You’ve already been through four years of school, or maybe you’ve gone through the trouble of attending a bootcamp for your chosen profession instead. You’ve paid your dues, and you are ready to be out of school and into the weeds, making money and building your reputation with each client you serve. Going through the process of obtaining a license seems like an unnecessary hassle, a further investment of both time and money that has the added bonus of getting you caught in a web of government red tape. In some regions and states, you aren’t required to have a license: so why should you go through the trouble of getting one if it isn’t absolutely necessary?

Well, it turns out that there are a ton of reasons to make the extra effort and get your license, whether you’re a contractor looking to work in a particular state or a realtor looking to take advantage of the housing boom. Licenses are typically required in most states for a reason, and those reasons are what we’re going to be covering below. Even though it may be an option for you to obtain your license in a particular province, you should definitely put forth the extra effort and obtain one, especially if you’re looking to enter the world of real estate or contract work.

Without further ado, here are a few reasons why you may want to get your license before you take your first client.

Status and Level of Public Trust

Getting your license shows that the state itself (and the oversight board that has signed off on your ability to practice in that area) has approved your practice, that you have passed the minimum requirements to conduct your business in that state. As such, you’re more likely to get hired to take on a job than someone who hasn’t gotten their license, as they do not have anything that shows that they are adequately qualified. Even if you think you have the know-how to get by without a license, licensure does quite a bit for public confidence in your brand and might swing more customers your way, marking you as a trusted pillar of your industry.

Maintains Public Standards for Your Profession

Part of the role of state governments is to make sure that businesses that operate within the state’s bounds are doing right by their customers, and so licensure is an extent of that kind of oversight. Taking the time to get an education on current contracting laws and regulations and working to pass the licensure exam will show your prospective clients that you are on the up-and-up, up-to-date on all current regulations, and unlikely to cut corners to get a job done. You may see this kind of oversight as unnecessary red tape but remember: it’s here so that not anybody can just start up a contracting or real estate business, scam customers, and defame your profession.

Protects You in The Event You File a Claim

The best reason you should carry a license is to protect your right to file a lien against an unpaying customer. Contractor liens are legal claims made by contractors against their clients, usually when work on a particular site has gone unpaid, and the right to file a lien is one of the best defenses contractors have against this kind of behavior. However, suppose you don’t have the proper licensure. In that case, chances are when you file said lien, the court will be less likely to take your claim seriously; failing to be properly licensed suggests a rejection of the oversight mentioned above, spitting in the eye of the law, and that won’t go over well in the house of law itself.

There’s no denying that taking the time to obtain the proper licensure can be a major hassle, and many of us would rather skip the process altogether. But the licensure process is there to establish a mutually beneficial relationship between us and our government, allowing each institution to protect the other in the instance something goes wrong. Failing to obtain your license, no matter what profession you’re in (whether you’re in real estate or something dramatically different), can be a critical mistake.