In the United States, every construction market is overseen by a patchwork of state and sometimes city-level statutes that govern who may call themselves a “contractor.” The result is that a builder who is perfectly legal in Tallahassee might face stiff penalties for the same work in Savannah, only 200 miles away. This variation exists because:

  1. The U.S. Constitution reserves most occupational regulation to the states
  2. Lawmakers tailor rules to local economic conditions, climate, and consumer protection concerns

Proper licensing is far more than red tape. It establishes:

  • Legal compliance – Avoiding fines and criminal charges
  • Consumer protection – Through financial responsibility tests and background checks
  • Business credibility – Essential when bidding commercial or public work
  • Legal protections – Maintaining mechanics lien rights and insurance coverage

Disclaimer: Statutes, fees, and reciprocity agreements change frequently. Always confirm requirements with the official state licensing board or local building department before applying. This guide aggregates the most recent information available but should not be verified and is not legal advice.

Jump to State

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National Overview

Common License Classifications

Most states model their classifications on either the International Code Council (ICC) definitions or the National Association of State Contractors Licensing Agencies (NASCLA) matrix. The four broad license categories are:

  1. Residential Contractor – Single or two-family dwellings
  2. General Contractor – “Class A/B/C” or “Unlimited/Limited” tiers regulating project value or structural scope
  3. Commercial Contractor – Multi-family, high-rise, or other occupancies where life-safety codes are stringent
  4. Specialty Contractor – Individual trades such as electrical, HVAC, concrete, or low-voltage cabling

Classification Breakdown by State

ClassTypical Project ScopeExample States
Residential BuildingOne to four-family dwellings ≤ 3 storiesGA Residential-Basic, MS R-B
General Contractor – Class AUnlimited dollar amount, structural workCA “B”, VA Class A
General Contractor – Class BStructural but dollar-limited (e.g., ≤ $500k)CO Class B (local), VA Class B
General Contractor – Class CNon-structural or small jobs (e.g., ≤ $25k)VA Class C, NC $30k cap
Specialty/SubcontractorSingle trade; often dozens of categoriesAZ “CR-” codes, FL “Specialty Structure”

Core Requirements Across States

While specific requirements vary, most states share these common elements:

1. Business & Trade Experience

  • 2-4 years verifiable work history as journeyman, foreman, or supervisor
  • Documentation through W-2s, 1099s, or notarized affidavits

2. Financial Requirements

  • Net Worth/Working Capital: $10,000 – $50,000 minimum
  • Surety Bond: $5,000 – $75,000 (varies by state and license class)
  • Proof of bonding capacity for larger projects

3. Insurance Requirements

  • General Liability: $300,000 – $1,000,000 per occurrence
  • Workers’ Compensation: Per state statute requirements

Need help understanding contractor insurance options? Check out our comprehensive contractors insurance guide to learn about coverage types, requirements, and how to choose the right policies. For specific pricing information, see our detailed breakdown of contractor insurance costs by state, business size, and coverage levels.

4. Examinations

  • Trade Exam: NASCLA Accredited or state-specific test
  • Business & Law Exam: Open-book format, typically 70% passing score
  • Some states accept ICC certifications

5. Character & Background

  • Minimum age 18 years
  • FBI or state background check
  • Fingerprint submission in many states

6. Continuing Education

  • Required in ~60% of states
  • Typically 6-14 hours per renewal cycle
  • Focus on code updates, safety, and business practices

The NASCLA Effect & Reciprocity

The National Association of State Contractors Licensing Agencies (NASCLA) has standardized contractor licensing across participating states:

NASCLA Participating States (14 total)

  • Alabama, Arizona, Arkansas, Georgia, Louisiana, Mississippi, Nevada
  • North Carolina, Oregon, South Carolina, Tennessee, Utah, Virginia, West Virginia

Benefits of NASCLA certification:

  • Exam portability – Avoid retesting when moving between member states
  • Standardized testing – Consistent commercial general building contractor exam
  • Streamlined applications – Though each state still reviews financials and insurance

Additional Reciprocity Agreements

Many states maintain bilateral agreements outside NASCLA:

  • Louisiana-Mississippi compact
  • Nevada-California agreement
  • Regional agreements in the Southeast and Southwest

Important: Reciprocity rarely waives bonding requirements or application fees. Most agreements require 3-5 years of good standing in the original state.

Quick Reference Table

U.S. General Contractor Licensing at a Glance

StateLicense Required?Dollar/Scope ThresholdPrimary License ClassesCE RequirementsKey Reciprocity
AlabamaYes≥ $50k (GC) / ≥ $10k (Res)General Contractor, Residential HBNoneAZ, AR, LA, MS, TN
AlaskaYesAny residential workGeneral, Residential EndorsementNoneNone
ArizonaYesNone for B-1; B-2 ≤ $2MB-1, B-2, KB-1 (+ specialties)NoneCA, NV, UT
ArkansasYes≥ $2k res / ≥ $50k commCommercial A/B/C, ResidentialNoneLA, MS, TN
CaliforniaYes≥ $500 labor + materialsClass B, Class A, C-tradesVaries by tradeAZ, NV, LA
ColoradoNo (state level)Set by city/countyLocal A/B/C classificationsVaries locallyN/A
ConnecticutYesAny new res/alterationsMajor/Minor, HIC10 hrs/yearNone
DelawareBusiness License≥ $20k annual receiptsResident/Non-residentNoneNone
DCYesClass limits applyClass A/B/C6 hrs/2 yearsMD, VA
FloridaYes≥ $500CGC, CBC, CRC14 hrs/2 yearsLimited

(See complete 50-state table in State-by-State Requirements section)

States Without Statewide GC Licensing (16 total)

Local-only or Registration requirements: Colorado, Idaho*, Illinois, Indiana, Kansas, Kentucky, Maine, Missouri, Nebraska*, New Hampshire, New Jersey*, New York, Ohio, Oklahoma, Pennsylvania*, South Dakota, Texas, Vermont*, Wyoming

*Registration or limited requirements only

State-by-State Requirements

Below is the complete directory for all 50 states plus DC. Each entry follows the same format for easy reference.

Alabama

  • Authority: Alabama Licensing Board for General Contractors – (334) 272-5030
  • Website: genconbd.alabama.gov
  • License Classes: General Contractor (GC); Residential Home Builder; Subcontractor
  • Experience: 3 years verifiable supervisory (GC); 2 years (Residential)
  • Financial: $50,000 net worth (GC) | $10,000 (Residential)
  • Exams: NASCLA or AL trade + Business/Law (70% pass)
  • Insurance: $300,000 GL | Workers’ comp per statute
  • Fees: $300 application • $250 annual renewal
  • Project Limits: GC unlimited | Residential ≤ $75,000
  • Reciprocity: AZ, AR, LA, MS, TN
  • Notes: City permits still required with state license

Alaska

  • Authority: Dept. of Commerce, Contractor Registration – (907) 465-2060
  • Website: commerce.alaska.gov/web/cbpl
  • License Classes: General Contractor; Residential Contractor Endorsement; Specialty
  • Experience: 2 years for residential endorsement
  • Financial: Surety bond $10,000-$25,000 (tiered)
  • Exams: AK Residential Endorsement exam for residential work
  • Insurance: $200,000 bodily injury | $50,000 property damage
  • Fees: $300 initial • $235 biennial renewal
  • Project Limits: None at state level
  • Reciprocity: None (NASCLA not accepted)
  • Notes: Cold-climate code training recommended

Arizona

  • Authority: Arizona Registrar of Contractors – (602) 542-1525
  • Website: roc.az.gov
  • License Classes: B-1 General Commercial; B-2 General Small Commercial; KB-1 Dual; 100+ specialties
  • Experience: 4 years proven experience
  • Financial: Bond $9,000-$100,000 based on annual volume
  • Exams: NASCLA or AZ trade + Statutes/Rules (70% pass)
  • Insurance: Residential Recovery Fund (no GL minimum)
  • Fees: $720 for 2-year license
  • Project Limits: B-2 ≤ $2M single project; B-1 unlimited
  • Reciprocity: CA, NV, UT
  • Notes: License complaints posted online

Arkansas

  • Authority: Arkansas Contractors Licensing Board – (501) 372-4661
  • Website: aclb.arkansas.gov
  • License Classes: Commercial A/B/C; Residential Builder; Home Improvement
  • Experience: 2 years relevant management/field experience
  • Financial: $10,000 reviewed financial statement
  • Exams: NASCLA or AR trade + Business/Law
  • Insurance: $100,000 GL | $300,000 aggregate
  • Fees: $100 filing • $50 per classification
  • Project Limits: A: Unlimited, B: ≤$750,000, C: ≤$50,000
  • Reciprocity: LA, MS, TN; NASCLA accepted
  • Notes: Home Improvement license for $2,000-$50,000 on existing dwellings

California

  • Authority: Contractors State License Board (CSLB) – (800) 321-CSLB
  • Website: cslb.ca.gov
  • License Classes: Class B General Building; Class A General Engineering; 44 C-specialties
  • Experience: 4 years journeyman-level within past 10 years
  • Financial: Contractor bond $25,000 | Qualifier bond $25,000
  • Exams: Trade + Law/Business (72% pass each)
  • Insurance: Workers’ comp required if employees
  • Fees: $450 application • $200 initial • $450 biennial renewal
  • Project Limits: None statewide
  • Reciprocity: AZ, NV, LA (B-General & C-trades, 5-year good standing)
  • Notes: License number required in advertising

Colorado

  • Authority: No state-level GC license; local building departments only
  • State Trades: Electrical & Plumbing via state boards
  • Local Requirements: Denver, Colorado Springs, etc. issue A/B/C classifications
  • Notes: Verify requirements with specific city/county

Connecticut

  • Authority: Dept. of Consumer Protection – (860) 713-6135
  • Website: portal.ct.gov/DCP
  • License Classes: Major Contractor; Minor Contractor; Home Improvement (HIC)
  • Experience: 2 years for Major/Minor; none for HIC
  • Exams: PSI trade & Business/Law for Major/Minor
  • Insurance: Workers’ comp if employees
  • Fees: $500 (Major) | $220 (Minor) | $120 (HIC) annually
  • CE: 10 hours/year for CSL
  • Reciprocity: None
  • Notes: HIC includes $100 Guaranty Fund fee

Delaware

  • Authority: Dept. of Labor, Division of Construction – (302) 761-8200
  • Website: labor.delaware.gov
  • License Type: Business registration for tax/enforcement
  • Financial: $10,000 surety bond (non-resident)
  • Insurance: Workers’ comp for employees
  • Fees: $75-300 based on gross receipts
  • Reciprocity: None
  • Notes: Public works >$50,000 require DelDOT prequalification

District of Columbia

  • Authority: DC Dept. of Licensing & Consumer Protection – (202) 442-4400
  • Website: dlcp.dc.gov
  • License Classes: Class A (Unlimited); Class B (≤$10M); Class C (≤$1M)
  • Experience: 4 years for A/B; 2 years for C
  • Financial: $5,000 continuous surety bond
  • Exams: NASCLA or DC Business/Law + trade (70% pass)
  • Insurance: $500,000 GL
  • Fees: $654 initial • $554 biennial renewal
  • CE: 6 hours every 2 years
  • Project Limits: Per class designation
  • Reciprocity: MD & VA via metro agreement
  • Notes: Basic Business License required before permits

Florida

  • Authority: DBPR Construction Industry Licensing Board – (850) 487-1395
  • Website: myfloridalicense.com/dbpr
  • License Classes: Certified General (CGC); Building (CBC); Residential (CRC)
  • Experience: 4 years (1 year supervisory) or education combo
  • Financial: $20,000 net worth | Credit ≥660 or bond $10,000-20,000
  • Exams: 3-part exam – 70% each section
  • Insurance: $300,000 GL bodily injury; $50,000 property damage
  • Fees: $309-409 initial; $209-309 biennial renewal
  • CE: 14 hours/2 years (including specific requirements)
  • Reciprocity: Limited endorsements available
  • Notes: “Registered” license for single-county work

Georgia

  • Authority: State Licensing Board for Residential & General – (478) 207-2440
  • Website: sos.ga.gov
  • License Classes: General Contractor; Residential-Basic; Residential-Light Commercial
  • Experience: 4 years (GC); 2 years (Residential)
  • Financial: GC: $150,000 net worth or $25,000 bond
  • Exams: NASCLA for GC; PSI for Residential
  • Insurance: $500,000 GL (GC); $300,000 (Residential)
  • Fees: $200 exam • $100 license • $100 biennial renewal
  • Reciprocity: NC, SC, TN, LA, MS (NASCLA)
  • Notes: Lawful presence affidavit required

Hawaii

  • Authority: Contractors License Board – (808) 586-3000
  • Website: cca.hawaii.gov/pvl
  • License Classes: A General Engineering; B General Building; 96 C-specialties
  • Experience: 4 years supervisory within past 10 years
  • Financial: Audited statement or $50,000 surety bond
  • Exams: PSI trade + Business/Law (75% pass)
  • Insurance: $100,000 GL | $300,000 aggregate | Workers’ comp
  • Fees: $50 application • ~$663 full 3-year cycle
  • Reciprocity: Guam for A/B classes
  • Notes: Hawaii-based RME required

Idaho

  • Authority: Idaho Contractors Board – (208) 334-3233
  • Website: dopl.idaho.gov
  • License Type: Registration only
  • Requirements: $300,000 GL | Workers’ comp | Background affidavit
  • Fees: $150 initial | $75 annual renewal
  • Notes: Cities may require additional GC licenses

Illinois

  • Authority: No state-level GC license (except roofing/public works)
  • Local Requirements: Chicago, Aurora, Rockford issue GC licenses
  • Notes: Check Chicago Dept. of Buildings for city work

Indiana

  • Authority: No state-level GC license
  • Local Requirements: Indianapolis, Fort Wayne, etc.
  • State Trades: Plumbing and well drilling only

Iowa

  • Authority: Iowa Division of Labor – (515) 242-5871
  • Website: iowacontractor.gov
  • Registration: Required for all contractors
  • Requirements: Workers’ comp | Bond if out-of-state
  • Fees: $150 for 2 years
  • Notes: Separate licenses for mechanical trades

Kansas

  • Authority: No state-level GC license
  • Local Requirements: Johnson County, Wichita, etc.
  • State Licenses: Asbestos and lead abatement only

Kentucky

  • Authority: No state-level GC license
  • Local Requirements: Louisville, Lexington-Fayette
  • State Trades: HVAC, plumbing, electrical

Louisiana

  • Authority: State Licensing Board for Contractors – (225) 765-2301
  • Website: lslbc.louisiana.gov
  • License Classes: Commercial; Residential; Home Improvement
  • Experience: 4 years (Commercial); 3 years (Residential)
  • Financial: $10,000 net worth or bond
  • Exams: NASCLA (Commercial) or LA specific
  • Insurance: Workers’ comp required
  • Fees: $100-400 depending on class
  • CE: 6 hours annually (Residential)
  • Project Limits: HI: $7,500-$75,000; Res: >$75,000; Comm: >$50,000
  • Reciprocity: AL, AR, MS, NC, SC, TN, UT, VA, TX
  • Notes: Separate mold/solar registration

Maine

  • Authority: No state-level GC license
  • Local Requirements: Portland and other cities
  • State Licenses: Lead, asbestos, electrical, plumbing

Maryland

  • Authority: Maryland Home Improvement Commission – (410) 230-6309
  • Website: dllr.state.md.us/license/mhic
  • License Type: Home Improvement Contractor (covers most residential GC)
  • Experience: 2 years trade experience
  • Financial: $20,000 surety bond or liability certificate
  • Exams: PSI MHIC exam (70% pass)
  • Insurance: $50,000 GL minimum
  • Fees: $370 for 2 years
  • Reciprocity: None official
  • Notes: Commercial >$30,000 requires additional licensing

Massachusetts

  • Authority: Office of Public Safety & Inspections – (617) 701-8801
  • Website: mass.gov/construction-supervisor-license
  • License Classes: CSL (Unrestricted/Restricted/Specialty); HIC registration
  • Experience: 3 years in building construction
  • Exams: Prometric CSL exam
  • Insurance: $500,000 GL | Workers’ comp
  • Fees: $150 CSL (3 years); $150 HIC (2 years)
  • CE: 12 hours (Unrestricted) / 10 hours (Restricted) per 2 years
  • Project Limits: Restricted: 1-2 family ≤35,000 sq ft
  • Notes: Most projects need both CSL and HIC

Michigan

  • Authority: LARA – (517) 241-9316
  • Website: michigan.gov/lara
  • License Types: Residential Builder; Maintenance & Alteration
  • Experience: 3 years or equivalent education
  • Exams: PSI Business/Law + trade (81% pass)
  • Insurance: Workers’ comp if employees
  • Fees: $195 initial (3 years) • $185 renewal
  • CE: 21 hours first cycle; 3 hours thereafter
  • Notes: Online license lookup available

Minnesota

  • Authority: MN Dept. of Labor & Industry – (651) 284-5065
  • Website: dli.mn.gov
  • License Class: Residential Building Contractor (RBC)
  • Financial: $2M aggregate liability insurance
  • Exams: RBC two-part test
  • Insurance: $1M per occurrence GL + Workers’ comp
  • Fees: $680 initial; renewal based on revenue
  • CE: 14 hours every 2 years
  • Reciprocity: ND, SD for exam
  • Notes: DLI must be certificate holder on insurance

Mississippi

  • Authority: MS State Board of Contractors – (601) 354-6161
  • Website: msboc.us
  • License Classes: Commercial; Residential; Residential Remodeling
  • Experience: 3 years verifiable
  • Financial: $50,000 net worth (Commercial)
  • Exams: NASCLA or MS specific
  • Insurance: $300,000 GL (Residential)
  • Fees: $400 application | $100 per classification
  • CE: 2 hours (Residential)
  • Project Limits: Res ≥$10,000; Comm ≥$50,000
  • Reciprocity: AL, AR, GA, LA, NC, SC, TN
  • Notes: Out-of-state registration with Revenue Dept

Missouri

  • Authority: No state-level GC license
  • Local Requirements: St. Louis County, Kansas City, Springfield
  • State Licenses: Electrical/mechanical for public works

Montana

  • Authority: MT Dept. of Labor & Industry – (406) 444-7734
  • Website: dli.mt.gov
  • Registration: Required for all contractors
  • Requirements: Workers’ comp or exemption | $300,000 GL recommended
  • Fees: $70 for 2 years
  • Notes: ICEC available for sole proprietors

Nebraska

  • Authority: NE Dept. of Labor – (402) 471-2239
  • Website: dol.nebraska.gov
  • Registration: Required for all contractors
  • Requirements: Workers’ comp | Unemployment insurance
  • Fees: $40 annual
  • Notes: Electrical/plumbing licensed separately

Nevada

  • Authority: Nevada State Contractors Board – (702) 486-1100
  • Website: nscb.nv.gov
  • License Classes: A General Engineering; B General Building; C-specialties
  • Experience: 4 years journeyman/supervisory
  • Financial: Bond $1,000-$500,000 set by Board
  • Exams: Trade + CMS + Law; NASCLA accepted for B
  • Insurance: Workers’ comp required
  • Fees: $300 application • $600 license • $600 biennial
  • Project Limits: Individual monetary limit set
  • Reciprocity: AZ, CA, UT (4 years good standing)
  • Notes: Bid limit printed on license

New Hampshire

  • Authority: No state-level GC license
  • Local Requirements: By municipality
  • State Licenses: Asbestos/lead abatement only

New Jersey

  • Authority: Division of Consumer Affairs – (973) 504-6370
  • Website: njconsumeraffairs.gov
  • Registration: Home Improvement Contractor
  • Requirements: $500,000 GL | Background attestation
  • Fees: $110 for 2 years
  • Notes: Public Works registration separate

New Mexico

  • Authority: Construction Industries Division – (505) 476-4700
  • Website: rld.nm.gov/construction-industries
  • License Classes: GB-98 General Building; GS-29 Residential
  • Experience: 4 years within past 10 (2 years journeyman)
  • Financial: $10,000 code bond
  • Exams: Trade + Business/Law (75%)
  • Insurance: $300,000 GL minimum
  • Fees: $300 application • $150 per classification
  • Reciprocity: AZ, AR, LA, MS, NV, UT
  • Notes: Permits require licensed contractor

New York

  • Authority: No state-level GC license
  • Local Requirements: NYC Dept. of Buildings registration
  • State Licenses: Asbestos/lead only

North Carolina

  • Authority: NC Licensing Board for General Contractors – (919) 571-4183
  • Website: nclbgc.org
  • License Classes: Limited/Intermediate/Unlimited
  • Experience: 2 years (Limited); 4 years (Int/Unlimited)
  • Financial: $17,000-$150,000 working capital by class
  • Exams: Trade + NC Business/Law; NASCLA accepted
  • Insurance: Workers’ comp required
  • Fees: $75 application • $100-125 license/renewal
  • CE: 8 hours annually
  • Project Limits: Limited ≤$750,000; Intermediate ≤$1M
  • Reciprocity: AL, FL, GA, LA, MS, SC, TN
  • Notes: One qualifier per entity only

North Dakota

  • Authority: ND Secretary of State – (701) 328-3665
  • Website: sos.nd.gov
  • License Classes: Class A-D based on annual gross
  • Financial: Asset statement + $1,000 bond
  • Insurance: Workers’ comp + GL evidence
  • Fees: $90-450 based on class
  • Reciprocity: MN for RBC exam
  • Notes: Renew before March 1 annually

Ohio

  • Authority: No state-level GC license
  • Local Requirements: Cleveland, Columbus, Cincinnati
  • State Trades: HVAC, plumbing, electrical

Oklahoma

  • Authority: No state-level GC license
  • Local Requirements: Oklahoma City, Tulsa
  • State Licenses: Roofing and trades

Oregon

  • Authority: Oregon CCB – (503) 378-4621
  • Website: oregon.gov/ccb
  • License Classes: RGC; Commercial Level 1 & 2; Specialty
  • Experience: 16-hour pre-license training; 8 years for Commercial L1
  • Financial: Bond $20,000 (RGC) / $75,000 (Commercial L1)
  • Insurance: $500,000 GL (RGC) / $2M (Commercial)
  • Fees: $325 for 2 years
  • CE: 8 hours (Res) / 16 hours (Comm L1)
  • Reciprocity: WA exam waiver
  • Notes: CCB number required in advertising

Pennsylvania

  • Authority: PA Attorney General HIC Program – (717) 772-2425
  • Website: hic.attorneygeneral.gov
  • Registration: Home Improvement Contractor
  • Requirements: $50 registration
  • Notes: Philadelphia/Pittsburgh have separate GC licensing

Rhode Island

  • Authority: Contractors’ Registration & Licensing Board – (401) 921-1590
  • Website: crb.ri.gov
  • License Types: Residential Contractor License; Commercial Registration
  • Experience: 5 years or equivalent education
  • Exams: ICC Residential Contractor exam
  • Insurance: $500,000 GL | $1M aggregate
  • Fees: $200 for 2 years
  • CE: 2 hours per cycle
  • Reciprocity: MA & CT exam reciprocity
  • Notes: $5,000 penalty per violation

South Carolina

  • Authority: SC Contractor’s Licensing Board – (803) 896-4686
  • Website: llr.sc.gov/clb
  • License Classes: Groups 1-5 by project value
  • Experience: 2 years all groups
  • Financial: Net worth $0-$200,000 by group
  • Exams: NASCLA Building + SC Law
  • Insurance: Workers’ comp required
  • Fees: $135 application • $160-350 license
  • CE: 2 hours every 2 years
  • Project Limits: G1 ≤$5,000 up to G5 Unlimited
  • Reciprocity: AL, GA, LA, MS, NC, OH, TN, TX, VA
  • Notes: Separate Mechanical Contractor license

South Dakota

  • Authority: No state-level GC license
  • Local Requirements: Rapid City, Sioux Falls

Tennessee

  • Authority: TN Board for Licensing Contractors – (615) 741-8307
  • Website: tn.gov/commerce/regboards/contractors
  • License Classes: BC-A/B/C; Small Commercial; Residential Remodeling
  • Experience: 4 years for Qualifying Agent
  • Financial: Working capital ≥ license limit/10
  • Exams: NASCLA or TN specific
  • Insurance: Workers’ comp
  • Fees: $250 application • $200 license/renewal
  • CE: 8 hours (residential only)
  • Project Limits: Based on working capital
  • Reciprocity: AL, AR, GA, LA, MS, NC, OH, SC
  • Notes: Home Improvement license for $3,000-$25,000

Texas

  • Authority: No state-level GC license
  • Local Requirements: Houston, Dallas, Austin, San Antonio
  • State Trades: Plumbing, electrical, HVAC, fire sprinkler

Utah

  • Authority: DOPL – (801) 530-6628
  • Website: dopl.utah.gov
  • License Classes: B100 General; R100 Residential; E100 Engineering
  • Experience: 2 years + 25-hour pre-license course
  • Financial: Tax registration + Workers’ comp
  • Exams: Trade + Business/Law (70%); NASCLA accepted
  • Insurance: $100,000 per occurrence | $300,000 aggregate
  • Fees: $210 application • $93 biennial renewal
  • CE: 6 hours per cycle
  • Reciprocity: AZ, NV, LA, SC, TN
  • Notes: Owner-builder exemption once per 3 years

Vermont

  • Authority: VT Dept. of Fire Safety – (802) 479-7561
  • Registration: Residential contractors ≥$10,000 contracts
  • Requirements: Workers’ comp | 8-hour energy code course
  • Fees: $20
  • Notes: Commercial not yet regulated

Virginia

  • Authority: DPOR Board for Contractors – (804) 367-8511
  • Website: dpor.virginia.gov
  • License Classes: Class A/B/C by project value
  • Experience: 5 years (A); 3 years (B); 2 years (C)
  • Financial: Net worth $45,000 (A); $15,000 (B)
  • Exams: A/B require 3 exams; C none; NASCLA accepted
  • Insurance: Workers’ comp required
  • Fees: $385 (A) | $370 (B) | $235 (C) for 2 years
  • CE: Trade CE only (3 hours/2 years)
  • Project Limits: A: Unlimited; B: ≤$120,000; C: ≤$10,000
  • Reciprocity: MD, WV, NC, AL, LA, MS, SC, TN
  • Notes: Separate RME and QI designations

Washington

  • Authority: WA Dept. of Labor & Industries – (360) 902-5226
  • Website: lni.wa.gov
  • Registration: Required for all contractors
  • Financial: Bond $12,000 (General) | $6,000 (Specialty)
  • Insurance: $200,000 GL required
  • Fees: $124.70 for 2 years
  • Reciprocity: OR (bond/insurance waiver)
  • Notes: Prevailing wage affidavit for public projects

West Virginia

  • Authority: WV Contractor Licensing Board – (304) 558-7890
  • Website: labor.wv.gov
  • License Classes: General Building; Residential; Specialty
  • Experience: 2 years verifiable
  • Financial: CPA-reviewed statement; bid limit set
  • Exams: NASCLA or WV specific
  • Insurance: $300,000 GL; Workers’ comp
  • Fees: $90 exam • $150 annual license
  • CE: 5 hours annually
  • Project Limits: Per financial statement
  • Reciprocity: AL, MS, NC, OH, SC, TN, VA
  • Notes: Separate HVAC/plumbing certifications

Wisconsin

  • Authority: Dept. of Safety & Professional Services – (608) 266-2112
  • Website: dsps.wi.gov
  • License Types: Dwelling Contractor + DCQ (Qualifier)
  • Experience: DCQ must pass 12-hour course & exam
  • Financial: $25,000 bond or letter of credit
  • Insurance: $250,000 GL
  • Fees: $40 DCQ • $115 Contractor (2 years)
  • CE: 12 hours per cycle for DCQ
  • Notes: Both license numbers on permits

Wyoming

  • Authority: No state-level GC license
  • Local Requirements: Cheyenne, Casper, Laramie
  • State Licenses: Fire protection and electrical only

Comparison Tables & Charts

State Licensing Requirements Summary

Requirement TypeStates RequiringStates Not Requiring
State-level GC License35 states + DC16 states (local only)
NASCLA Exam Accepted14 states37 states + DC
Continuing Education~21 states~30 states + DC
Financial Statement~28 states~23 states + DC
Trade Experience~32 states~19 states + DC

Financial Requirements Comparison

RequirementLow EndHigh EndMost Common
Surety Bond$1,000 (ND)$500,000 (NV max)$10,000-25,000
Net Worth$10,000$250,000 (VA Class A)$25,000-50,000
GL Insurance$100,000$2,000,000$300,000-500,000

License Classification Patterns

  1. Dollar-Based Tiers (Most Common)
    • Unlimited/Limited structure
    • Specific thresholds ($50k, $100k, $500k, $1M)
    • Working capital multiples
  2. Scope-Based Classes
    • Residential vs. Commercial
    • Structural vs. Non-structural
    • New construction vs. Remodeling
  3. Hybrid Systems
    • Combination of dollar limits and scope
    • Separate endorsements for specialties
    • Progressive licensing paths

Tips for Navigating the Licensing Process

1. Document Your Experience Early

  • Keep detailed records: Job descriptions, project values, responsibilities
  • Collect supporting documents: W-2s, 1099s, employment letters on company letterhead
  • Get notarized affidavits: From supervisors or employers verifying your role
  • Photo documentation: Keep photos of completed projects with dates

2. Prepare for the Exam

  • Allocate study time: Minimum 40 hours for NASCLA or state exams
  • Use official resources: ICC, PSI, and Pearson VUE candidate bulletins
  • Take practice tests: Online quizzes and flashcard apps
  • Focus on weak areas: Business law often trips up trade professionals

3. Get Your Finances in Order

  • Review credit reports: Pull reports 6 months before applying
  • Build net worth: If below thresholds, consider letter-of-credit alternatives
  • Document assets: Bank statements, equipment lists, accounts receivable
  • Consider partnerships: Partner with financially qualified individuals if needed

4. Shop for Bonds and Insurance

  • Compare rates: Bond premiums typically 1-3% of bond value
  • Clean credit saves money: Good credit can reduce collateral requirements
  • Bundle policies: Combine GL and workers’ comp for 10-15% savings
  • Work with specialists: Use agents familiar with contractor requirements

5. Avoid Common Application Mistakes

  • Missing signatures: #1 reason for rejection
  • Expired bonds: Ensure continuous coverage
  • Entity mismatches: LLC vs. Inc. must match exactly
  • Incomplete forms: Double-check every field

6. Plan Your Timeline

  • Standard processing: 4-8 weeks
  • Fingerprint states: Add 4-6 weeks
  • Peak seasons: Spring applications take longer
  • Schedule accordingly: Don’t bid work until licensed

7. Maximize Reciprocity

  • NASCLA advantage: Take the exam once, use in 14 states
  • Maintain good standing: Most reciprocity requires 3-5 years clean record
  • Keep licenses active: Even if not currently working in a state
  • Document everything: Save pass letters and certificates

8. Stay Current

  • Track CE requirements: Don’t wait until renewal deadline
  • Upload certificates promptly: Many states have online portals
  • Calendar reminders: Set alerts 90 days before renewal
  • Budget for fees: Include in annual business planning

9. Build Professional Networks

  • Join associations: AGC, NAHB, local builder groups
  • Attend board meetings: Many are open to public
  • Connect with competitors: Share licensing tips and updates
  • Use social media: LinkedIn groups for contractors

10. Protect Your License

  • Avoid violations: Understand contract limits and scope
  • Maintain insurance: Lapses can trigger suspension
  • Respond promptly: To board inquiries or complaints
  • Keep records: 5-7 years of project documentation

Frequently Asked Questions

General Licensing Questions

Q: Can I work without a license? A: Not legally for projects above each state’s handyman threshold (typically $1,000-$5,000). Penalties include fines, stop-work orders, criminal charges, and loss of lien rights.

Q: What’s the difference between a general and specialty license? A: General contractors can manage multiple trades and structural work. Specialty licenses limit you to one trade (electrical, plumbing, HVAC). Some states like California allow B-General holders to self-perform only framing and carpentry.

Q: How do project-value limits work? A: Your license class sets the maximum single contract value. Exceed your limit and you’re effectively unlicensed for that project. Penalties apply per violation.

Q: Do I need licenses in multiple states? A: Yes, if working across state lines. Maintain a qualifying party and registered agent in each state. Use reciprocity agreements when available to simplify the process.

Q: What if my state doesn’t require a license? A: Check city and county requirements. Even in states without state-level licensing, major cities often require registration or licenses. Also verify trade-specific requirements.

Financial & Insurance Questions

Q: What’s the typical total cost to get licensed? A: Budget $2,000-5,000 including:

  • Application fees: $50-600
  • License fees: $100-750
  • Bond premiums: 1-3% of bond amount
  • GL insurance: $1,200-2,500/year for $1M coverage
  • Exam prep materials: $200-500

Q: Can I use personal assets for net worth requirements? A: Usually not. Most states require business assets. Personal guarantees may help secure bonds but won’t meet net worth tests.

Q: What if I can’t afford the bond? A: Options include:

  • Bond financing programs
  • Letters of credit
  • Cash deposits (some states)
  • Partner with qualified individuals
  • Start with lower license class

Exam & Education Questions

Q: How hard are the contractor exams? A: Pass rates average 55-70% first attempt. Trade exams test technical knowledge; business exams cover contracts, liens, labor law, and accounting. Most are open-book but time-pressured.

Q: Is the NASCLA exam worth taking? A: Yes, if you plan to work in multiple states. One exam accepted in 14 states saves time and money. The commercial general building exam is comprehensive but portable.

Q: How much continuing education is required? A: Varies widely:

  • None: ~60% of states
  • Minimal: 2-6 hours/year
  • Moderate: 8-14 hours/2 years
  • Extensive: 20+ hours/cycle (rare)

Focus areas: code updates, safety, business practices, ethics

Special Situations

Q: What about handyman exemptions? A: Most states exempt small jobs:

  • $500-1,000: Most restrictive states
  • $2,500-5,000: Common thresholds
  • $10,000+: Most permissive states

Exemptions typically exclude electrical, plumbing, HVAC, and structural work.

Q: Can I use one license for multiple companies? A: Rarely. Most states tie licenses to specific business entities. Some allow qualifying parties to serve multiple companies with board approval and proper documentation.

Q: What if I have a criminal record? A: Depends on:

  • Type of conviction
  • Time elapsed
  • Rehabilitation evidence
  • State policies

Many states consider applications case-by-case. Drug crimes and fraud are most problematic. Some states have automatic bars for certain offenses.

Q: How does workers’ comp exemption work? A: Sole proprietors and partners can often exempt themselves but must cover employees. Exemption forms required in most states. Corporate officers have varying rules by state.

Additional Resources

National Organizations

  • International Code Council (ICC)
    • Website: iccsafe.org
    • Certification exams and code resources
  • National Association of State Contractors Licensing Agencies (NASCLA)
    • Website: nascla.org
    • Exam bulletins and reciprocity information
  • Associated General Contractors of America (AGC)
    • Website: agc.org
    • Industry advocacy and education
  • National Association of Home Builders (NAHB)
    • Website: nahb.org
    • Residential construction resources

Insurance & Bonding

  • Major Surety Providers:
    • Contact us here at ContractorNerd
  • Insurance Resources:
    • Independent insurance agents specializing in construction
    • State insurance departments for coverage requirements
    • Trade associations for group programs
  • Small Business Administration (SBA)
    • Website: sba.gov
    • Business planning and financing resources
  • State-Specific Resources:
    • Secretary of State offices for entity formation
    • Department of Revenue for tax registration
    • Workers’ compensation boards for coverage requirements

Exam Preparation

  • Test Providers:
    • PSI Services
    • Pearson VUE
    • Prometric
    • ICC Assessment Center
  • Study Materials:
    • Contractor exam prep courses
    • Online practice tests
    • Trade-specific reference books
    • Code books and updates

Continuing Education

  • Approved Providers:
    • State contractor associations
    • Community colleges
    • Online CE platforms
    • Equipment manufacturers (for specific trades)

Stay Informed

  • Industry Publications:
    • Construction Dive
    • ENR (Engineering News-Record)
    • Builder Magazine
    • Remodeling Magazine
  • Legal Updates:
    • State licensing board newsletters
    • Construction law blogs
    • Trade association alerts

Conclusion

Navigating contractor licensing requirements demands attention to detail, financial planning, and ongoing compliance efforts. While the patchwork of state and local regulations can seem overwhelming, proper licensing provides:

  • Legal protection for your business
  • Access to larger, more profitable projects
  • Credibility with customers and partners
  • Framework for sustainable growth

Remember that licensing is just the beginning. Success in construction requires continuous learning, adaptation to new codes and technologies, and commitment to quality and safety.

Whether you’re starting your first construction business or expanding into new markets, use this guide as your roadmap. Always verify current requirements with official sources, as regulations change frequently.

Need More Help? Contact your state licensing board directly or consult with a construction attorney familiar with your local market. The investment in proper licensing pays dividends through expanded opportunities and protected operations.

Disclaimer: This guide provides general information only and should not be considered legal advice. Requirements change frequently. Always consult official state resources and qualified professionals before making licensing decisions.