Contractor Licensing Requirements
Please Click the State you wish to see more information on
All information updated as of July 20, 2009. Please check the website links of each state for the most current requirements, as they are subject to change.
TENNESSEE
Tennessee requires contractors for jobs $25,000 or more to be licensed. The initial license is good for one year and renewals are good for two years based on the renewal date.
TN State Contractors Board Link: http://tennessee.gov/commerce/boards/contractors/
- Exam Requirements: Applicants must have three years experience as well as pass the Business and Law Examination and applicable trade examination.
- Initial Application Fee: $250
- Initial Application Requirements: Financial Statements prepared by a licensed CPA with a Review Opinion for monetary limits of $1.5 million or less. Audited opinion for limits in excess of $1.5 million.
- Capital Requirements: 10 times the lesser of working capital and net worth. Unlimited license must show a minimum of $300,000 in working capital.
- Workers Compensation Requirements: Proof of workers compensation insurance:
- $500,000 or less = $ 100,000 General Liability Coverage
- $500,001 - $1,500,000 = $ 500,000 General Liability Coverage
- $1,500,000 - Unlimited = $ 1,000,000 General Liability Coverage
- License Renewal Fee: $200
- Reciprocity States: Alabama, Arkansas, Louisiana, Mississippi, North Carolina, South Carolina
ALABAMA
Alabama requires contractors for jobs $50,000 or more to be licensed. The initial license is good for one year. Renewals are staggered monthly based on the company's name good for a year based on the renewal date.
AL State Contractors Board Link: http://genconbd.alabama.gov/Default.htm
- Initial Application Fee: $300
- Initial Application Requirements: Financial Statements prepared by a licensed CPA with Compilation, Review or Audit Opinion. Financial Statements must be prepared on the application form.
- Capital Requirements: 10 times the lesser of working capital and net worth. Unlimited license must show a minimum of $300,000 in working capital.
- License Renewal Fee: $200
- Reciprocity States: Arkansas, Louisiana, Mississippi, and Tennessee
GEORGIA
Georgia requires contractors for jobs $2,500 or more to be licensed. The initial license is good for one year and renewals are good for two years based on the renewal date.
GA State Contractors Board Link: http://sos.georgia.gov/plb/contractors/default.htm
- Exam Requirements: Applicants must pass an appropriate examination for the type of contractor desired: Residential-Basic, Residential-Light Commercial, or General Contractor.
- Initial Application Fee: $200
- Initial Application Requirements: Audited or reviewed financial statements prepared by a CPA.
- Capital Requirements: Minimum Net Worth of $150,000 and minimum line of credit of $50,000.
- Workers Compensation Requirements: Certificate of Insurance showing proof of general liability insurance in a minimum amount of $500,000 per occurrence.
- Reciprocity States: None
ARKANSAS
Arkansas has separate licensing for commercial and residential contractors. Commercial License is required for jobs $20,000 or more. Residential License is required for jobs $20,000 or more
AR State Contractors Board Link: http://www.state.ar.us/clb/
- Exam Requirements: Must score 70% on open book examination, pertaining to business law and the responsibilities of contractors in the State of Arkansas. Exam fee is $75
- Initial Application Fee: $100
- Initial Application Requirements:
- Commercial
- Five years experience in their trade
- File a surety bond of $10,000
- CPA Audited financial statement (showing positive net worth)
- Residential
- Four years experience in their trade
- Compiled financial statement (showing positive net worth)
- License Period: 1 year (from date of financial statement)
- Renewal Fee: $50 ($100 if not renewed timely)
- Renewal Requirements:
- Commercial
- Renewal application
- CPA audited or reviewed financial statement (showing positive net worth)
- Residential
- Renewal application
- Compiled financial statement (showing positive net worth)
- Reciprocity States: Alabama, Louisiana, Mississippi, and Tennessee
- Commercial
FLORIDA
Florida has two types of licenses - registration and certification. Renewals are every two years and require 14 hours of continuing education for each 2 year renewal cycle.
FL Department of Business and Professional Regulation: http://www.myflorida.com/dbpr/index.html
- Exam Requirements: Must score 70% on written exam covering business, finance, and construction subjects. Exam fee is $135
- Initial Application Fee: $409 for Certified License and $309 for Registered License.
- Initial Application Requirements: Documentation of 4 years of experience, provide a credit report, provide a financial statement that is not more than 4 years old.
- Capital Requirements: Net worth ranging from $2,500 to $20,000 depending on the classification.
- License Period: 2 years
- Renewal Fee: $209 for certified license and $59 for registered license
- Reciprocity States: None - however, individuals licensed in another state may obtain a renewable registration to complete a single project in Florida.
KENTUCKY
Currently Kentucky does not license General Contractors at the State Level. However, plumbing, HVAC, electrical, fire protection systems and boiler contractors are required to be licensed. General Contractors may have local licensing requirements.
Kentucky licenses are handled through the KY Department of Housing, Buildings & Construction: http://dhbc.ky.gov/
LOUISIANA
Louisiana has separate licensing for commercial and residential contractors. Commercial License is required for jobs $50,000 or more. Residential License is required for jobs $75,000 or more.
LA State Contractors Board Link: http://www.lslbc.louisiana.gov/index.asp
- Exam Requirements: Must score 70% on examination, pertaining to specific trade as well as business law. Exam application fee is $100 plus $35 transaction fee and $25 for background investigation fee.
- Initial Application Fee: $100 ($400 one time surcharge if out of state)
- Initial Application Requirements:
- Commercial
- CPA audited, reviewed or compiled financial statement, written references from financial institutions and material supplier or contractor.
- Copy of Certificate of Good Standing/Certificate of Existence filed with the LA Secretary of State as well as Articles of Incorporation/Organization.
- Residential
- Insurance Certificate for worker's compensation for statutory limits and liability coverage for a minimum of $100,000.
- Copy of Certificate of Good Standing/Certificate of Existence filed with the LA Secretary of State as well as Articles of Incorporation/Organization.
- CPA Compiled financial statement
- License Period: 1 year
- Renewal Fee: $100
- Renewal Requirements - renewal can be done online
- Reciprocity States: Alabama, Arkansas, Mississippi, South Carolina, Tennessee, and Utah
MISSISSIPPI
Mississippi has separate licensing for commercial and residential contractors. Commercial License is required for jobs $100,000 or more. Residential License is required for jobs $50,000 or more for building and $10,000 or more for remodeling. Residential License holders can build commercial properties up to 7,500 sq. ft. without commercial license.
MS State Contractors Board Link: http://www.msboc.us/
- Exam Requirements: Must score 70% on examination, pertaining to business law and a specific trade.
- Initial Application Fee: $200 Commercial and $50 for Residential
- Initial Application Requirements:
- Insurance Certificate showing current insurance minimum coverage of $300,000 per occurrence and $600,000 aggregate for general liability purposes. Applicant must also show proof of current worker's compensation coverage.
- CPA reviewed financial statement with working capital of at least $20,000 and net worth of $50,000.
- License Period: 1 year
- Renewal Fee: $200 Commercial, $100 Residential
- Renewal requirements - one page form requiring certain insurance information
- Reciprocity States: Alabama (must take MS Business Law exam), Arkansas (certain classes), Louisiana (certain classes), Tennessee, and South Carolina (certain claases)
NORTH CAROLINA
North Carolina has three classes of licenses - Limited (up to $500,000 on any single project); Intermediate (up to $1,000,000 on any single project); and Unlimited (no restrictions on the value of a single project). Jobs costing $30,000 or more are required to have license.
NC State Contractors Board Link: http://www.nclbgc.net/index.html
- Exam Requirements: Must score 70% on qualifying examination, pertaining to business law and a specific trade. Exam fee for all three license types is $60.
- Initial Application Fee: $75 for Limited, $100 for Intermediate, and $125 for Unlimited
- Initial Application Requirements:
- Financial statement with required minimum working capital amounts: $17,000 for Limited: $75,000 for Intermediate; $150,000 for Unlimited. Intermediate and Unlimited License must submit audited financial statements prepared by a CPA
- License Period: 1 year
- Renewal Fee: $75 for Limited, $100 for Intermediate, and $125 for Unlimited
- Renewal requirements - evidence of continued financial repsonsibility
- Reciprocity States: Tennessee, and South Carolina
SOUTH CAROLINA
South Carolina requires licensing for residential and commercial jobs costing over $5,000 or more. South Carolina has separate requirements for Residential and Commercial Builders.
SC State Contractors Board Link: http://www.llr.state.sc.us/POL/Contractors/
- Exam Requirements:
- Residential - must score 70% on qualifying examination, pertaining to business law and a trade. Exam fee is $90.
- Commercial - must complete a technical and business management law exam, as well as a SC Code of Laws exam (take home) and show two years work experience. Exam fee is $60-$75 depending on classification.
- Initial Application Fee:
- Residential - $100 plus License/Registration Fee of $160
- Commercial - $350
- Initial Application Requirements:
- Residential - Documentation of one year of experience and credit check. Bond for $15,000 OR personal financial statement verifying net worth of $50,0000
- Commercial - Experience record showing 2 years work experience and financial statements. Financial Statements are broken into classes depending on desired contract amount as follows:
- Group 1 (Contract limit = $30,000): Owner prepared Financial Statement with affidavit of accuracy. Must show a minimum net worth of $6,000.
- Group 2 (Contract limit = $100,000): Owner prepared Financial Statement with affidavit of accuracy. Must show a minimum net worth of $20,000.
- Group 3 (Contract limit = $350,000): Financial Statement compiled by a licensed CPA. Must show a minimum net worth of $70,000.
- Group 4 (Contract limit = $750,000): Financial Statement compiled by a licensed CPA. Must show a minimum net worth of $150,000.
- Group 5 (Unlimited): Financial Statement audited by a licensed CPA. Must show a minimum net worth of $250,000.
- License Period: 2 years
- Renewal Fee: $160 for Residential and $350 for Commercial
- Renewal requirements - same as initial requirements, however Group 5 Commercial Renewals can submit CPA Reviewed Financial Statements rather than audited.
- Reciprocity States: Residential - Mississippi, North Carolina, and Utah. Commercial - Louisiana, Mississippi, North Carolina, Tennessee, and Utah (selected classes).
VIRGINIA
Virginia requires contractors licenses for construction work in excess of $1,000. Contractors licenses are issued to businesses and not to individuals. Contractors are broken out into three classes: Class A - single contracts of $120,000 or total projects undertaken within any twelve-month period is $750,000 or more; Class B - single contract or project is $7,500 or more, but less than $120,000, or total projects undertaken within any twelve-month period is $150,000 or more, but less than $750,000; and Class C - single contract or project is over $1,000 but no more than $7,500, or total projects undertaken within any twelve-month period is no more than $150,000
VA State Contractors Board Link: http://www.dpor.virginia.gov/dporweb/con_main.cfm
- Exam Requirements:
- Class A & Class B - Businesses must have a member of responsible management or the individual taking the licensing examination complete a pre-license education course approved by the Board of Contractors. Exam fee is $85, pre-license education fees depend on provider. Class C Licenses have no exam requirement.
- Initial Application Requirements:
- Class A - submit annual report, completed financial statement on application form OR CPA reviewed balance sheet. Must show net worth of at least $45,000. Designee must have minimum of 3 years experience.
- Class B - Representation on the application form that net worth requirement of $15,000. Designee must have minimum of 3 years experience.
- Class C - Have a minimum of two years experience.