Utah exempts a sole owner who builds for personal, noncommercial use, up to one residential structure per year and three per five years. Here is what Utah Code 58-55-305 says and where the exemption stops.
Utah lets a sole owner build on their own land without a contractor license, but only within a numbers limit: no more than one residential structure per year and no more than three per five years. The exemption also depends on the building being for the owner's own noncommercial, nonpublic use. This guide walks through Utah Code 58-55-305, the section of the Utah Construction Trades Licensing Act that holds the owner provisions, so you can tell where the exemption helps and where you need a licensed contractor.
At a glance Utah Code 58-55-305(1)(d)(i) exempts a sole owner of property who builds for the owner's noncommercial, nonpublic use. The limit is no more than one residential structure per year and no more than three residential structures per five years. Helpers who work under the owner's direction without compensation other than token compensation are covered by 58-55-305(1)(e). Alteration or repair work with a contracted value under $7,000 is exempt under 58-55-305(1)(h), and above $3,000 a one-time affirmation about insurance is required. A builder other than the owner must be licensed if otherwise required.
For license classifications, financial responsibility and application steps, see our Utah contractor license guide. This page covers only the owner path.
What Utah Code 58-55-305 exempts
Section 58-55-305 lists people and projects that the contractor licensing act does not reach. Several entries involve owners, and each has its own condition, so it helps to treat them as separate doors.
| Provision | Who it covers | Condition to watch |
|---|---|---|
| (1)(d)(i) | Sole owner of property engaged in building | One residential structure per year, three per five years, for noncommercial, nonpublic use |
| (1)(d)(ii) | Owner building accessory structures | Incidental to a residential structure, such as a shed, carport or detached garage |
| (1)(e) | Unpaid helpers | Working under the owner's direction with no more than token compensation |
| (1)(h) | Small jobs | Contracted value under $7,000, including labor and materials |
| (1)(j) | Owners and lessees, and their regular wage employees | Maintaining the property they own or lease |
Read the current text on the Utah Legislature website before you rely on any of these, since the section has been amended over time.
The sole owner exemption and its numbers
The central owner provision is 58-55-305(1)(d)(i). It exempts a sole owner of property engaged in building, for no more than one residential structure per year and no more than three residential structures per five years. The structure must be for the sole owner's noncommercial, nonpublic use.
Three details matter here.
- Sole owner. The wording is written for one owner, so an entity or a group of owners should confirm how the Division of Professional Licensing reads it before breaking ground.
- Noncommercial, nonpublic use. A building meant for sale, rent to the public or business use is outside this door.
- A builder other than the owner. If someone other than the owner builds the structure, that person must be licensed if a license is otherwise required.
The statute does not offer a separate exemption based on selling the property. The sale-related language in 58-55-305(1)(f) deals with a seller of personal property that attaches to real property, and only when a licensed contractor installs it. Owners who plan to build and quickly sell should not assume the exemption covers them.
Accessory structures
Section 58-55-305(1)(d)(ii) covers structures on the owner's property that are incidental to a residential structure and meant for noncommercial, nonpublic use. The statute's own examples are a shed, a carport and a detached garage. This is the door most homeowners use for a backyard building, and it does not count against the house limit described above.
Unpaid helpers and token compensation
A person working on a residential building for noncommercial, nonpublic use is exempt when they work without compensation other than token compensation and under the direction of the property owner who is engaged in building the structure. Utah defines token compensation as minimal compared with the fair market value of the services, unrelated to that value and incidental, with meals or reasonable travel costs as examples.
That is a narrow exemption. A friend who frames your garage for a weekend and gets lunch fits it. A neighbor who frames the garage for $4,000 does not, and may be performing contracting work without a license.
Small jobs under $7,000
Section 58-55-305(1)(h) exempts the alteration, repair, remodeling, addition or improvement of a building when the contracted or agreed value is less than $7,000, counting labor, materials and all changes or additions. If the total project value is greater than $3,000, the person must file a one-time affirmation with the division about public liability insurance and, if applicable, workers' compensation insurance.
The dollar line is a project-value test, not a rule about who owns the property, so it applies to contractors as well as homeowners. Splitting one job into pieces to stay under the line is risky because the value includes all changes and additions.
Owners and lessees maintaining their own property
Section 58-55-305(1)(j) exempts owners and lessees of property, and people regularly employed for wages by them or their agents to maintain the property, when working on that property. This helps a business owner whose own maintenance staff repairs the building, and a tenant who maintains leased space. It does not turn a staff member into a licensed contractor who can take outside jobs.
Penalties for getting it wrong
The penalty section of the act, 58-55-503, sets criminal and civil penalties for violations of the licensing act. Most of the violations it lists are a class A misdemeanor, and fines generally run up to $1,000 for a first offense and up to $2,000 for a second. Which penalty applies to a given act depends on the violation cited, so check the current sections before relying on any figure. Fees are set by the board or testing vendor and can change. Verify the current amount with the provider before you pay.
Beyond fines, hiring an unlicensed worker to do work that needed a license can leave you without a bonded, insured contractor behind the job.
Owner or contractor: where a qualifier fits
The owner exemption is for people building their own property. It does not help a company that sells construction work to the public. A business that contracts with customers needs a licensed qualifier, and many small trade companies reach that point when their licensed owner retires, leaves or never held the license.
A qualifying agent is a full-time W-2 employee who qualifies the company for its license. Read what a qualifying agent is, then see how to hire a qualifying agent or compare options on consultation packages. Utah companies can also read our Utah contractor license qualifier guide. Jeremiah Jaskulski and Marshall Schofield built The Licensing Company around that gap. For individual trade licenses, see the Utah electrician license guide, the Utah plumbing license guide and the Utah HVAC license guide.
Before you start
- Confirm that you are the sole owner and that the building is for your own noncommercial, nonpublic use.
- Count the residential structures you have built in the past year and the past five years.
- Keep helpers genuinely unpaid beyond token compensation, or hire licensed trades.
- If any hired work will exceed $3,000, check the one-time insurance affirmation.
- Ask your local building department what it requires for an owner permit.
Frequently Asked Questions
Can I build my own house in Utah without a contractor license? A sole owner can under 58-55-305(1)(d)(i) for no more than one residential structure per year and three per five years, if it is for noncommercial, nonpublic use.
Can I sell the house after I build it? The section contains no exemption based on selling the property, so confirm your plans with the Division of Professional Licensing before you build.
Can friends help me build? Unpaid helpers working under your direction are covered if they receive no more than token compensation, such as meals or reasonable travel costs.
Do I need a license for a $5,000 remodel? The small job exemption covers contracted value under $7,000, and above $3,000 a one-time insurance affirmation is required.
Can I hire an unlicensed contractor to build my house? The sole owner exemption says a builder other than the owner must be licensed if otherwise required.
Who can answer my specific situation? The Division of Professional Licensing or a construction attorney. This guide explains the statute and is not legal advice.
Talk to Us About Your Utah Business
If your company needs a licensed qualifier, call 615-219-2110 or start at Hire a Qualifying Agent. Browse the state by state licensing library to see where else you can grow.
Sources
- Utah Code 58-55-305, Exemptions from licensure (Justia), retrieved 2026-10-24
- Utah Code 58-55-503, Penalties (Justia), retrieved 2026-10-24
- Utah State Legislature, retrieved 2026-10-24
Disclaimer: This article is provided for educational and informational purposes only. It does not constitute legal advice, licensing guidance, or an offer of services. Licensing requirements vary by jurisdiction. For specific compliance questions, contact The Licensing Company for a confidential consultation.