Why does the City require certain businesses and contractors to be licensed?

The purpose of the licensing requirements is to provide a level of protection to the citizens and visitors of the City of Sturgis from fraud and misrepresentation.  Additionally, to ensure compliance with City ordinances, and to administer proper land use through quality planning and zoning in accordance with the Comprehensive Plan.

When licensing a contractor or business, the City is not endorsing the contractor’s work quality or the business.  Rather, the City is ensuring that we have basic information on all businesses and contractors operating within City limits, ensuring they are compliant with all applicable State licensing regulations (including sales and excise tax), and that they carry proper liability insurance.  The City Council is merely assuring residents that there are some nominal protections in place for residents when they hire or do business with a licensed contractor.

Further, the licensing process allows the City to be a resource for our residents:  When a resident inquires about a particular type of business or contractor, the City can produce a list of these businesses and their contact information.   It is also helpful to have business statistics as our community applies for grants or encourages business and economic development opportunities.

Finally, this process also ensures that once a year, we have the opportunity to remind contractors about what permits they need when doing construction-related work within the City of Sturgis, helping ensure compliance with building codes.