SmallBizHandbookSmallBizHandbook.com

Contractor License Requirements by State

Most states require contractors to be licensed. Requirements vary widely — some states license at the state level, others at the city or county level, and a few have no general contractor license at all.

Common Requirements

  • Pass a trade exam (business & law, plus technical for specialty trades)
  • Proof of general liability insurance (typically $1M minimum)
  • Surety bond (amounts vary by state, $5,000–$25,000 typical)
  • Workers' comp insurance (if you have employees)
  • Minimum years of experience (usually 2–4 years)
  • Background check (some states)

This is general information, not legal advice.