Contractor Business and Law Exam by State: Who Takes It and How

In the 21 states covered here, the qualifier for a contracting company has to pass a business or law exam for at least some license types, and the name changes by state: Florida calls it Business and Finance, Arizona calls it Statutes and Rules, Nevada calls it the Contractor Management Survey, and many others call it Business and Law. Each state's board assigns the testing vendor (PSI, Prov, Pearson VUE, Professional Testing, or the board itself), and the vendor's candidate bulletin sets the number of questions, the time, the passing score and whether the exam is open book.

At a glance

• A business or law exam is required for at least some contractor licenses in every state in the table below, each from the board page or bulletin named in Sources.
• Among the exams that state one question count, it runs from 40 (North Carolina) to 120 (Florida), and percentage passing scores run from 68 percent (South Carolina residential) to 75 percent (Hawaii, Nevada, New Mexico).
• PSI runs most of these exams, Prov runs them in Tennessee (since July 1, 2026), Utah and West Virginia, and Louisiana's board gives its own online course and exam.
• In Georgia, Mississippi and Oregon, and for South Carolina commercial candidates, passing a NASCLA exam does not excuse the state's own business and law exam.
• Checked against each state board page and testing vendor candidate bulletin listed in Sources on October 16, 2026.

What the exam covers and who sits it

A business and law exam is not a trade exam. It tests how to run a contracting company legally: licensing rules, estimating and bidding, contracts, taxes, labor laws, liens, risk management and safety. Georgia's bulletin, for example, spreads its 50 questions across nine such subject areas.

The person who sits it is the qualifier for the company, not always the owner. If you are still deciding whether you need a license at all, start with our overview of the contractor license, and for the approval side see contractor exam approval by state.

The exam in 21 states

Every figure comes from the board page or bulletin named in the state notes, and bulletin dates are the dates printed on the documents. Vendors reissue bulletins, so confirm the current one before you register.

State notes and citations

• Alabama. The PSI bulletin (updated January 23, 2026) calls Business and Law, formerly the General Contractor exam, required of all general contractors. The board's testing page adds that applications received since January 22, 2008 take a trade exam as well.
• Arizona. The Registrar of Contractors provides the SRE itself, as an online-only course with a test. PSI's bulletin (February 18, 2026) says it is required for new applicants who were not the qualifying party on another Arizona contractor license in the last five years, and that the person acting as qualifying party completes it. The bulletin gives no question count or time, so confirm those with the board, and it says waivers exist under specific conditions.
• Arkansas. The commercial and residential builder applications (January 2025) require a copy of the passing score. The board's instruction sheet says PSI gives it, open book, multiple choice, 50 questions, 2 hours, and does not state a passing score. The application lists one exemption, for a sole proprietor who is military, former military or the spouse of one and holds another state's current contractor license.
• California. The Contractors State License Board says an applicant passes two exams, Law and Business and Trade (no Trade exam for C-61 Limited Specialty), and that a waiver is possible under certain conditions. Its Application Accepted page says testing is performed at PSI Exams and gives 3.5 hours per exam. A failed exam can be retaken after 21 calendar days, and that page says exam results are good for five years, so a candidate who passes one exam and fails the other retakes only the failed one within that time. CSLB's pages give no question count or passing score for Law and Business.
• Florida. The Construction Industry Licensing Board has Professional Testing, Inc. register candidates, and Pearson VUE schedules and gives the computer exams. Business and Finance has 120 scored questions in 6.5 hours (60 questions in 3.5 hours for the Service Pool), and the booklet sets 70 percent to pass. Division I contractors take it with Contract Administration and Project Management, and Division II contractors take it with a trade knowledge exam. The booklet says a candidate adding another category may be exempt from retaking it. Electrical contractors have a Business section of 50 scored questions in 2.5 hours, open book, through Pearson VUE (booklet, February 2026). Our full guide is Florida Business and Finance exam.
• Georgia. The board says every residential or general contractor candidate passes Business and Law, and one pass counts for every other residential and general license. PSI's bulletin (updated April 28, 2025) lists 50 questions, 35 correct, 2 hours, open book. General Contractor candidates also pass the NASCLA accredited exam. Rule 553-2-.13 covers General Contractor applicants from a state with a reciprocal agreement and requires them to pass the Georgia Business and Law exam. The Construction Industry Licensing Board's November 2024 conditioned air handbook describes one trade exam with a Regulations, Laws and Administrative Functions section inside it, not a separate Business and Law exam. See Georgia Business and Law exam.
• Hawaii. PSI's bulletin (January 20, 2026) says all new applicants approved to test take Business and Law, while a licensed contractor adding a classification does not retake it. It states the exam is closed book.
• Louisiana. The board runs this one. Its "What Happens After I Apply" page says a qualifier who has not taken the Louisiana Business and Law course gets an Examination Approval Notice and completes the course in the LSLBC Contractor Portal, with a 50-question test of about 30 to 45 minutes and 70 to pass. The qualifying party forms (revised September 17, 2025 and January 30, 2026) call it an online course with an exam at its conclusion, say each licensee needs at least one qualifying party for it with no exceptions, and limit NASCLA building credit to the building construction and residential construction trade exams. Trade exams moved to PSI on August 5, 2025. See Louisiana Business and Law exam.
• Maryland. PSI's bulletin for the Home Improvement Commission (updated October 10, 2025) lists a 55-item contractor exam on home improvement law, the Door-to-Door Sales Act, labor laws, safety and estimating. PSI must approve you before you test, and results are valid for two years.
• Michigan. PSI's handbook (updated August 3, 2026) combines the Business and Law section with the Residential Builder practice part: 160 questions in 240 minutes, passing raw score 116, closed book. Maintenance and Alteration contractors answer business and law questions with each trade exam.
• Mississippi. PSI's bulletin (updated April 23, 2026) says the exam is mandatory for all commercial and residential applicants. The board says reciprocity waives a trade exam only.
• Nevada. PSI's bulletin (March 25, 2026) gives the Contractor Management Survey 60 scored items. The board's page calls it the general business and law or CMS exam, open book, with three attempts. Its endorsement page says the qualified individual must still pass the Nevada Business and Law exam when a trade exam is waived.
• New Mexico. PSI's bulletin (updated April 3, 2026) marks it required of all new candidates. A contractor passes the exam or takes an approved Business and Law course, and the bulletin says both exams must be passed "within one year of each other."
• North Carolina. PSI's bulletin (updated November 19, 2025) lists the Business and Law exam. Rule 21 NCAC 12A .0402(b) says all applicants, including reciprocity applicants, are tested on the Board's laws and rules, and rule .0303(c) adds that reciprocity applicants pass the Board's North Carolina law, rule and building code exam. Whether your classification needs the stand-alone exam is a question for the board.
• Ohio. The bulletin (updated February 7, 2024) says all commercial contractor classifications take Business and Law with any trade exam. It has 50 scored questions plus 5 unscored, and a pass carries over for three years if you add a trade.
• Oregon. The Construction Contractors Board requires the responsible managing individual, an owner, officer, partner or employee of the business who manages or supervises construction, to finish 16 hours of pre-license training and pass the Oregon exam (56 of 80 correct). The CCB page names PSI as its testing vendor. An applicant who passed the NASCLA commercial general building exam skips the training but still passes the Oregon exam. The license application is due within 24 months of passing.
• South Carolina. The Contractors' Licensing Board says that "regardless of how you are applying for licensure," all individuals must pass the business exam before requesting qualifying party certification. The commercial bulletin (updated August 27, 2026) lists 35 of 50 correct, and NASCLA candidates still take the state business and law exam. For residential builders, the Residential Builders Commission licensure page says the SC Business Management and Law Exam is still required when the technical exam is waived, and its bulletin (updated October 9, 2026) lists 34 of 50 correct and says all candidates pass it with their trade exam. See South Carolina Business and Law exam.
• Tennessee. The Board for Licensing Contractors says Prov began administering its exams on July 1, 2026 and that contractor applicants take Business and Law. Prov's bulletin (dated August 18, 2026, "new licensees only") notes that a classification with no trade exam still takes it. The classification outline says the BC-A/r restricted residential license uses an approved course in place of the residential trade exam. See Tennessee Business and Law exam.
• Utah. The Division of Professional Licensing lists B100, E100, H100, R100, E200, E201, P200 and P201 as requiring the exam, run by Prov. The division's general contractor page lists two alternatives to the Utah exam: one year of licensed experience in another state, in a similar scope of practice, if that license is currently active and in good standing, or having been a qualifier on a Utah contractor license before May 9, 2017. Confirm with DOPL whether either applies to you.
• Virginia. A Class A or Class B firm's designated employee takes a Virginia portion (24 items, 18 to pass, 48 minutes), a General portion (50 items, 35 to pass, 100 minutes) and, for Class A, an Advanced portion (24 items, 17 to pass, 60 minutes). The bulletin says they are open book and not required for Class C. The board's page lists exam waivers with North Carolina and Ohio and a separate 8-hour pre-license education requirement.
• West Virginia. Prov's bulletin (May 7, 2026) says every contractor takes the Contractor Licensing Act exam in addition to any trade exam. The qualifying individual must be part of responsible management or a full-time employee of the entity seeking the license.

Where NASCLA and other states fit

NASCLA's accredited exams exist to cut repeat testing, and the bulletins read here treat them as a stand-in for a state's trade portion. Georgia requires the NASCLA exam and Business and Law together, South Carolina commercial candidates who take NASCLA still pass the state business and law exam, Mississippi lists NASCLA as an optional multi-state step beside its required exam, and Oregon still requires its own exam. Our guide to NASCLA exam accredited states covers which boards accept which NASCLA exam.

Another state's license shortens the process in some states and not at all in others. Start with contractor license reciprocity by state, then the state pages for Tennessee, Georgia, North Carolina, South Carolina, Alabama and Louisiana.

Steps to take

1. Find your state in the table and open the board page and the current candidate bulletin from Sources.
2. Confirm which license type you are applying for and who at your company must sit the exam.
3. Get the board's approval first where the bulletin requires it: Alabama, Georgia, Maryland, Mississippi, Nevada and North Carolina all do.
4. Read the bulletin's reference list. Where a board requires reference books, the bulletin lists them and the rules on tabs and markings.
5. Schedule with the board's assigned vendor, using our guide to scheduling a contractor exam with PSI, Prov or Pearson VUE.
6. Sit the exam. If you fail, read the retake limits first: Georgia's bulletin allows two attempts on a first approval and a one year wait before a third, and California requires 21 calendar days between attempts. See what to do after a failed contractor exam.
7. Send the score to the board with your application and watch the clock. Maryland scores are valid for two years, and Oregon wants the license application within 24 months of the exam.

Our own live exam prep classes are coming soon at the exam prep tour.

Questions people ask

Does every state require a separate business and law exam? Not in the same way. Of the 21 states above, Michigan builds the section into a combined exam, Florida calls its version Business and Finance, and Arizona and Louisiana run a board-provided course and exam. For a state not in the table, confirm with the board.

Is the exam open book? It depends on the bulletin. Hawaii and Michigan say closed book. Alabama, Arkansas, Florida, Georgia, Maryland, Mississippi, Nevada, New Mexico, North Carolina, Ohio, Oregon, South Carolina, Tennessee, Utah, Virginia and West Virginia say open book, and Utah's bulletin says open book. The Arizona, California and Louisiana pages I read do not say.

Can a NASCLA exam replace the business and law exam? In the bulletins and forms read here, no. Georgia, Mississippi, Oregon and South Carolina commercial still require their own exam, NASCLA results stand in for a trade exam where a board accepts them, and Louisiana's form limits NASCLA building credit to two trade exams. Confirm with your board before you pay for a NASCLA sitting.

Does the owner have to take it? Often the qualifier does, and who counts depends on the state. West Virginia, for example, requires the person to be part of responsible management or a full-time employee. See whether the owner takes the contractor exam.

Do I have to retake it for a second license? Sometimes not. Georgia says one pass meets the requirement for all other residential and general licenses, Ohio carries a pass for three years, Hawaii excuses a licensed contractor adding a classification, and Louisiana does not require it for a new qualifying party when an active qualifier already holds it on the license.

Which books do I need? The board's bulletin lists them. Open your state's bulletin in Sources and read its reference list, because editions change.

When the exam is the obstacle

When a license cannot move by reciprocity, or a person cannot sit or pass the exam in time, a company can still be licensed through a qualifying agent who already holds the license and qualifies the company as an owner or full time W-2 employee who supervises the work. The qualifier carries the exam record, the company carries the business, and the board decides whether the arrangement meets its rules. You can read how that works on what a qualifying agent is, see how to hire a qualifying agent, or learn about our contractor qualifier services. Planning several states at once? See our licensing services in all 50 states.

Talk with people who hold these licenses

Marshall Schofield and Jeremiah Jaskulski are licensed general contractors, master electricians, master plumbers and master mechanical. If you want to know which exam your state expects and whether a qualifying agent fits your plans, call 615-219-2110 or start at HireAQualifyingAgent.

Sources

All sources were retrieved October 16, 2026.

• Alabama Licensing Board for General Contractors, Testing and PSI Alabama general contractors bulletin (updated January 23, 2026).
• Arizona, PSI Registrar of Contractors bulletin (February 18, 2026).
• Arkansas Contractors Licensing Board, commercial new application and residential builder new application (January 2025).
• California Contractors State License Board, applicants page, examination FAQ and exam application accepted page.
• Florida Department of Business and Professional Regulation, Construction examinations, Examinations at a glance (June 2024), Construction candidate information booklet (July 2024) and Electrical candidate information booklet (February 2026).
• Georgia, PSI State Licensing Board for Residential and General Contractors bulletin (April 28, 2025), Georgia Rules 553-2 and the Construction Industry Licensing Board conditioned air handbook (November 2024).
• Hawaii, PSI contractor examinations bulletin (January 20, 2026).
• Louisiana State Licensing Board for Contractors, What happens after I apply, checklist of items required, application for qualifying party, adding a qualifying party and test registration and scheduling.
• Maryland Home Improvement Commission, PSI candidate information bulletin (October 10, 2025).
• Michigan Department of Licensing and Regulatory Affairs, PSI builder, Maintenance and Alteration contractor and salesperson handbook (August 3, 2026).
• Mississippi State Board of Contractors, testing, reciprocity and PSI contractor examinations bulletin (April 23, 2026).
• Nevada State Contractors Board, License examinations, Licensure by endorsement and PSI Contractor Management Examination bulletin (March 25, 2026).
• New Mexico, PSI contractor examinations bulletin (April 3, 2026).
• North Carolina Licensing Board for General Contractors, PSI candidate information bulletin (November 19, 2025) and Chapter 12 rules.
• Ohio Construction Industry Licensing Board, PSI contractor trade examinations bulletin (February 7, 2024).
• Oregon Construction Contractors Board, CCB license.
• South Carolina Contractors' Licensing Board, Licensure with the Board, PSI commercial contractor bulletin (August 27, 2026), Residential Builders Commission licensure and PSI residential builders bulletin (October 9, 2026).
• Tennessee Board for Licensing Contractors, Exam information, Classification outline and Prov candidate information bulletin (October 16, 2026, new licensees only).
• Utah Division of Professional Licensing, Contracting exam information, General contractor and Prov candidate information bulletin (October 16, 2026).
• Virginia Department of Professional and Occupational Regulation, Board for Contractors and PSI contractor examination bulletin for designated employees (June 5, 2024).
• West Virginia Contractor Licensing Board, Prov candidate information bulletin (May 7, 2026).