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Licenses Needed in the US For Various Businesses and Contractors

Licenses Needed in the US for Various Businesses and Contractors


Getting a contractor's license is a smart move if you want to get hired for larger projects and jobs that need permits. You can't legally handle much construction work without a license. This includes room additions, removing load-bearing walls, or expensive kitchen and bathroom remodels. You also can’t take on new building projects. If you work without a license or do unauthorised work, you could face fines, lose payment for your services, or even go to jail.


What You Should Know Before You Get a License


Many states have different licensing regulations for contractors. Here is what you generally need to do to obtain a license from any state:



  • Get your state license or certification.

  • Register your business with your local or county government.

  • Must have the business, trade, and law certification exams.

  • Pass a criminal background investigation.

  • Have liability insurance and workers' compensation insurance.

  • Show financial records or obtain a bond.

  • Make your construction work experience.


Contractor License Requirements by State


The following are the requirements for each state:


Alabama



Alabama mandates that contractors obtain a license from the Secretary of State. For residential work over $10,000. Also for industrial and commercial work over $50,000. Swimming pool installations over $5,000 require a license, too.


You also show proof of:



  • Registration

  • Liability insurance

  • Experience in construction work

  • Financial statements under the signature of a certified accountant


Alaska



In Alaska, licensing is required for contractors. They also require general liability insurance and workers' compensation insurance.


Arizona



  • State License Required: Yes

  • Registration Required: Yes

  • Registration Fee: $279 to $580, depending on classification

  • Testing Requirements: Pass the trade and Rules and Statutes Training exams

  • Register at: https://roc.az.gov/applying-for-a-license


Residential and commercial contractors provide evidence of:



  • A licensed bond

  • Workers' compensation insurance

  • Registration if you have an LLC

  • A background check


Arkansas



You must obtain a commercial license in Arkansas for jobs worth more than $50,000. You require a residential license for building single homes worth over $2,000. You also:



  • Pass a background check

  • Have 3 letters of recommendation written within the last 90 days

  • Produce financial statements or a $10,000 contractor bond


California



California needs a license to contract for projects worth more than $500. You also:



  • Pay a $15,000 bond or cash bond to CSLB

  • Pass background screening

  • Have four years of journey-level experience

  • Provide evidence of workers' compensation for your workers


Colorado



General contractors register for a license with their city or county. Special license work, such as electricians, must have a state license. Contact your local government for insurance and fingerprinting requirements.


Connecticut



Connecticut separates contractors into two groups: major contractors and minor contractors. Major contractors work on commercial buildings and submit:



  • Proof of liability insurance

  • References

  • Certified copy of trade name, if applicable

  • A certificate of existence from the Secretary of State if you’re an LLC or corporation


Minor contractors work on single-family homes and smaller multi-family units. They register as a new home construction contractor or a home improvement contractor.


Delaware



Delaware issues resident and non-resident contractor licenses. The Division of Revenue mandates the following from contractors:



  • Get a business license

  • Pay a gross receipts tax

  • Get a surety bond (Non-resident contractors)

  • Show proof of workers' compensation and unemployment insurance


Florida



  • State License Required: Yes

  • Registration Required: Yes

  • Registration Fee: $209 (odd years); $309 (even years)

  • Testing Requirements: Pass the Florida State Construction exam

  • Register at: https://www2.myfloridalicense.com/


Florida has two categories of licenses: registered and certified. They come in various classifications. Registered contractors operate in their area. Certified contractors operate throughout Florida. Contractors have to be insured under workers' compensation.


Georgia



  • State License Required: Yes

  • Registration Required: Yes

  • Registration Fee: $200

  • Testing Requirements: Pass business, law, and licensure tests

  • Register at: https://sos.ga.gov/


Georgia separates contractors into residential and general contractors when it licenses them. Residential contractors do work on one-or two-family homes and townhouses, not more than three stories, with expenses greater than $2,500. General contractors are not restricted.


Both of these types of contractors need to:



  • Obtain a bachelor's degree in a construction field from an accredited university or college, or have a combination of education and experience to qualify with the Secretary of State.

  • Demonstrate a net worth of $25,000 (residential contractors) and $150,000 (general contractors)

  • Provide proof of liability insurance.


Hawaii



Hawaii does not require licensure for contractors undertaking renovation and construction projects that need permits or work costing more than $1,000. Contractors need to have four years of supervisory experience in the last 10 years.


Contractor types are:



  • General building contractors

  • General engineering contractors

  • Specialty contractors


Idaho



The state does not license contractors. Contractors are required to register with the Idaho Contractors Board. During registration, provide:



  • A certificate of your workers' compensation insurance

  • A certificate of liability insurance of a minimum $300,000

  • A certificate of your business name from the Secretary of State


Illinois



  • State License Required: No

  • Registration Required: Regulated at the local level

  • Registration Fee: Contact your local government for fees and testing requirements


Illinois does not state-license-required contractors, except for roofing and plumbing licenses. Contact your local government to find out about contractor licensing requirements.


Indiana



  • State License Required: No

  • Registration Required: Regulated at the local level

  • Registration Fees: Check with your local government for fees and exam requirements


Contractor licenses are managed locally, unlike other for plumbers. Look to your city and county governments for regulations. Contractors who want to operate in Indianapolis go to the Department of Business and Neighborhood Services.


Iowa



  • State License Required: Yes

  • Registration Required: Yes

  • Registration Fee: Varies with time of application

  • Testing Requirements: Exams are needed for specialty contractors

  • Register at: https://dial.iowa.gov/


The Iowa Division of Labour mandates that all contractors engaged in construction work register if they have earned $2,000 or more annually. This encompasses home improvements, new construction, and alterations to buildings. Specialisations involving trade need individual registration. All applicants must provide an unemployment insurance number prior to application.


Kansas



  • State License Required: No

  • Registration Required: Regulated at the local level

  • Registration Fee: Contact your local government for fees and exam requirements


Kansas only requires asbestos abatement contractors and well drillers to obtain a state license. General contractors' or specialty contractors' requirements are regulated by the local government. Check with your city or county.


Kentucky



  • State License Required: No

  • Registration Required: Regulated at the local level (except specialty contractors)

  • Registration Fee: Check with your local government for fees and testing requirements


Kentucky only certifies plumbers, HVAC technicians, and electricians. The rest of the contractors look to their government to find out special requirements.


Louisiana



  • State License Required: Yes

  • Registration Required: Yes

  • Registration Fee: $100

  • Testing Requirements: Pass business, law, and trade exams

  • Register at: https://lslbc.louisiana.gov/


Louisiana needs a commercial building contractor's license for construction work over $50,000. A residential license is required for construction work over $75,000. Home improvement contractors register for construction work costing between $7,501 and $75,000. Mould remediation over $1 is licensed.


Maine



  • State License Required: No, plumbers, electricians, and asbestos remediation only

  • Registration Required: Regulated locally

  • Registration Fee: Check your local government for fees and exam requirements


General contractors are not required to be licensed. They need to obtain a business license. They also file contracts with the state for jobs above $3,000.


Maryland



The Maryland Home Improvement Commission mandates that home improvement contractors have a license. Electricians, plumbers, gas fitters, and air conditioning technicians must have licenses. Contractors are required to have two years of work experience. Contractors provide financial statements or surety bonds with their applications.


Massachusetts



Contractors apply for their construction supervisor license to the Office of Public Safety and Inspections. Home improvement contractors are not licensed. They register with the Office of Consumer Affairs and Business Regulation when they renovate one- to four-unit residential properties.


Michigan



Michigan is the state that requires contractors on jobs over $600 to obtain a Residential Builders License or a Maintenance and Alteration Contractor's License. They apply with the Bureau of Construction Codes.


Minnesota



  • State License Required: Yes

  • Registration Required: Yes

  • Price for Registration: $440

  • Testing Requirements: Pass business and law exams

  • Register at: https://www.dli.mn.gov/workers


Minnesota licenses builders, remodelers, and roofers through the Department of Labor and Industry when gross receipts are $15,000 or more. Electricians register with the Board of Electricity. Plumbers register with the Plumbing Board of Minnesota. Local-level licensing is required for HVAC.


Mississippi



  • State License Required: Yes

  • Registration Required: Yes

  • Price for Registration: $200 (residential); $400 (commercial)

  • Testing Requirements: Pass business management and law exams

  • Register at: https://www.msboc.us/contractors/licenses/


The state regulates contractor licensing through the Mississippi State Board of Contractors. Your contractor's license will be commercial or residential. The following classifications are:



  • Building construction

  • Highway, street, and bridge construction

  • Heavy construction

  • Mechanical and municipal

  • Public works


Some classifications may have more steps to qualify for a license.


Missouri



  • State License Required: No

  • Registration Required: Regulated at the local level

  • Registration Fee: Contact your local government to see what the fees and testing are


The state separates contractor classification for licensing into general contracting, roofing, plumbing, and electrical. Contenders gain a local-level license. Requirements and regulations vary by municipality.


Montana



Montana mandates that all contractors register with the state in the Department of Labor and Industry. Contractors who have employees, though, get a license. Independent contractors are those contractors who contract for themselves. Plumbers and electricians, whether with or without employees, are required to get a license.


Nebraska



When you're a subcontractor or contractor working in construction, you need to obtain a license from the Nebraska Department of Labour. The only exemptions: contractors earning below $5,000 annually. Contractors employing others also provide a workers' compensation certificate of insurance.


Nevada



Nevada requires contractors to get a license to practice in the state. They only exempt contractors who earn less than $1,000 for services rendered.


New Hampshire



  • State License Required: Not for general contractors

  • Registration Required: Regulated at the local level

  • Registration Fee: Contact your local government for fees and exams


The only contractors that must be licensed in the state are plumbers, asbestos workers, lead abatement workers, and electricians working on heat, power, and light circuits. Alarm electricians are not required to be licensed. General contractors contact their city or county to inquire about requirements.


New Jersey



  • State License Required: Home improvement contractors, home repair contractors who finance, and specialty contractors

  • Registration Required: Yes

  • Registration Fee: $110

  • Testing Requirements: None

  • Register at: https://www.njconsumeraffairs.gov/hic


New Jersey requires general contractors to register with the New Jersey Division of Licensing Department. Only home improvement contractors, plumbers, electricians, and home repair contractors who finance contracts need a license. The exception: a home repair contractor performing unfinanced work for less than 90 days.


New Mexico



  • State License Required: Yes

  • Registration Required: Yes

  • Registration Fee: $300

  • Testing Requirements: Pass business, trade, and law exams

  • Register at: https://www.rld.nm.gov/


In New Mexico, it is a requirement that contractors are licensed by the New Mexico Regulation and Licensing Department to safeguard consumers. The state has 100 classification types. Check for special requirements for your classification.


New York



  • State License Required: No

  • Registration Required: Regulated at the local level

  • Register Fee: Check with your local government for fees and testing requirements


New York only licenses crane operators and asbestos abatement specialists at the state level. They submit through the Department of Labour. The other contractors ask in their city or county.


North Carolina



  • State License Required: Yes

  • Registration Required: Yes

  • Registration Fee: $75 (limited license), $100 (intermediate license), $125 (unlimited license)

  • Testing Requirements: Pass the NASCLA exam

  • Register at: https://nclbgc.org/


Contractors who want to work in North Carolina get a general contractor's license from the NC Licensing Board for General Contractors when they are working on jobs costing more than $30,000. North Carolina also licenses plumbers, electricians, fire sprinkler experts, and HVAC professionals.


North Dakota



The state demands a license for those contractors on jobs that are equal to or more than $4,000. The Secretary of State licenses them. Candidates for contractors submit insurance proof and register their firm.


Ohio



  • State License Required: No

  • Registration Required: Regulated at the local level

  • Register Fee: Check your local government for fees and testing requirements


Ohio does not need plumbers, electricians, HVAC technicians, refrigeration, or hydronics experts to obtain a state license. The rest of the contractors verify with the local authorities to find out about licensing, registration, and exam requirements.


Oklahoma



  • State License Required: No

  • Registration Required: Regulated at the local level

  • Register Fee: Find out from your local government about fees and testing requirements


The state of Oklahoma only licenses electricians, plumbers, and mechanical HVAC professionals. Contractors need a business license. If you’re a general contractor, visit your city and county websites to learn licensing, registration, and exam requirements and fees.


Oregon



Home renovation professionals and residential contractors seeking to work in Oregon are licensed with the state. Exceptions to the above are:



  • Gutter cleaning specialists

  • Power washing experts

  • Debris removal firms

  • Real estate property management companies


Pennsylvania



  • State License Required: No

  • Registration Required: Regulated locally

  • Registration Fee: Contact your local government for fees and licensing tests


Pennsylvania certifies asbestos and lead abatement professionals only at the state level. Contractors register their firm with the Pennsylvania Attorney General's Office. Visit your city and county websites for contractor licensure, registration, and testing requirements.


Rhode Island



  • State License Required: Yes

  • Registration Required: Yes

  • Registration Fee: $200

  • Testing Requirements: Pass the general contractor's exam

  • Register at: https://crb.ri.gov/


Contractors who would like to do business in Rhode Island must have a license from the Contractor Registration and Licensing Board for the following work:



  • Residential construction

  • Commercial construction

  • Remodeling

  • Alterations

  • Repair


As a contractor, you also register your firm with the Secretary of State.


South Carolina



  • State License Required: Yes

  • Registration Required: Yes

  • Registration Fee: $350

  • Testing Requirements: Pass technical trade and business law exams

  • Register at: https://llr.sc.gov/res/pub.aspx


South Carolina mandates that residential home construction companies, home inspectors, and residential specialty contractors, such as electricians, plumbers, and HVAC professionals, obtain state-level licenses. Licensees also provide a surety bond.


South Dakota



  • State License Required: No

  • Registration Required: Regulated locally

  • Registration Fee: Contact your local government for fees and requirements on testing


South Dakota licenses electricians, plumbers, and asbestos abatement professionals at the state level only. Contractors looking to do work in South Dakota look to city and county government websites to find qualifications and requirements.


Tennessee



Tennessee requires general contractors to obtain a license when they provide a bid for projects over $25,000. Under $25,000, home improvement contractors, electricians, plumbers, and HVAC technicians are still licensed.


Texas



  • State License Required: No

  • Registration Required: Regulated at the local level

  • Price for Registration: Check your local government for fees and exam requirements


If you are not a contractor who deals in plumbing, HVAC, fire sprinkler systems, plumbing, or well drilling, you do not require a state license. Contact your city council to find out the qualifications and requirements for working as a general contractor within your municipality.


Utah



  • State License Required: Yes

  • Registration Fee: $250

  • Testing Requirements: Pass business and law exams

  • Register at: https://www.utclc.com/


If you’re a contractor living or wishing to work in Utah, you’ll need a state license. Utah issues licenses for more than 50 classification licenses, including:



  • General building contractor

  • Residential electrical contractor

  • Residential master plumber

  • Specialty contractor


Vermont



  • State License Required: No

  • Registration Required: Regulated at the local level

  • Registration Fees: Check with your local government for fees and testing requirements


Vermont does not license general contractors and home improvement contractors at the state level, other than plumbers, electricians, and HVAC professionals. Call your city and county to find out the requirements and local regulations for contractors.


Virginia



The Virginia Board for Contractors licenses individuals and businesses. The board decides your license class (A, B, or C) based on the dollar amount of projects that you do or manage.


Trade areas include:



  • Construction

  • Residential and facilities improvement

  • Repair

  • Electrical

  • Plumbing

  • Gas fitting

  • HVAC


Washington



  • State License Required: No

  • Registration Required: Register a business

  • Registration Fee: $118

  • Testing Requirements: Contact your local government for testing and further requirements

  • Register at: https://www.lni.wa.gov/


No license is required in Washington. Contractors and specialty contractors register their business with the Washington State Department of Labor and Industries. Contractors also inquire with their city and county governments for further qualifications and standards.


Washington, D.C.



  • State License Required: Yes

  • Registration Required: Yes

  • Registration Fee: $1,205 (4-year license) and $655 (2 license)

  • Testing Requirements: Check with the board

  • Register at: https://dlcp.dc.gov/node/1619081


If you reside in the D.C. metropolitan area and wish to conduct business in our U.S. capital, you will need to become licensed. It is the most expensive fee of the 50 states. Construction Project Managers and General Contractors obtain their license from the Department of Consumer and Regulatory Affairs. Specialty contractors are also required to be licensed.


West Virginia



  • State License Required: Yes

  • Registration Required: Yes

  • Registration Fee: $90

  • Testing Requirements: Pass business and law exams

  • Register at: https://wvclboard.wv.gov/


Contractors and subcontractors already obtain a license by way of the West Virginia Division of Labor when project costs are more than $2,500. In 24 months, on the Division website, they will transfer the responsibility. Contractors will register with the General Licensing Contractor Board.


Wisconsin



Wisconsin has some certifications that must be obtained by workers in residences. Contractors must also register.


Wyoming



  • State License Required: No

  • Registration Required: Regulated at the local level

  • Registration Fee: Contact the local government for fees and testing


Wyoming does not have a requirement to license contractors, except electricians. Contact your local government for contractor requirements and qualifications.


Every state has different contractor licensing regulations. You must check both local and state regulations before starting a job. Having the proper licensing frees you from ever being on the wrong side of the law and assists in running your business. Going through the right process instills in your client that you are a man of your word, reliable, and serious about anything you do. 




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