Tennessee licenses the company and its qualifying agent passes the exams. The classifications, the $25,000 threshold, the two license cap, the 10 day and three month replacement rule, Prov exams and Board fees.
Tennessee licenses the contracting company, and the person who passes the exams for that company is its qualifying agent. The Tennessee Board for Licensing Contractors, part of the Department of Commerce and Insurance, decides who may fill that role, which classifications a company may hold, how large a job it may bid, and how long it has to replace a qualifying agent who leaves. This guide carries those rules as the Board publishes them, checked against tn.gov on September 29, 2026. For the full state process see the Tennessee contractor license requirements, and for every other state see how to get a contractor license in each state.
At a glance Who issues it: the Board for Licensing Contractors, under Tennessee Code Title 62, Chapter 6, and Rules chapter 0680-01. When you need it: before bidding or contracting on a project of $25,000 or more; masonry once the masonry portion is over $100,000. Who qualifies the company: an owner, officer or full time employee who passes the exams; a non owner needs a notarized Power of Attorney. Exams: Prov since July 1, 2026, open book, $53 per exam, 73 percent to pass. Fees: $250 application, $200 renewal every two years.
Who Issues the License and When You Need One
One board handles all of it. The Board for Licensing Contractors issues building, electrical, mechanical, plumbing, HVAC, masonry, fire sprinkler, heavy construction, highway, utility and more than a hundred specialty classifications through one application. The license is issued to the business entity, whether a sole proprietor, partnership, corporation or LLC, in the exact name on its financial statement.
The license is required before contracting, which includes bidding, offering to engage or negotiating a price, on any project of $25,000 or more. That covers a prime contractor dealing with the owner, and a subcontractor doing electrical, mechanical, plumbing, HVAC or roofing work when that portion is $25,000 or more, counting materials, equipment and labor. A masonry contractor needs it when the masonry portion is more than $100,000, counting materials and labor (TCA 62-6-102), and a construction manager or consultant when the total project is more than $25,000.
Bidding to a homeowner who acts as their own general contractor makes you the prime. The Board's application packet warns that contracting, bidding or pulling a permit without the right classification and limit violates TCA 62-6-120. The license may then be denied or held up to six months, and the company cannot be awarded the job or rebid it.
Who Can Serve as the Qualifying Agent
Rule 0680-01-.02(4) names the person who must pass the exam in the right classification, and it depends on how the company is organized:
- Sole proprietorship: the owner, or a full time employee with a written power of attorney to bind the owner.
- Partnership: a general partner, or a full time employee with a written power of attorney.
- Corporation: a major stockholder owning at least 20 percent, or a full time employee with a written power of attorney.
- LLC: a manager or member, or a full time employee with a written power of attorney.
In every case the person must have sufficient knowledge of the construction business the company is licensed to perform. The Board's Power of Attorney form adds that the agent is at least 18 and a full time employee, citing TCA 62-6-115 for the authority to bind the company. It is notarized and signed by the owner or officer.
The license does not belong to the qualifying agent. The application packet says it belongs to the owner of the entity that provides the financial statement and insurance, unless the qualifying agent is that owner. When the agent has no ownership interest, Rule 0680-01-.02(4)(g) requires an owner or officer to appear alongside the agent at any Board interview.
The Board reviews applications as they arrive, with no fixed deadline, and an assigned Board member can approve them before a meeting. The Board meets six times a year, in January, March, May, July, September and November, and holds an application for a meeting only when it needs an interview. Complaints, convictions or earlier unlicensed bidding on the Contractor's Affidavit also bring an interview.
How Many Licenses One Qualifying Agent Can Qualify
The application packet states that a qualifying agent cannot be listed on more than one license unless they hold majority ownership, and that a majority owner of one of the entities may be listed on up to two licenses. The Power of Attorney form adds one exception: a listing on a license that is inactive or retired.
For an employee qualifying agent with no ownership, the practical rule is one company. The Board's Qualifying Agent Add or Change form says a non owner already listed on another license cannot be added. It also says a qualifying agent listed on several licenses, or a new employee of less than six months, needs Board approval and may be interviewed, so a company that has just hired its agent should plan for that step.
When the Qualifying Agent Leaves: 10 Days and Three Months
Tennessee gives a company a defined window, not an instant shutdown. Rule 0680-01-.02(4)(e) requires notice to the Board within 10 days of the death, resignation, termination or incapacity of a qualifying agent. A new qualifying agent must pass the exam and be appointed within three months; if not, the license becomes inactive until one is appointed.
| Clock | What happens | Source |
|---|---|---|
| Day the agent leaves | Company may keep operating | Board application packet |
| Within 10 days | Notify the Board | Rule 0680-01-.02(4)(e) |
| Within three months | New agent passes the exam and is appointed | Rule 0680-01-.02(4)(e) |
| After three months | License inactive until an agent is named | Rule 0680-01-.02(4)(e) |
Notes on the replacement window
- No second Business and Law exam: the new agent supplies a passing trade exam score for tested classifications, or an experience list for non tested ones.
- No fee: the Add or Change filing is free; the Board asks for 30 days to enter it and sends a letter confirming the change.
The departing agent can file the Board's Notice of Qualifying Agent Removal. If that is your situation today, emergency qualifier replacement is the page to read next.
Tennessee Contractor License Classifications
Every Tennessee license carries a classification, which defines the work the company may bid and perform, and a monetary limit. The Board's Classification Outline is compiled from TCA 62-6-112 and Rules 0680-01-.12 and 0680-01-.16. These are the classifications contractors ask about most.
| Code | What it covers | Trade exam |
|---|---|---|
| BC | Residential, commercial and industrial building | Required |
| BC-A | Homes of 1 to 4 units, up to 3 stories | Required |
| BC-A/r | Single family homes, limit $125,000 | Approved course instead |
| BC-B | Commercial and public buildings | Required |
| BC-b(sm) | Small commercial, limit $1,500,000 | Required |
| BC-C | Industrial buildings and plants | Required |
| BC-1 to BC-34 | Building categories such as framing and roofing | None for up to 5 |
| LMC | Masonry portions over $100,000 | Required |
| CMC | Full mechanical: plumbing and HVAC | Required |
| CMC-A | Plumbing and gas piping | Required |
| CMC-C | HVAC, refrigeration and gas piping | Required |
| CMC-D | Sprinklers and fire protection | Required |
| CE | Full electrical | Required |
| MU | Municipal and utility construction | BC-B or BC exam for full MU |
| HC | Heavy construction | None |
| HRA | Highway, railroad and airport | None |
| S | Specialty classifications | None |
Notes on the classifications
- Building categories: BC-1 through BC-34 run from acoustical treatments to scaffolding. Up to five need no trade exam, only Business and Law and experience; six or more under one major classification require the major exam (TCA 62-6-112(d)).
- Roofing and masonry: BC-21 Roofing is required at $25,000 or more and includes gutters and vinyl siding. BC-9 Masonry covers work under $100,000; above that the LMC license is required, including for a subcontractor.
- Mechanical and electrical subs: CMC-B and CMC-E through CMC-J need no trade exam, nor do CE-C through CE-G and CE-I; CE-A, CE-B, CE-H and CE-J through CE-L do.
- Heavy construction: HC-A through HC-I cover marine, tunnel, power plant, dam, mining, oil field, refinery, storm cleanup and landfill work; the HC sub categories include HC-8 Welding.
- Medical gas piping: no trade exam, but Board certification needs at least 32 hours of training, including 8 hours of brazing.
Monetary Limit and the Financial Statement
The monetary limit is the most a company may bid on any single project, with no cap on the number of projects as long as a job is not split into phases to avoid the law. The Board calculates it as 10 times the lesser of working capital or net worth, plus the required experience. With $10,000 of working capital and $200,000 of net worth, the limit is $100,000.
An unlimited license takes $300,000 or more in both working capital and net worth. Rule 0680-01-.13 allows a 10 percent tolerance over the limit, except on a BC-A/r license, and limits on different classifications cannot be combined to bid one project. A line of credit on the Board's form can raise working capital, and a Guaranty Agreement can supplement a thin statement.
The statement comes from an independent, licensed CPA or LPA in the exact name to be licensed, follows GAAP, and is less than 12 months old at the initial application. A reviewed statement supports limits of $3,000,000 or less; an audited statement is required above that.
Since July 1, 2026 a company may instead file the Board's Contractors' Surety Bond in an amount equal to at least 50 percent of the monetary limit requested. At renewal, Rule 0680-01-.10 asks for a CPA or LPA compilation for limits above $1,500,000 and a notarized statement at or below it.
The Exams, the Vendor and the Fee
Prov has administered the Board's exams since July 1, 2026, and PSI is only finishing exams it had already scheduled, through September. Every exam is computer based and open book, and the Board typically treats a passing score as valid for two years.
Every new license needs the Tennessee Business and Law exam, 50 questions in 2.5 hours according to Prov's candidate bulletin, with NASCLA's Contractors Guide to Business, Law and Project Management, Tennessee edition, as the reference. The main building, electrical, mechanical and masonry classifications add a trade exam, such as BC-A, BC-B, CE or CMC-C. The one license that skips Business and Law is BC-A/r, which uses an approved community college or vocational course instead of both exams.
Each exam costs $53, paid to Prov at registration, and a retake costs the same. The passing standard is 73 percent, at a test center or through Prov's at home option. The same person need not take both exams, and up to two people may take each exam for one company.
Plumbing (CMC-A) and full mechanical (CMC) candidates need Board pre-approval before they test, filed on the Pre-Approval Request Form with a $50 fee.
NASCLA and Trade Exam Waivers
Tennessee does not let anyone work on another state's license, but its trade exam waiver agreements can replace the trade exam. The Board's Trade Exam Waiver document, revised June 2026, lists the participating states and the Tennessee classifications each one matches.
| State or program | Tennessee classifications waived |
|---|---|
| Alabama | BC-A, BC-B, CE, CMC-C |
| Arkansas | BC-A, BC-B |
| Louisiana | BC-A, BC-B, CE, CMC |
| Mississippi | BC-A, BC-B, CE, CMC |
| North Carolina | BC-A, BC-B, CE |
| Ohio | CE, CMC-A, CMC-C |
| South Carolina | BC-B, CE, CMC-C, CMC-A |
| West Virginia | BC, BC-A, BC-B, BC-C, CE, CMC, LMC |
| NASCLA national exams | BC-B, CE |
Notes on the waiver
- Georgia: not on the current list.
- Trade exam only: the applicant still passes Business and Law, files the full application with the financial statement or bond, insurance and references, and has the other state complete the Board's License Verification form.
- Not eligible: applicants with disciplinary action, open complaints or felony convictions, and home improvement, LLE or LLP applications.
- NASCLA: see the NASCLA exam guide, and every state's partners in contractor license reciprocity by state.
Home Improvement License by County
Below the $25,000 line, a separate Board license applies in some counties. A home improvement license is required for residential remodeling projects over $3,000 and under $25,000, only in the counties that have adopted the law: Bradley, Davidson, Hamilton, Haywood, Knox, Marion, Robertson, Rutherford and Shelby.
Home improvement under TCA 62-6-501(4)(A) covers repair, remodeling, alterations or additions to land or a residential building, including driveways, pools, porches, garages, fences, roofing and painting. The applicant files a $10,000 surety bond or equivalent, proof of general liability and workers' compensation, and remodeling experience. The initial application fee is $250.
Limited Licensed Electrician and Limited Licensed Plumber
The Limited Licensed Electrician (LLE) and Limited Licensed Plumber (LLP) are individual licenses, not company licenses. Each is required only for work in a municipality that uses the state Division of Fire Prevention for permits or inspections, and each covers work under $25,000 per project.
Each goes to an individual who passes the LLE or LLP trade exam through Prov. TCA 62-6-102(6) defines the LLE and TCA 62-6-402(5) the LLP, and general maintenance work, defined in TCA 62-6-402(3) as labor of $500 or less, is exempt from the LLP. The Board tells applicants to check first whether the local government accepts the LLE or LLP or runs its own licensing.
What the Board Charges
These are the Board's own fees, all non-refundable. Exam fees go to Prov, not the Board.
| Transaction | Fee | Paid to |
|---|---|---|
| Contractor initial application | $250 | Board |
| Contractor renewal, every two years | $200 | Board |
| Late renewal, per month up to 12 | $20 | Board |
| Mode of operation change | $100 | Board |
| Qualifying agent add or change | No fee | Board |
| CMC or CMC-A exam pre-approval | $50 | Board |
| Each exam or retake | $53 | Prov |
| Home improvement initial | $250 | Board |
| LLE initial | $50 | Board |
| LLP initial | $75 | Board |
Residential Continuing Education
Under Rule 0680-09-.02 and TCA 62-6-112(g), a company holding BC-A, BC-A/r or BC-A,b(sm) that was licensed on or after January 1, 2009 needs 8 hours of Board approved Residential Continuing Education in the two years before each renewal. The qualifying agent earns the hours for the company, and when a license has several residential agents only one needs them. Certificates go in with the renewal documents.
The Licensing Steps in Order
- Pick the classifications and limit you need from the Board's Classification Outline.
- Name your qualifying agent: an owner, officer or full time employee, with a notarized Power of Attorney when the agent lacks majority ownership.
- Register the entity with the Secretary of State and get local business tax licenses, using the same name everywhere.
- Schedule the exams with Prov: Business and Law plus any trade exam, after pre-approval for CMC or CMC-A, or file a waiver verification.
- Order a reviewed or audited financial statement from a licensed CPA, or file the Contractors' Surety Bond.
- Gather insurance and paperwork: general liability sized to the limit, workers' compensation or an exemption, a reference letter, and the notarized Contractor's Affidavit.
- File the application online through the state's CORE licensing portal with the $250 fee, and attend an interview if one is scheduled.
- Keep it current: renew every two years for $200, report a departing qualifying agent within 10 days, and log residential continuing education.
Where a Qualifying Agent Fits for Your Company
A Tennessee company that cannot put its own owner or officer through the exams, or whose qualifying agent just left, can hire a qualifying agent as a full time employee who actually supervises the work. That is the structure Rule 0680-01-.02(4) anticipates. Start with what a qualifying agent is and what a contractor license qualifier does, then see how we match a Tennessee company with a qualifying agent.
The Licensing Company is based in Nashville, so Tennessee is home ground. It was founded by Marshall Schofield, one of the nation's leading contractor exam prep instructors, who has helped thousands upon thousands of contractors get licensed, and Jeremiah Jaskulski, a licensed contractor who has lived the licensing process across multiple states. The team matches a qualifying agent to your classification, prepares the Power of Attorney and the Add or Change filing, and follows up with the Board until the classification is active.
Tennessee Licensing Guides by Trade
- Tennessee contractor license requirements, the full Board process
- General contractor license in Tennessee
- Electrician license in Tennessee
- HVAC license in Tennessee
- Plumbing license in Tennessee
Frequently Asked Questions
What are the Tennessee contractor license classifications? The families are BC building (BC, BC-A, BC-B, BC-C, BC-b(sm) and BC-1 to BC-34), LMC masonry, CMC mechanical, CE electrical, MU municipal and utility, HC heavy, HRA highway, and S specialties. The Board's Classification Outline shows which need a trade exam.
Can one qualifying agent qualify two Tennessee companies? Only a majority owner of one of them, and then on up to two licenses. An agent without ownership qualifies one company.
How long does a Tennessee company have to replace a qualifying agent? Notify the Board within 10 days, and have a new agent pass the exam and be appointed within three months, or the license becomes inactive until one is appointed. The company may keep operating during the window.
Who runs the Tennessee contractor exams now? Prov, since July 1, 2026, at $53 per exam. PSI is only finishing exams it had already scheduled, through September 2026.
Does the NASCLA exam cover the Tennessee Business and Law exam? No. NASCLA scores are accepted for the BC-B and CE trade exams only, and Business and Law is always Tennessee's own.
Does Tennessee require continuing education for residential contractors? Yes. BC-A, BC-A/r and BC-A,b(sm) licensees licensed on or after January 1, 2009 need 8 hours of Board approved residential continuing education per two year renewal.
Talk to a Tennessee Licensing Team
If your company needs a qualifying agent for a Tennessee classification, or yours just gave notice and the three month clock is running, call The Licensing Company at 615-219-2110 or start at hire a qualifying agent. We will tell you which classification and exams your work needs and how fast a qualifying agent can be in place.
Sources
- Tennessee Board for Licensing Contractors, retrieved 2026-09-29
- Board for Licensing Contractors, how to get a contractor license, retrieved 2026-09-29
- Board for Licensing Contractors, Classification Outline, retrieved 2026-09-29
- Board for Licensing Contractors, fees, retrieved 2026-09-29
- Board for Licensing Contractors, exam information, retrieved 2026-09-29
- Prov, Tennessee contractor Candidate Information Bulletin, retrieved 2026-09-29
- Board for Licensing Contractors, initial contractor application packet, retrieved 2026-09-29
- Board for Licensing Contractors, Qualifying Agent Add or Change form, retrieved 2026-09-29
- Board for Licensing Contractors, Power of Attorney form, retrieved 2026-09-29
- Board for Licensing Contractors, Notice of Qualifying Agent Removal, retrieved 2026-09-29
- Board for Licensing Contractors, Trade Exam Waiver (Reciprocity), rev. June 2026, retrieved 2026-09-29
- Board for Licensing Contractors, home improvement contractor, retrieved 2026-09-29
- Board for Licensing Contractors, Limited Licensed Electrician, retrieved 2026-09-29
- Board for Licensing Contractors, Limited Licensed Plumber, retrieved 2026-09-29
- Board for Licensing Contractors, residential continuing education providers, retrieved 2026-09-29
- Board for Licensing Contractors, forms and downloads, retrieved 2026-09-29
- Board for Licensing Contractors, laws (Tennessee Code Title 62, Chapter 6, including 62-6-102, 62-6-112, 62-6-115, 62-6-120, 62-6-402 and 62-6-501), retrieved 2026-09-29
- Tennessee Secretary of State, Rules chapter 0680-01, Licensing (November 2025), retrieved 2026-09-29
- Tennessee Secretary of State, Rules chapter 0680-09, Continuing Education, retrieved 2026-09-29
- Tennessee Secretary of State, Board for Licensing Contractors rules index, retrieved 2026-09-29
Rules, fees and the waiver list are set by the Tennessee Board for Licensing Contractors and change. Verify current details with the Board before you rely on them.
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.