Virginia licenses the business, then requires a Designated Employee for Class A and B and a Qualified Individual for every classification or specialty. The class limits, the 30 hour W-2 rule, PSI exams, the six hour course and current DPOR fees.
Virginia licenses the contracting business, then asks the business to name specific people who carry the knowledge. Two of those people have their own titles: the Designated Employee, who passes the business examinations for a Class A or Class B firm, and the Qualified Individual, who carries the trade experience and credential for each classification or specialty on the license.
Both must be an owner or manager of the firm, or a genuine full-time employee of it. The Board for Contractors regulation defines a full-time employee as someone who spends at least 30 hours a week on the work of the licensed business and receives an IRS Form W-2 each year, and the application rules out a 1099 worker by name. For the statewide picture see the Virginia contractor license overview, and for every other state see how to get a contractor license in each state.
At a glance Issued by: the Virginia Board for Contractors (DPOR), to business entities only. Classes: C over $1,000 to under $30,000; B $30,000 to under $150,000; A $150,000 or more. Designated Employee: Class A and B only; a full-time W-2 employee (30 hours a week) or a member of Responsible Management. Exams at PSI: $72 for Class B's two portions, $85 for Class A's three. Processing: DPOR reports about 30 days for most applications.
Everything below was checked on September 29, 2026 against the Code of Virginia, the Board for Contractors regulations (18VAC50-22) and DPOR's current license application, form A501-27LIC-v18 dated 08/01/2026.
Virginia Licenses the Company, Not the Person
DPOR's application opens with the sentence that frames the whole process: "Contractor licenses are issued to business entities, not individuals." The license belongs to the firm. The firm then attaches qualified people to it, and those people carry the experience, pass the exams and hold the trade credentials.
So the first move is to create the entity. DPOR notes that all businesses in Virginia, including out of state businesses, must register with the State Corporation Commission, and a fictitious name needs its certificate attached to the application.
The Three License Classes and Their Dollar Limits
The class sets the size of the work a firm may take on. Code of Virginia section 54.1-1100 defines each class by the value of a single contract or project and by the total value of work in any 12 month period. The section was last amended in 2025 (Acts 2025, chapters 127 and 133), and its current text sets these limits.
| Class | Single contract or project | Total in any 12 months |
|---|---|---|
| Class C | Over $1,000, under $30,000 | Under $250,000 |
| Class B | $30,000 to under $150,000 | $250,000 to under $1 million |
| Class A | $150,000 or more | $1 million or more |
DPOR's guide says there are no monetary restrictions for Class A licenses, while Class B and Class C firms must stay under their ceilings. Exceeding your class limits is a violation that can lead to disciplinary action, so a Class B firm that signs a $200,000 job has a problem, not a windfall.
What Each Class Requires
The class also decides who you must name and what the firm must prove. The rules sit in 18VAC50-22-40 (Class C), 18VAC50-22-50 (Class B) and 18VAC50-22-60 (Class A), each last amended effective September 1, 2025.
| Requirement | Class C | Class B | Class A |
|---|---|---|---|
| Designated Employee | Not required | Required | Required |
| DE business exams (PSI) | None | General, Virginia | General, Virginia, Advanced |
| QI experience | 1 year | 3 years | 5 years |
| Net worth or equity | None | $15,000 | $45,000 |
Class A and Class B firms prove financial responsibility with a completed Financial Statement Form and supporting documents, a CPA reviewed statement or a CPA audit. In place of the net worth showing, the firm may obtain a $50,000 surety bond on the Board's own bond form, which Code sections 54.1-1106 and 54.1-1108 authorize. Class C carries no net worth requirement.
Role One: The Qualified Individual
The Qualified Individual (QI) is the trade competence. The firm names one QI for every classification or specialty on the license, though one person can cover several designations by meeting the criteria for each.
Who can serve. DPOR's guide says the QI "must be either a bona fide full-time employee (minimum 30 hours per week and not a 1099 employee) OR one of the members of Responsible Management." The QI must also be at least 18 years old.
Experience. The QI needs 1 year of experience in the classification or specialty for Class C, 3 years for Class B and 5 years for Class A. An Experience Verification Form is required for each QI seeking pre-approval for an examination.
Credential or exam. Every QI must hold an additional license or certification or pass a technical examination matched to the specialty, as listed in 18VAC50-22-61. The table groups the paths.
| Path for the QI | Designations | What the QI needs |
|---|---|---|
| Board for Contractors master license | ELE, PLB, HVA, GFC, LPG, NGF, WWP | Master license in that trade |
| License from another DPOR board | ASB, LAC, ADS, CDS | Supervisor or master installer license |
| Certification | ASC, ASL, EEC, BEC, SPR, MHC, RMC | Certification named in the rule |
| Pre-approval and exam | RBC, CBC, CIC, HIC, ROC and more | Experience form, then a PSI exam |
Notes on the table, each from 18VAC50-22-61 and DPOR's Requirements for Qualified Individuals form:
- Electrical, plumbing, HVAC, gas. The QI must hold the master tradesman license for that trade, issued by the Board for Contractors. See our guides to the Virginia electrician license, the Virginia plumbing license and the Virginia HVAC license.
- Water well/pump (WWP). The QI holds a master water well systems provider license from the Board for Contractors.
- Asbestos and lead (ASB, LAC). The QI holds an asbestos supervisor or lead abatement supervisor license from the Board for Asbestos, Lead, and Home Inspectors.
- Onsite sewage (ADS, CDS). The QI holds a master alternative or conventional onsite sewage system installer license from the waterworks and onsite sewage board.
- Fire sprinkler (SPR). NICET sprinkler level III or higher, or a Virginia professional engineer license.
- Radon (RMC). An NRPP or NRSB certificate, plus a CBC, CIC, FIC, HIC or RBC designation earned by exam.
- Exam designations. These include RBC, CBC, CIC, HIC, ROC, masonry (BRK), concrete (CEM), drywall (DRY), framing (FRM), highway/heavy (H/H), underground utility (UUC), refrigeration (REF), fire alarm (FAS) and swimming pools (POL).
The trade rule surprises multistate contractors: the company cannot carry PLB until its QI already holds Virginia's individual master plumber license. The individual credential comes first.
Role Two: The Designated Employee
The Designated Employee (DE) is the business and law competence. Code section 54.1-1100 defines the role as "the contractor's full-time employee, or a member of the contractor's responsible management, who is at least 18 years of age" and who has passed the Board's examination for the contractor.
Class A and B only. DPOR's guide says "there is no Designated Employee for Class C licenses." A Class C applicant skips this role entirely.
Who can serve. The application says the DE must be "either a full-time employee (not a 1099 employee) of the business or a member of Responsible Management." The regulation's definition of full-time employee adds the two tests that matter: at least 30 hours a week carrying out the work of the licensed business, and an IRS Form W-2 every year.
What the DE must pass. The business examinations run through PSI. A Class B DE passes the General and Virginia portions, and a Class A DE passes the General, Virginia and Advanced portions.
What the DE must prove. When the DE is not a member of Responsible Management, the application asks for full-time employment verification: "I9, W2 or a recent paycheck stub." A consulting agreement or an invoice does not fit that list.
What DPOR's Rule Says, and Where Our Model Fits
Keep two things apart. The first is the law. The second is how our company helps a firm meet it.
DPOR's rule. Under 18VAC50-22-40, 18VAC50-22-50 and 18VAC50-22-60, the Designated Employee and every Qualified Individual must be "a full-time employee of the firm" or a member of its responsible management. Under 18VAC50-22-10, a full-time employee is one "who spends a minimum of 30 hours a week carrying out the work of the licensed contracting business and who receives an IRS Form W-2 annually." The application adds "not a 1099 employee," and DPOR's Board for Contractors page defines misclassification as when "an employer improperly counts a worker as an independent contractor who should, in fact, be an employee."
Our W-2 placement model. When a firm has no owner or employee ready for the DE or QI seat, we place a qualified professional who joins that firm as a genuine full-time W-2 employee and does the work the rule describes. It is a business service between the firm, the employee and our company; DPOR does not offer, endorse or require it, and the firm still has to meet every requirement above as written. To see how the role works across states, read what is a qualifying agent and our national guide to whether a contractor license qualifier must be an owner or an employee.
Responsible Management
Responsible Management is Virginia's term for the people who stand behind the license. The regulation lists the principals of a sole proprietorship, a general or limited partnership, a corporation, an LLC or an association. The application names the sole proprietor, the partners of a general partnership, the managing partner of a limited partnership, the officers or directors of an association, the managers or members of an LLC, or the officers of a corporation.
Directors may not be listed as Responsible Managers for a corporation. Every member signs the application, certifying they are "authorized to bind the applicant to contracts and other legal obligations," and each attaches a government issued photo ID.
For a small firm, an owner who holds the trade credential and passes the business exams can fill both roles and skip the employment verification paperwork. A firm whose owner lacks the credential cannot.
The Pre-License Course: Six Hours, Every Class
Every new contractor license needs a Board approved pre-license education course. Under 18VAC50-22-300, amended effective September 1, 2025, approved courses must be six hours in length. DPOR's approved provider list, dated 08/26/2026, describes the same six hour requirement.
- It applies to all three classes. For Class A and B, a member of Responsible Management or the Designated Employee takes it. For Class C, a member of Responsible Management must take it.
- It does not replace the exams. The application says completion "cannot be used to substitute the business exams taken by the Designated Employee or Qualified Individual."
- Providers set their own terms. The Board approves the courses, and each provider sets its own fees, schedule and format, including classroom, online and correspondence options.
You enter the course completion date and the provider name on the application and attach a copy of your certificate.
What It Costs to Get Licensed
DPOR fees are not refundable, even for a firm that turns out to be ineligible. The initial fee is the total printed on the application.
| Class | Initial fee on the application | CBC or CIC only |
|---|---|---|
| Class A | $439.50 | $414.50 |
| Class B | $419.50 | $394.50 |
| Class C | $274.50 | $249.50 |
The standard totals include the $25 Recovery Fund assessment that 18VAC50-22-100 requires with each initial application. A firm applying for Commercial Building (CBC) or Commercial Improvement (CIC) only, with no other designation, skips the Recovery Fund assessment and pays the lower total. The application marks these totals with a technology fee note, and DPOR's Board for Contractors page explains it: effective July 1, 2026, certain fees include a separate Technology Fee of $7.25 per year under 2026's House Bill 30, in place through June 30, 2030.
Exam fees are paid directly to PSI. DPOR lists $40 for one portion, $72 for two portions, $85 for three portions and $85 for a QI specialty exam.
A license expires two years from the last day of the month it was issued. The regulation sets renewal at $270 for Class A, $260 for Class B and $220 for Class C, plus a $30 Recovery Fund assessment with each renewal.
The Disclosures on the Application
The application asks about the business, the DE, each QI and Responsible Management:
- Disciplinary action by any local, state or national regulatory body, with a certified copy of the final order.
- Felony convictions anywhere in the United States, and non-marijuana misdemeanors within the last three years, with an original criminal history record dated within 90 days.
- Adverse financial history, such as past-due debts, child support arrearages, judgments, unpaid taxes, bond defaults and bankruptcies, looking back 3 years (Class C), 4 years (Class B) or 5 years (Class A).
One more question stops out of state firms: the company must comply with the local licensing requirements of every county, city and town where it works. If Responsible Management will not agree, DPOR says the application cannot be processed. Code section 54.1-1108 also asks a Class B applicant for evidence of a current local license.
The Licensing Steps in Order
- Form the entity and register it with the State Corporation Commission.
- Pick the class and designations to fit your largest contract and 12 month volume.
- List Responsible Management with photo IDs and signatures.
- Name a QI for each designation and confirm the experience and credential or exam.
- Name the Designated Employee (Class A or B) and pass the PSI business exams.
- Finish the six hour pre-license course.
- Prove financial responsibility (Class A or B): financial statement, CPA review or audit, or the $50,000 bond.
- Complete the disclosures, with employment verification for any DE or QI who is not an owner or manager.
- File with the fee. DPOR processes first in, first out, averaging about 30 days for most applications.
- Get local licenses in every locality where you work.
A complete, eligible application gets the license issued at the initial review. An application with past criminal, financial or disciplinary history is "non-routine" and can need extra review or an Informal Fact-Finding Conference. The regulation also provides a temporary license, valid until the license issues or 45 days, whichever comes first, for a $60 fee on top of the initial fee.
When Your Designated Employee or Qualified Individual Leaves
This is the exposure most owners do not plan for: when a Designated Employee leaves, Code sections 54.1-1106 and 54.1-1108 require the firm to give the Board the new Designated Employee's name within 90 days. Under 18VAC50-22-220, a change of Qualified Individual must be reported within 60 days. Each change filing costs $125 under 18VAC50-22-100.
A departure removes a capability, not just a name. If your HVA qualifier resigns, the master license behind that classification leaves too, and the replacement must independently meet every requirement.
The rule gives firms one lever: more than one person at the same firm may complete the exams needed to serve as the Designated Employee, so a second qualified person is a ready backup. See the contractor qualifier contingency plan.
Frequently Asked Questions
Can the same person be both the Designated Employee and the Qualified Individual? Nothing in 18VAC50-22-50 or 18VAC50-22-60 bars one person from filling both roles. That person must meet each role on its own terms: the trade experience and credential or exam for the QI, and the PSI business exams for the DE.
Does a Class C license need a Designated Employee? No. DPOR says there is no Designated Employee for Class C licenses. A Class C firm still needs a QI with one year of experience in each specialty, and a member of Responsible Management must complete the six hour pre-license course.
Can my Designated Employee be a consultant or a 1099 worker? No. The DE must be a member of Responsible Management or a full-time employee, which the regulation defines as at least 30 hours a week with a W-2 each year. The application excludes 1099 employees by name.
What is a Class C contractor license in Virginia? Class C covers single contracts over $1,000 and under $30,000, with 12 month totals under $250,000. It needs a QI and the course, but no Designated Employee and no net worth showing.
How long does it take to get a Class C license? DPOR reports an average of about 30 days once filed. Add the time to form the entity, take the course and finish the QI's exam or credential.
What is the difference between the Designated Employee and a qualifying agent? They are versions of the same idea. Virginia splits the job into a business role (the DE) and a trade role (the QI), while other states use one title such as qualifying agent, qualifying party or responsible managing employee. See qualifying agent vs responsible managing employee for the terms.
We already hold licenses in other states. Does that shorten this? Partly. The application accepts a Certification or Letter of Good Standing from another state board for experience review or reciprocity, and it treats the NASCLA exam as equivalent for CBC or CIC when the experience matches. Your QI still needs the Virginia master license for trade specialties, and your DE still needs the PSI business exams; see how qualifying agents help contractors expand.
Before You File
These requirements, fees and thresholds are set by the Board and the General Assembly and can change. Confirm them with DPOR at contractor@dpor.virginia.gov or (804) 367-8511 before filing or paying.
If the honest answer to "who will be our Designated Employee?" is "nobody yet," call us at 615-219-2110 or visit hire a qualifying agent. Marshall Schofield and Jeremiah Jaskulski built our process around placing a full-time W-2 employee who meets Virginia's rule as written.
See also our general contractor license Virginia guide and all state licensing guides. Virginia master tradesmen who want to serve as a qualifier can read about becoming a qualifying agent.
Sources
- Code of Virginia § 54.1-1100, Definitions (class limits, designated employee), retrieved 2026-09-29
- Code of Virginia § 54.1-1106, Class A application and $50,000 bond, retrieved 2026-09-29
- Code of Virginia § 54.1-1108, Class B application, bond and local license, retrieved 2026-09-29
- 18VAC50-22-10, General definitions (full-time employee, responsible management), retrieved 2026-09-29
- 18VAC50-22-40, Requirements for a Class C license, retrieved 2026-09-29
- 18VAC50-22-50, Requirements for a Class B license, retrieved 2026-09-29
- 18VAC50-22-60, Requirements for a Class A license, retrieved 2026-09-29
- 18VAC50-22-61, Qualifications for classifications and specialties, retrieved 2026-09-29
- 18VAC50-22-100, Fees, retrieved 2026-09-29
- 18VAC50-22-110, Renewal required, retrieved 2026-09-29
- 18VAC50-22-140, Renewal fees, retrieved 2026-09-29
- 18VAC50-22-220, Change of responsible management, designated employee, or qualified individual, retrieved 2026-09-29
- 18VAC50-22-300, Prelicense education courses, retrieved 2026-09-29
- DPOR Board for Contractors (technology fee notice, exam fees, pre-license education, misclassification), retrieved 2026-09-29
- DPOR Contractor License Instructions and Application, A501-27LIC-v18, retrieved 2026-09-29
- DPOR Change in Qualified Individual and/or Designated Employee Application, retrieved 2026-09-29
- DPOR Requirements for Qualified Individuals, A501-27EXINFO-v10, retrieved 2026-09-29
- DPOR Approved Contractor Pre-License Education Providers (08/26/2026), retrieved 2026-09-29
- PSI Virginia Contractor License (DPOR) Exam, retrieved 2026-09-29
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.