Contractor License Requirements by State: 2026 Complete Guide

Whether you need a contractor license, and what kind, depends entirely on where you work. Some states require a license for nearly every type of construction activity. Others have no state-level licensing at all and leave it to cities and counties. Getting this wrong can result in fines, project shutdowns, and legal liability.

This guide covers licensing requirements in all 50 states, with detailed breakdowns for the most active construction markets.

Contractor Licensing

Do You Need a Contractor License?

The short answer: in most states, yes, but the specifics vary dramatically.

Here is a quick way to determine your requirements:

1. Check your state's requirements using the tables below
2. Check your city and county, since many local jurisdictions require licenses even when the state does not
3. Determine which license type applies to your trade and project size
4. Verify threshold amounts, since some states only require licenses above a certain dollar amount

State-by-State Licensing Overview

The following table provides a high-level snapshot of every state. Detailed breakdowns for the top 20 states follow below.

States with Strict Licensing Requirements

These states have comprehensive licensing programs that cover most or all types of construction work. If you operate here, licensing is not optional.

California

California has one of the most rigorous contractor licensing systems in the country, administered by the Contractors State License Board (CSLB).

License types:

Key details:

• License required for any project over $500 (including labor and materials)
• Criminal background check required
• Fingerprinting required
• Workers' compensation insurance required if you have employees
• Continuing education not currently required for renewal

Operating without a license in California is a misdemeanor with fines up to $15,000 for a first offense.

Florida

Florida's licensing system is administered by the Construction Industry Licensing Board (CILB) under the Department of Business and Professional Regulation.

License types:

Categories: General Contractor, Building Contractor, Residential Contractor, Sheet Metal, Roofing, Class A/B/C Air Conditioning, Mechanical, Commercial Pool/Residential Pool, Plumbing, Underground Utility, Solar, Pollutant Storage

Requirements:

• Pass a two-part exam (trade + business)
• Financial statement demonstrating net worth and working capital
• Proof of insurance (general liability and workers' comp)
• Credit check
• 4 years of experience (or a combination of education and experience)

Arizona

Arizona's Registrar of Contractors (ROC) oversees one of the most comprehensive state licensing systems.

License classifications:

Requirements:

• Trade exam and business management exam
• $2,500 to $100,000 bond (based on license class)
• Workers' compensation insurance
• Designated responsible managing officer or qualifying party

Arizona posts all license information publicly through the ROC website, and homeowners frequently verify contractor licenses before hiring.

Nevada

Nevada's State Contractors Board requires licensing for virtually all construction work.

Key requirements:

• Pass trade and law/business exams
• Financial statement reviewed by the Board
• Minimum of 4 years experience in the classification applied for
• Surety bond ($1,000 to $500,000 depending on monetary limit)
• Insurance: general liability and workers' comp
• Monetary limit assigned to each license (caps the size of projects you can take)

Oregon

Oregon requires contractor licensing through the Construction Contractors Board (CCB) for all construction work.

License types:

Requirements:

• Pass the CCB exam
• Surety bond ($10,000 to $75,000 depending on license type)
• General liability insurance ($500,000 to $1,000,000 depending on type)
• Workers' comp insurance if applicable

States with Minimal or No State-Level Licensing

Several states do not require a state-level contractor license for general contracting. However, this does not mean you can work without any license. Local jurisdictions often fill the gap.

States with No State-Level General Contractor License

• Colorado
• Delaware
• Illinois
• Indiana
• Iowa
• Kansas
• Kentucky
• Maine
• Missouri
• New Hampshire
• New York (except NYC)
• Ohio
• Oklahoma
• South Dakota
• Vermont
• Wyoming

Critical note: In all of these states, cities and counties may require their own licenses, permits, and registrations. For example:

• New York City requires a license from the NYC Department of Buildings for general contractors, plumbers, electricians, and other trades
• Chicago requires contractor registration and trade-specific licenses
• Denver requires a contractor license for all construction work
• Columbus, OH requires contractor registration

Always check with your local building department before starting work.

Texas: A Special Case

Texas does not require a state-level general contractor license. However, several specialty trades require state licensing:

Many Texas cities also require local contractor registration. Houston, San Antonio, Dallas, and Austin all have their own requirements.

Detailed Requirements for Major States

Virginia

Virginia uses a tiered system based on project value:

All classes require passing the Virginia contractor exam. Class A and B applicants must also meet financial requirements and demonstrate experience.

North Carolina

North Carolina requires licensing for general contractors on projects valued at $30,000 or more.

License classifications:

• Building Contractor (Limited, Intermediate, Unlimited)
• Highway Contractor
• Public Utilities Contractor
• Specialty Contractor (Limited, Intermediate, Unlimited)

Requirements: Pass a written exam, demonstrate financial responsibility, and provide experience documentation. Unlimited classifications require the most extensive experience.

Washington

Washington State requires contractor registration through the Department of Labor and Industries (L&I).

Requirements:

• Register with L&I as a contractor
• Surety bond ($12,000 for general contractors, $6,000 for specialty)
• General liability insurance ($500,000 or proof of equivalent coverage)
• Workers' compensation coverage through the state fund or self-insurance
• Designate a competent person for each trade

Washington uses the term "registration" rather than "licensing," but the effect is the same: you cannot legally perform construction work without it.

Massachusetts

Massachusetts requires licensing for construction supervisors and specialty trades.

Key licenses:

• Construction Supervisor License (CSL): Required for anyone overseeing residential construction or renovation. Must pass a proctored exam.
• Home Improvement Contractor (HIC): Required registration for contractors doing residential work under $10,000.
• Specialty: Plumbing, electrical, sheet metal, and other trades have separate licensing boards.

Georgia

Georgia requires licensing at the state level for residential contractors and certain specialty trades.

• Residential: Basic, General, Light Commercial categories
• Utility Contractor: Gas, water, sewer, and related infrastructure
• Conditioned Air Contractor: HVAC installation and repair
• Low Voltage Contractor: Alarm, telecom, and low-voltage systems

Commercial general contractors in Georgia are not required to hold a state license but may need local licenses in most jurisdictions.

What Happens If You Work Without a License

The consequences of working without a required license are serious and vary by state:

Financial Penalties

Other Consequences

• Loss of lien rights: In most states, unlicensed contractors cannot file a mechanics lien. This means if a customer does not pay, you may have no legal recourse.
• Unenforceable contracts: Courts in many states (including California and Florida) have ruled that contracts with unlicensed contractors are void and unenforceable. You cannot sue to collect payment.
• Criminal charges: Many states classify unlicensed contracting as a misdemeanor. Repeat offenses can be charged as felonies.
• Insurance issues: Your general liability and workers' comp insurance may not cover claims arising from unlicensed work.
• Customer complaints: State licensing boards actively investigate complaints about unlicensed contractors, often triggered by dissatisfied customers.

Bond and Insurance Requirements

Most states that require contractor licenses also mandate some combination of bonds and insurance.

Surety Bonds

A surety bond protects customers if you fail to complete a project or violate state contracting regulations. Bond amounts vary by state and license type.

Insurance Requirements

How to Get Licensed: General Process

While every state's process is different, here is the general path:

Step 1: Verify Requirements

Contact your state's licensing board (see the table above) or visit their website. Determine which license classification applies to your trade and project type.

Step 2: Meet Experience Requirements

Most states require 2 to 4 years of verified experience in the trade. Some accept a combination of education and experience. You will typically need to document your experience through employer verification forms or affidavits.

Step 3: Pass Required Exams

Most states require one or two exams:

• Trade exam: Tests your knowledge of construction methods, materials, codes, and safety
• Business and law exam: Tests your knowledge of contract law, lien law, insurance, and business management

Study materials are available from your state licensing board and from third-party exam prep companies like PSI, Prometric, and state-specific prep courses.

Step 4: Obtain Bond and Insurance

Purchase your surety bond and insurance coverage before applying. Your licensing board will require proof of both.

Step 5: Submit Your Application

Complete your state's application, which will typically require:

• Completed application form
• Experience documentation
• Exam scores
• Bond certificate
• Insurance certificates
• Financial statement (some states)
• Fingerprints and background check (some states)
• Application fee ($100 to $500 in most states)

Step 6: Maintain Your License

After issuance, maintain your license by:

• Renewing on time (annually or biennially in most states)
• Completing any required continuing education
• Keeping your bond and insurance current
• Updating the board on any changes to your business

Beyond Your Contractor License: Other Essential Documents

A contractor license is just one piece of the paperwork you need to run a legitimate contracting business. In addition to your license, you will need:

• Business registration with your state's Secretary of State
• Federal EIN from the IRS
• Sales tax permit or resale certificate for purchasing materials tax-free in states that allow it
• City or county business license in your operating area
• Trade-specific permits pulled for each project

In addition to your contractor license, you will need a resale certificate to purchase materials tax-free for qualifying projects. This is separate from your contractor license and is issued by your state's tax authority, not your licensing board. See our construction materials sales tax guide for details on when contractors can buy tax-free. Get your resale certificate here -->

Key Takeaways

1. Most states require some form of contractor license, though the scope and requirements vary significantly.
2. Even in states without state-level licensing, cities and counties often require local licenses, permits, or registration.
3. Working without a required license can result in fines, criminal charges, loss of lien rights, and unenforceable contracts.
4. Bond and insurance requirements accompany licensing in most states.
5. The licensing process generally involves documenting experience, passing exams, obtaining a bond, and submitting an application.
6. Your contractor license is separate from your resale certificate. Both are essential for a properly set up contracting business.

Get Your Resale Certificate -->

Have questions about getting your business documents in order? Contact our team for guidance.

Related Articles

• Construction Materials Sales Tax: The Complete Guide - Once licensed, understand how sales tax applies to the materials you buy and install.
• How a Resale Certificate Helps Contractors Win More Bids - Use tax savings alongside your license to compete more effectively.
• Free Construction Bidding Sites Directory - Now that you are licensed, find projects to bid on with these free platforms.