Contractor’s Licensing Requirements by State
One of the most important steps in creating a contracting business is securing the necessary licensing and registration. Licensing and registration requirements vary by state so select the state(s) in which you operate for accurate information.
Alabama
A contractor’s license is required for any prime contractor on a commercial project valued over $50,000, a residential project over $10,000, and pool projects over $5,000. In addition to passing a write test, contractors must provide proof of industry experience and possess general liability insurance.
Subcontractors also need a license when they work for a general contractor for any work over $50,000. There are different classes of subcontractor licensure, such as masonry, HVAC, and plumbing.
For instructions on applying for a Alabama general contractor license, visit the Alabama Licensing Board for General Contractors.
Alaska
General contractors are required to hold a license in Alaska. There are three different kinds of licenses available:
- General Contractor without Residential Contractor Endorsement: Must be held by contractors who work on projects costing less than 25% of the structure’s value.
- General Contractor with Residential Contractor Endorsement: For contractors who manage or undertake residential projects higher than 25% of the value of the structure.
- General Contractor Handyman: Anyone who works on projects with a total value of less than $10,000 must carry this type of license.
Contractors must also take a 16-hour cold climate course and show proof of General Liability and Workers’ Compensation insurance. Note that specialty contractors need to obtain an endorsement for their trade(s) in addition to a license.
For more information, visit Alaska’s Division of Corporations, Businesses, and Professional Licensing.
Arizona
Arizona contractors must have a license. There are several classifications including but not limited to: General Commercial Contractors, General Residential Contractors, General Dual license Contracting, and trade specific licenses. All licenses require contractors to pass an exam, prove that they have at least four years of professional experience, and be covered with a surety bond.
Note that projects under $1,000 do not require a license so long as they do not require permits of any kind.
The Arizona Registrar of Contractors handles licensing. Visit their website for more information.
Arkansas
Arkansas contractors are required to hold a license if they work on projects exceeding $2,000 in value. Licensing candidates must provide financial statements, pass an exam, and show proof of Worker’s Compensation coverage and of Surety Bond.
If you work on commercial projects worth more than $50,000, you will need a commercial license. If you build single family homes, you will need a residential builders license. And for work on an addition or structural changes to an existing single-family home, you will need a residential remodelers license. The state of Arkansas offers more specialized classification that you can find here.
Subcontractors can work under licensed contractors without a license though they need to register.
California
All California contractors working on projects valued over $500, require licenses. There are three main class: (1) Class A, for general engineering licenses, (2) Class B, for general building license, (3) Class C, for specialty trades and subcontractors. In order to obtain a license, applicants must pass the necessary exams, have at least 4 years of professional experiences within the past ten years, and provide proof of general liability insurance and of surety bond.
Licensing falls under the purview of the California Contractor State Licensing Board.
Colorado
Colorado general contractors are not required to obtain a state license, however, some municipalities, like Denver, have their own licensing boards. Look into your local licensing requirements if you live in Colorado.
Note that plumbing and electrical contractors do need to hold a license from the Colorado Department of Regulatory Agencies.
Connecticut
There is no requirement to carry a license as a general contractor in Connecticut — or even for specialty contractors like plumbers and electricians. If you work on home improvement projects, however, you will need to register with the state’s Department of Consumer Protection.
Delaware
General Contractors do not need a license to work in Delaware. However, businesses do need to register with the Division of Revenue. Specialty contractors must also obtain a license through the Department of Professional Regulation, which requires passing an exam.
Florida
Florida contractors must be licensed. Contractors can be licensed as either a registered or certified contractor. Registered contractors can work in specific locations whereas certified contractors can work anywhere in the state. There are several different types of licenses, including but not limited to: general contractor, for work on buildings less than 4 stories high, building contractor, for remodeling, repair, or improvements on buildings 3 stories or less in height, residential contractor, for work on residences 2 stories or less.
Division I certifications are for general contractors and division II certifications are for subcontractors and specialty contractors. Handyman services might not require licensing, so long as projects do not involve foundation, structural walls, plumbing, etc.
All licenses require applicants to pass exams, show proof of experience and/or education, and provide proof of financials and insurance.
Visit Florida’s Department of Business and Professional Regulation for more.
Georgia
Any contractor, general or specialty, working on projects valued over $2,500 must have a license in Georgia. To obtain a license one must be at least 21 years of age, pass the necessary exams, have a four year degree in a relevant degree or work experience, and proof of insurance.
See the Georgia State Licensing Board for Residential and General Contractors.
Hawaii
For residential, commercial, or public works projects valued at or over $1,000, or projects that require a building permit, you must hold a license. There are three types of licenses: (1) Class A, for general engineering licenses, (2) Class B, for general building license, (3) Class C, for specialty trades and subcontractors.
In order to receive a license, you must pass the necessary exams and show proof of insurance. The Hawaii Department of Commerce and Consumer Affairs, Professional and Vocational Licensing Board manages contractor licensing.
Idaho
Idaho does not require general contractors to hold a state license, though they must register their business with the Idaho Contractors Board if they work on projects worth over $2,000. Anyone performing specialty work, like HVAC or electrical, or managing a public works project requires licensing.
Illinois
General contractors can work in Illinois without a state license, however, there are often local or county licensing requirements. Check with your municipal government before getting contract-happy.
Indiana
General contractors can work in Indiana without a state license, however, there are often local or county licensing requirements. Check with your municipal government before getting contract-happy.
Note that plumbing contractors must carry a state-issued license. See the Indiana Professional Licensing Agency.
Iowa
Contractors performing more than $2,000 in work over a year must register their business with the Division of Labor. Specialty trades typically require licenses, but beyond that, contracting is unregulated on the state level. Do not forget to check if your city or county has their own licensing requirements in addition to the state registration.
Kansas
General contractors can work in Kansas without a state license, however, there are often local or county licensing requirements. Check with your municipal government before getting contract-happy.
Note that drillers and asbestos abatement contractors need a license and should get in touch with the Department of Health and Environment.
Kentucky
A state license is not required for general contractors in Kentucky, though there are often local or county requirements. Check with your municipal government before signing contracts.
Note that electrical, plumbing, and HVAC contractors do need a state-level license. Contact the Department of Housing, Buildings, and Construction.
Louisiana
Licensing is required for general contractors to work in Louisiana. A commercial license is required for commercial projects over $50,000 in value, and a residential license is needed for home remodeling projects over $75,000. Both of these licenses require applicants to pass exams, submit financial statements, and provide proof of insurance.
When a contractor only works on residential projects valued between $7,500 and $75,000, they are considered home improvement contractors and only need to register their business with the Louisiana State Licensing Board for Contractors.
Maine
There is no required state-level license to operate a contracting business in Maine, unless you are an electrician or plumber. Licensing and regulation is left to local municipalities in Maine; even building codes different among towns.
The only statewide rule is that any project worth more than $3,000 requires a written contract.
Maryland
General contractors can build new homes without a license in Maryland, though they need to register with the Home Builder Registration Unit of the Office of the Attorney General. Home improvement contractors, those who work on existing structures, however, do need a license from the Maryland Home Improvement Commission. Contractors who work on commercial projects need to look to their local government for licensing requirements.
Plumbing, HVAC, and electrical contractors need to apply for a license with the state, but other trades need to default to their local municipality.
Massachusetts
Massachusetts has two versions of a contractor’s license:
- Construction Supervisor License (CSL): Required for all 1-2 family home construction projects and work on 1-4 family, owner-occupied projects.
- For owner occupied projects, the contractor must also register with the home improvement program.
- Registered Design Professional (RDP): Projects exceeding 35,000 cubic feet of enclosed space require an overseer to hold this level of licensure. Typically an engineer or architect would qualify.
There are several specific classifications of each license which you can learn about here. Specialty contractors must go through trade specific boards for licensing.
Michigan
Michigan general contractors need to carry either a residential builders license or a maintenance and alterations contractors license — both of which require a 60 hour course and successful completion of an exam. Commercial contractors should refer to their municipal government for licensing requirements. Specialty contractors must go through trade specific divisions for licensing.
Refer to the Michigan Department of Licensing and Regulatory Affairs for more information.
Minnesota
Minnesota’s licensing requirements are unique and may seem confusing. If you are a general contractor working on residential building or remodeling projects, you will need a Residential Building Contracting license. However, if you earn less than $15,000 a year from your contracting business, you do not need a license at all. Contractors who work exclusively on commercial projects also do not need a license, but they must register with the Contractor Registration Program. Subcontractors do not need to carry a license if they have one special skill, but if they work in two or more special areas, they need a Residential Building Contracting License. In order to obtain the residential building contracting license, one must show proof of insurance and pass exams.
Refer to the Minnesota Department of Labor and Industry for more information.
Mississippi
If you work on any of the following projects, you need a license in order to conduct business in Mississippi:
- Commercial jobs valued over $50,000
- Residential new construction over $50,000
- Residential remodeling over $10,000
- Roofing projects over $10,000
The Mississippi State Board of Contractors manages state licenses and breaks down licenses into specific classifications. In general, a passed exam and proof of insurance are what’s necessary to obtain a license.
Specialty contractors should refer to their municipal government for licensing requirements.
Missouri
General contractors can work in Missouri without a state license, however, there are often local or county licensing requirements. Check with your municipal government before getting contract-happy.
Montana
General contractors do not need a state license to work in Montana, however, they must register with the state’s Construction Contractor Registration Program. The purpose of the registration is to ensure contractors are in compliance with the Montana Workers’ Compensation Act.
Nebraska
Nebraska contractors do not need a state license, but they must register their business. All contractors, including subcontractors, earning more than $5,000 per year must register with the Nebraska Department of Labor in accordance with the Nebraska Contractor Registration Act.
Nevada
All contractors must hold a state-issue license in Nevada. In order to obtain a license you must show proof of insurance and surety bond, provide financial statements, have proof of 4 years of work experience within the last 10 years, and successfully pass exams. Residential contractors should carry a Class B license whereas specialty trades and subcontractors should pursue a Class C license.
Refer to the Nevada State Contractors Board for more information.
New Hampshire
General contractors can work in New Hampshire without a state license, however, there can be local or county licensing requirements. Check with your municipal government before getting contract-happy.
New Jersey
Contractors are not required to hold state-issued licenses in New Jersey, but they do need to register their business with the state. Home improvement contractors need to register with the New Jersey Division of Consumer Affairs. Home builders must register with the New Jersey Department of Community Affairs. Commercial contractors do not need to register.
New Mexico
All contractors, general or subcontractors, operating in New Mexico must hold a license from the New Mexico Regulation and Licensing Department. The exception to this rule are contractors making less than $7,200 per year.
New York
With the exception of asbestos abatement contractors and crane operators, contractors do not need a state level license in New York. However, there are often local or county licensing requirements. Check with your municipal government before getting contract-happy.
North Carolina
All general contractors who work on projects over $30,000 in value must hold a license in the state of North Carolina. Licenses fall into five main categories: building, residential, highway, public utilities, and specialty contractors (which include subcontractors). There are three types of licenses available to contractors: limited, for projects up to $500,000; intermediate, for projects up to $1,000,000; and unlimited. As the value of the licensure increases, so do the requirements, though all licenses require successful completion of exams.
For more information, visit the North Carolina Licensing Board for General Contractors.
North Dakota
All general contractors who work on projects valued over $4,000 must carry a license in North Dakota. There are four classes of licenses: Class A, for projects over $500,000; Class B, for projects up to $500,000; Class C, for projects up to $300,000; and Class D, for projects up to $100,000. With the exception of plumbing and electrical contractors, there is no exam involved, though applicants must show proof of insurance.
For more information, visit the Secretary of State.
Ohio
General contractors can work in Ohio without a state license, as licensing and registration is left to municipalities. Check with your local government before getting contract-happy.
Oklahoma
Oklahoma only requires electrical, mechanical, plumbing, and roofing contractors to hold a state license issued by the Construction Industries Board. For general contractors, local governments handle licensing and registration. Check with your city or county before getting contract-happy.
Oregon
“Anyone who works for compensation in any construction activity involving improvements to real property needs a license,” says the Oregon Construction Contractors Board. Contractors can apply for three different types of licenses: residential, commercial, or residential and commercial. Specialty contractors, like HVAC and electrical contractors, must get an endorsement of those skills on their license.
In order to apply for a license, one must show proof of insurance, take a course and pass an exam, and file for a Public Works Bond if the project’s value exceeds $100,000.
Pennsylvania
With the exception of asbestos and lead removal and crane operation, general contractors do not need to hold a state license. They must, however, register their business with the State Attorney General’s Office if they do over $5,000 worth of work per year.
Note that city and county governments might have additional licensing and registration requirements. Check with your local government before getting contract-happy.
Rhode Island
Rhode Island contractors do not need a license, but they must register with the Contractors Registration and Licensing Board. The registration process requires applicants to complete a training course, as well as show proof of General Liability and Workers Compensation coverage.
South Carolina
For contractors working on projects valued over $5,000, they must hold a license. The first type of license available to contractors is the general and mechanical contractors license. With this, you can work on residential, commercial, and industrial projects. The second type of license is for contractors who perform residential work and is issued by the Residential Builders Commission. South Carolina requires prospective licensees to show proof of experience, pass an exam, and submit a financial statement.
For more information, visit the South Carolina Contractor’s Licensing Board.
South Dakota
South Dakota licensing is largely left to municipalities. Contractors must check with their local government before getting contract-happy. And while there is no state level license, all contracts must register for a South Dakota Contractor’s Tax License.
Note that electrical and plumbing contractors do need a state license issued by the Department of Labor and Regulation.
Tennessee
General contractors need a state issued license before bidding on or contracting with an owner on a project valued over $25,000 in the state of Tennessee. Subcontractors who perform drywall, painting, landscaping, and carpentry are not required to hold a license so long as they are working under a licensed contractors. In order to obtain a license, contractors must show proof of work experience, submit financial statements, and pass the necessary exams.
For more information, visit the Tennessee Department of Licensing and Insurance, Board for Licensing Contractors.
Texas
With the exception of electricians, HVAC technicians, and plumbers, contractors are not required to carry a state issued license. That being said, local governments can have their own licensing requirements. Check with your city or county before getting contract-happy.
Note that all businesses must register for a Texas Business License.
Utah
All Utah contractors, general or specialty, must have a state-issued contractors license. Specialty/subcontractors must select their trade before applying for a license, and general contractors must choose which license best applies to them. In order to obtain a license, contractors must show proof of work experience, submit financial statements, pass the necessary exams, and show proof of insurance.
For more information, visit the Utah Division of Occupational and Professional Licensing.
Vermont
Vermont does not require contractors to carry state licenses, however, local governments can have their own requirements. Check with your municipality to determine licensing and registration requirements.
Virginia
Virginia requires all general contractors to carry a state license issued by the Department of Professional and Occupational Regulation Board for Contractors. There are three levels of licensure:
- Class A: allows contractors to work on projects up to $10,000 in value, up to $150,000 per year. A minimum of 2 years experience is required.
- Class B: allows contractors to work on projects up to $120,000 in value, up to $750,000 a year. A minimum of 3 years experience is required.
- Class C: Unlimited project value and annual earnings. A minimum of 5 years experience is required, as well as a licensing course and successful exam completion.
Washington
While Washington does not require general contractors to hold a license, they must register their business with the State Department of Labor and Industries. In order to register, contractors must show proof of insurance and surety bond, and pass exams.
Note that asbestos, electrical, and plumbing contractors need state level licenses.
West Virginia
Contractors working on projects worth more than $2,500 in value must carry a contractors license in West Virginia. There are several classifications and categories of licensure for which one can apply. Generally you will need to show proof of insurance and pass the necessary exams in order to obtain a license.
For more information, visit the West Virginia Division of Labor, Contracting Licensing Board.
Wisconsin
Wisconsin requires anyone working on projects worth more than $1,000 or projects that require a building permit to carry a Dwelling Contractor Qualifier License. In order to obtain a license, contractors need to complete a course and pass an exam, and show proof of insurance.
Electrical, plumbing, HVAC, and asbestos contractors must carry separate licenses in addition to this. For more information, visit the Wisconsin Department of Safety and Professional Services.
Wyoming
Wyoming does not require contractors to carry state licenses, however, local governments can have their own requirements. Check with your municipality to determine licensing and registration requirements.
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