership, corporation, LLC, etc. A financial statement on a parent company may be accepted if the accompanied by a letter from the parent company stating the entity is a wholly owned subsidiary.
Financial statement requirements for initial applications and renewal applications are not the same. See License Renewal and Reinstatement Requirements, and Section 40-11-260 of the General and Mechanical Contracting Practice Act for additional information regarding financial statement requirements.
The following financial statement requirements apply to initial applications:
Groups 1 and 2 - Submit a "self-prepared" financial statement - must be signed and notarized. You may generate a balance sheet from your accounting software or obtain a form from a bank. You can also use our fax on demand to obtain a form. Call (888) 269-7646, and request document #172.
Groups 3 and 4 - Submit a “compiled” financial statement prepared by a Certified Public Accountant (CPA) or Licensed Public Accountant (LPA). The financial statement must include a signed cover letter from the CPA or LPA stating it was “compiled”. It must be prepared in accordance with SSARS including all disclosures required by GAAP.
Group 5 - Submit an “audited” financial statement prepared by a CPA including all disclosures required by GAAP (no exceptions will be made). The financial statement must include a signed cover letter from the CPA. It must be prepared in accordance with SSARS including all disclosures required by GAAP.
General Contractor
| Limit Per Contract | Net Worth Requirement |
| Group # 1 $30,000 | $6,000 |
| Group # 2 $100,000 | $20,000 |
| Group # 3 $350,000 | $70,000 |
| Group # 4 $750,000 | $150,000 |
| Group # 5 $Unlimited | $250,000 |
Mechanical Contractor
| Limit Per Contract | Net Worth Requirement |
| Group # 1 $17,500 | $3,500 |
| Group # 2 $30,000 | $6,000 |
| Group # 3 $50,000 | $10,000 |
| Group # 4 $125,000 | $25,000 |
| Group # 5 $Unlimited | $100,000 |
Also, see Policy for Financial Statements.
