Every state sets its own experience, exam, bond, and insurance requirements for a general contractor license, but the process follows the same basic path everywhere. This guide covers what's common to every state, explains reciprocity and the NASCLA exam, and links directly to the current requirements in all 50 states.
You get a general contractor license by documenting the experience your state requires, passing its trade and business exams, and filing an application backed by the right bond and insurance. The exact numbers differ in every state, but that sequence rarely does.
Most states run this process through a single state board. A smaller group, including Texas, Ohio, and Pennsylvania, license general contracting locally instead, city by city and county by county, or not at all at the state level. See how to get a contractor license in your state for the state-by-state rules this guide summarizes.
At a glance
- Most states ask for 2 to 5 years of documented construction experience before you can test.
- A trade exam and a business and law exam are the norm; Florida pairs its CGC trade exam with a Business and Finance exam given through Pearson VUE.
- Texas, Ohio, and Pennsylvania are examples of states with no statewide general contractor license; general building is licensed locally instead.
- NASCLA's accredited exam lets a passing score travel to other NASCLA-member states as the trade exam; it does not replace the rest of each state's application.
- A local permit or registration can still apply even where no state license exists.
How to Get a General Contractor License, and Who Needs One
A general contractor license is the credential that lets a company manage and coordinate a construction project at the level the state, city, or county regulates: hire and supervise subcontractors, pull the building permits, and bid on work that requires a licensed general contractor. It covers oversight of the whole job, not one trade such as electrical or plumbing. Most residential and commercial construction above a state's dollar threshold needs one, and cities often fill the gap with their own registration where no state license exists.
A GC license typically authorizes a company to:
- Manage and coordinate an entire construction project
- Hire and supervise subcontractors
- Pull building permits in the licensing jurisdiction
- Bid on contracts that require a licensed general contractor
- Enter into construction contracts with property owners
Without it, a company is limited to working as a subcontractor under someone else's license, or it is operating outside the law in a jurisdiction that requires one.
The individual license and the company license
In most states, two different things get licensed. A person earns the credential by meeting the experience requirement and passing the exams. A business earns the right to operate by having one of those licensed people qualify it, often called the qualifier, the qualifying party, or the responsible managing individual depending on the state.
That distinction matters once a company grows. A sole proprietor's license and the business are effectively the same thing. A corporation, LLC, or partnership instead depends on its qualifier staying in place; lose that person and the company's authority to contract can lapse until a replacement is approved, on a deadline each state sets for itself.
The path every state shares
States disagree on dollar amounts, but the sequence to a general contractor license looks the same almost everywhere: build qualifying experience, pass the required exams, file the application with its bond and insurance proof, then renew on schedule. The figures below are typical ranges, not the rule in any one state; check the current number on your state's own board page before you apply.
Experience
Most states that license general contractors ask for 2 to 5 years of documented construction experience, usually in a supervisory or management role. Some let a construction-related degree or coursework substitute for part of that requirement. Michigan is the outlier: its Residential Builder and Maintenance and Alteration Contractor licenses require 60 hours of approved prelicensure education rather than a multi-year field-experience mandate, per the Michigan LARA Bureau of Construction Codes.
Exams
Nearly every licensing state runs two exams: a Business and Law exam covering contracts, liens, and employment law, and a Trade exam covering construction methods and code. Florida splits this further: Professional Testing, Inc. registers candidates and develops and scores both the Certified General Contractor trade exam and the Business and Finance exam under contract to the Florida DBPR, and candidates then sit for both as computer-based tests through the department's testing vendor, Pearson VUE. PSI is a common vendor for the business and law portion elsewhere, though each state's own board, not the vendor, sets the passing score and the retake rules.
Financial requirements and insurance
Boards look for proof that a contracting business can pay its bills: a net worth statement, a surety bond, or both. Georgia, for example, sets its net worth floor at $150,000 for a General Contractor license and $25,000 for the Limited Tier, per the State Licensing Board for Residential and General Contractors. General liability insurance is the near-universal companion requirement, with minimums commonly running from $300,000 to $1,000,000 or more depending on the state and license class. Many boards also ask for proof of workers' compensation coverage once a contractor has employees, and a CPA-reviewed financial statement if the applicant cannot show the required net worth another way.
Background check
Most boards run a criminal history check and require fingerprints as part of the application, alongside the experience and exam records.
Renewal and continuing education
Licenses typically renew every one to two years, with a renewal fee and, in many states, continuing education. South Carolina shows how specific this gets: general contractor licenses there expire October 31 of even-numbered years, while mechanical contractor licenses expire October 31 of odd-numbered years, per the South Carolina Contractor's Licensing Board.
License types that repeat from state to state
States use different names, but the same handful of license concepts recur. Knowing them makes any one state's rules easier to read.
| Concept | What it usually means |
|---|---|
| Unlimited / Commercial | No per-project dollar cap |
| Limited / Intermediate | A per-project dollar cap applies |
| Residential-only | Covers one- to few-family homes only |
| Specialty | One trade or scope, not full GC authority |
Notes:
- California splits the qualifier role into an RME (a qualifying employee) or an RMO (a qualifying owner or officer).
- Nevada's B-2 (residential) and B (commercial) are separate credentials, not tiers of one license.
- A "qualifier" is the individual whose license and exam results qualify the business; more on that below.
Reciprocity and the NASCLA exam
Reciprocity between states is never automatic. Even where a state recognizes another state's license or exam, the new state almost always still requires its own application, its own business and law exam, and current proof of bond and insurance.
The National Association of State Contractors Licensing Agencies (NASCLA) runs an accredited exam program that lets one passed trade exam travel to any NASCLA-member state that accepts it, through the organization's National Examination Database. That removes the trade exam from your to-do list in a new state. It does not remove that state's business and law exam, its financial requirements, or its application. Confirm directly with NASCLA or the destination board which exam it currently accepts before you rely on it.
How to apply
- Confirm which license, and which classification within it, your state requires for the work you plan to do.
- Document your qualifying experience, or line up the education hours a state like Michigan accepts in its place.
- Register for and pass the trade exam and the business and law exam through your state's exam vendor.
- Gather your bond, insurance certificates, and any financial statement the application calls for.
- File the application with the board, pay the fee, and clear the background check.
- Once approved, renew on the state's schedule and track continuing education if it is required.
Want the application done for you?
The Licensing Company's License Application Processing service prepares and submits the state contractor license application on your behalf. That includes an eligibility audit before anything is filed, a document checklist (we chase the pieces with you), every state form prepared and reviewed line by line, submission the way the board requires, and the board's paperwork questions answered and resubmitted until the board decides.
It is a flat $999 per state application, paid up front. State fees, exam fees, background checks, and fingerprinting are paid to the state, not to us. License Application Processing does not promise approval or a timeline, and it does not include taking the exam for you. Call 615-219-2110 to start.
When you cannot qualify yourself yet
If you do not yet have the experience or the passed exam a state requires, a qualifying agent can still get your company licensed. A qualifying agent is a licensed individual, brought on as an owner or a full-time W-2 employee, whose license and exam results qualify the company while they supervise its work. The role is a genuine job with real responsibility, not a name attached to a license application for a fee. Learn what a qualifying agent does and how to hire one if that fits your situation better than qualifying yourself.
General contractor license requirements in every state
All 50 states' current general contractor license rules are linked below. Each link goes to that state's full requirements: license types, experience, exams, fees, bond and insurance, and renewal.
- Alabama contractor license
- Alaska contractor license
- Arizona contractor license
- Arkansas contractor license
- California contractor license
- Colorado contractor license
- Connecticut contractor license
- Delaware contractor license
- Florida contractor license
- Georgia contractor license
- Hawaii contractor license
- Idaho contractor license
- Illinois contractor license
- Indiana contractor license
- Iowa contractor license
- Kansas contractor license
- Kentucky contractor license
- Louisiana contractor license
- Maine contractor license
- Maryland contractor license
- Massachusetts contractor license
- Michigan contractor license
- Minnesota contractor license
- Mississippi contractor license
- Missouri contractor license
- Montana contractor license
- Nebraska contractor license
- Nevada contractor license
- New Hampshire contractor license
- New Jersey contractor license
- New Mexico contractor license
- New York contractor license
- North Carolina contractor license
- North Dakota contractor license
- Ohio contractor license
- Oklahoma contractor license
- Oregon contractor license
- Pennsylvania contractor license
- Rhode Island contractor license
- South Carolina contractor license
- South Dakota contractor license
- Tennessee contractor license
- Texas contractor license
- Utah contractor license
- Vermont contractor license
- Virginia contractor license
- Washington contractor license
- West Virginia contractor license
- Wisconsin contractor license
- Wyoming contractor license
Expanding to a second state
A general contractor license earned in one state carries no automatic authority in the next one, even next door. Some companies requalify themselves by having their existing qualifier study for and pass the new state's exams. Others bring on a second qualifier who is already licensed there, which is faster when the opportunity has a deadline attached.
Either path works. The right one usually comes down to timeline: building your own qualification in a new state can take months once the exam, the application, and the board's review are added up, while a qualifier who already holds the license can be in place much sooner. How to hire a qualifying agent walks through what that looks like in practice.
Frequently asked questions
What is a GC license? A general contractor license, often shortened to "GC license," is the credential a state, city, or county issues so a company can manage and coordinate construction projects, pull permits, and bid on work that requires a licensed contractor.
What is a CGC license? CGC stands for Certified General Contractor, Florida's statewide, unlimited general contractor license issued under the Florida Construction Industry Licensing Board. See how to get a general contractor license in Florida for Florida's current requirements.
Does Michigan require a bond for a general contractor license? No. Michigan's Residential Builder and Maintenance and Alteration Contractor licenses, issued by the LARA Bureau of Construction Codes, require 60 hours of approved prelicensure education and a passing exam score, but no state bond or insurance to obtain the license itself. A local jurisdiction may still require one for a permit.
Does Georgia require a bond for a general contractor license? Georgia's State Licensing Board for Residential and General Contractors qualifies most applicants through a net worth requirement that varies by classification. Some residential classifications allow a surety bond as a substitute for meeting net worth; confirm the current bond figure with the board, since it is not the same across every classification.
Is there a statewide contractor license in Indiana? No. The Indiana Professional Licensing Agency licenses plumbing at the state level, but general contracting and residential specialty work are licensed, where they are licensed at all, by individual cities and counties.
Does a roofing contractor need a separate license in West Virginia? Yes. Roofing falls under the specialty contractor classification in West Virginia's Contractor Licensing Act, W. Va. Code §30-42, administered by the Contractor Licensing Board. See how to get a contractor license in West Virginia for the current thresholds and exam details.
What is the threshold for needing a license on a commercial project in Utah? Utah's handyman exemption, which lets unlicensed work proceed without a Division of Professional Licensing contractor license, currently tops out at $7,000 in combined labor and materials under Utah Code 58-55-305 as amended by 2024 HB 483. Bond and insurance amounts above that are set by license classification; see how to get a contractor license in Utah for the current figures.
Does Chicago require its own general contractor license? Yes. Chicago issues general contractor licenses in five classes, A through E, each with its own per-project value limit and insurance minimum, under Municipal Code Chapter 4-36. A statewide Illinois license does not substitute for it.
What is a Construction Industry Licensing Board? It is the kind of state board that issues and enforces general contractor licenses. Florida's version, the Construction Industry Licensing Board (CILB), issues the Certified General Contractor license discussed above; most states have an equivalent board under a different name, such as a contractors state license board, a department of professional regulation, or a division of a larger labor or commerce agency.
Does Ohio license general contractors? Not at the state level. Ohio's Construction Industry Licensing Board licenses five commercial trades (electrical, HVAC, plumbing, hydronics, and refrigeration); general building is licensed locally, and home construction and improvement work over $25,000 falls under Ohio Revised Code Chapter 4722.
Is the process different if you searched in Spanish (licencia de general contractor)? No. The steps, the board, and the exam are the same regardless of the language you searched in. Many state boards and exam vendors offer multilingual support, but the license itself is issued under the same requirements covered above.
How long does it take to get a general contractor license? It depends mostly on how long it takes you to document your experience and schedule your exam, not on the board's own review, which is often the shortest part of the process once a complete application is filed. Processing times differ by state and by how busy the board is at the time you apply; check your state's board page for its current estimate rather than relying on a single nationwide number.
Can one person hold a general contractor license in more than one state? Yes. A licensed individual can qualify, and hold a license in, as many states as they are willing to test and apply in; nothing in most states' laws caps that at one. That is also why qualifying agents work as a business strategy: a company can grow into a new state behind someone who is already licensed there, instead of waiting for its own owner to requalify from scratch.
What's the difference between a contractor license and a business license? A contractor license is issued by a construction licensing board and certifies that a person or company meets the experience, exam, and financial requirements to build. A business license, by contrast, is the local or state registration almost any company needs just to operate, regardless of trade. Most jurisdictions require both: the contractor license to do the work, and a separate business license or registration to run the company that does it.
Costs of getting licensed
These are typical ranges for the government, testing-vendor, and third-party costs of getting licensed. They are not what it costs to engage a qualifying agent or use License Application Processing.
- Application fees: $100 to $500
- Exam fees: $150 to $400 for the trade and business exams combined
- Surety bond: $200 to $2,000 a year in premium, depending on the bond amount and your credit
- Insurance: $3,000 to $12,000 a year for general liability, depending on revenue and project size
- Financial statement preparation: $500 to $2,000 if a CPA-reviewed statement is required
- License renewal: $100 to $400 every one to two years
- Continuing education: $100 to $500 a year
Fee disclaimer: board and testing-vendor fees are set by each state's licensing board and its testing vendor and change without notice; verify current amounts with the relevant board before you apply. Bond, insurance, and CPA costs are set by third-party providers and vary by applicant, credit, revenue, and state.
Common mistakes to avoid
- Bidding without a license: many states bar unlicensed contractors from even submitting a bid, not only performing the work. A low bid submitted before the license is in hand can still trigger a violation.
- Exceeding your license's monetary limit: a license's monetary limit applies per project even if you are otherwise in good standing. Taking on a job above that limit is a violation regardless of how well the work itself turns out.
- Assuming one license works nationwide: a GC license is state-specific, and often city-specific as well. Being licensed in one state says nothing about your standing in the next one.
- Not having a backup qualifier: if your qualifier leaves, many states give 60 to 90 days, and some give none, to name a replacement. A company that waits until the qualifier is already gone loses time it cannot easily recover.
- Ignoring local registration: a statewide license does not always cover a city or county's own registration requirement. Pulling a permit can still require a separate local step even where the state license is current.
Start your license, or bring in someone who already has one
Pick your state's guide above, confirm the current fees and thresholds with the board, and start building your experience file or scheduling your exam. If you would rather not file the application yourself, License Application Processing can prepare and submit it for you. If you need the company licensed now while you build toward your own credential, hire a qualifying agent instead.
Call 615-219-2110 with questions about either path.
Sources
- Texas Department of Licensing and Regulation (retrieved October 8, 2026)
- Ohio Revised Code, Chapter 4722 (retrieved October 8, 2026)
- Pennsylvania Office of Attorney General, Home Improvement Contractor Registration (retrieved October 8, 2026)
- Michigan LARA, Bureau of Construction Codes, Residential Builders prelicensure education (retrieved October 8, 2026)
- Indiana Professional Licensing Agency (retrieved October 8, 2026)
- West Virginia Code, Chapter 30, Article 42, Contractor Licensing Act (retrieved October 8, 2026)
- Utah Code 58-55-305, as amended by 2024 HB 483 (retrieved October 8, 2026)
- City of Chicago, General Contractor License, Municipal Code Chapter 4-36 (retrieved October 8, 2026)
- NASCLA Accredited Examination Program (retrieved October 8, 2026)
- Georgia Secretary of State, State Licensing Board for Residential and General Contractors (retrieved October 8, 2026)
- Florida Professional Testing, Inc., Florida DBPR exam vendor (retrieved October 8, 2026)
- South Carolina Contractor's Licensing Board (retrieved October 8, 2026)
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.