A Nevada contractor wants to increase their license limit from $500,000 to $1,500,000. Calculate the additional net worth required:
Correct Answer
B) $25,000
Moving from Class B ($500K limit requiring $25K net worth) to Class A ($1.5M limit requiring $50K net worth) requires an additional $25,000 in net worth.
Why This Is the Correct Answer
Nevada contractor licenses are classified by project limit. Class B licenses (up to $500,000 in project value) require a minimum net worth of $25,000. Class A licenses (unlimited, covering up to $1,500,000 and beyond) require a minimum net worth of $50,000. The additional net worth required is $50,000 − $25,000 = $25,000.
Why the Other Options Are Wrong
Option A: $35,000
$35,000 does not correspond to any standard difference between Nevada contractor license class net worth requirements. This is a distractor with no basis in the NSCB fee or net worth schedule.
Option C: $20,000
$20,000 is less than the actual difference. If Class B requires $25K and Class A requires $50K, the gap is $25K — not $20K.
Option D: $30,000
$30,000 is close but incorrect. The actual difference between the $25,000 net worth for Class B and the $50,000 for Class A is exactly $25,000, not $30,000.
Memory Technique
Nevada license class net worth ladder: C→$2K, B→$25K, A→$50K. Going from B to A: $50K − $25K = $25K more. Remember it as 'doubling up from B to A costs you $25K more in net worth.'
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