View licensing thresholds, requirements, and penalties across all 50 U.S. states and DC.
Before hiring a home service professional, make sure they meet your state’s requirements. These rules are designed to protect you. Select your state to see what’s needed to run a business legally.
License Thresholds
Generally $30,000+ for residential work; varies by trade and project type.
Requirements
Exams
Business & Law exam plus trade-specific exam
Experience
4 years experience in the trade
Insurance
General liability insurance required
Business Entity
Business registration with Alabama Secretary of State
Bond
Surety bond required based on license classification
Licensing Authority
Alabama Licensing Board for General Contractors
Penalties
Civil penalties, fines, and potential criminal charges for unlicensed work
Local Variations
Local permits still required; some municipalities have additional requirements.
License Thresholds
Commercial projects over $2,000 require licensing; residential varies by locality.
Requirements
Exams
Business & Law exam; trade exam for specific classifications
Experience
3 years verifiable experience in the trade
Insurance
Workers compensation and general liability
Business Entity
Alaska business license and entity registration
Bond
Surety bond based on license type
Licensing Authority
Alaska Department of Commerce, Community & Economic Development
Penalties
Fines, stop-work orders, and potential criminal charges
Local Variations
Remote areas may have different enforcement; check local requirements.
License Thresholds
Residential projects $1,000+; commercial projects $750+
Requirements
Exams
Business Management exam and trade exam
Experience
4 years experience within last 10 years
Insurance
General liability and workers compensation if employees
Business Entity
Arizona Corporation Commission registration
Bond
Contractor bond ranging from $5,000 to $100,000
Licensing Authority
Arizona Registrar of Contractors
Penalties
Class 1 misdemeanor, fines up to $150,000, and license suspension
Local Variations
Strict enforcement; includes advertising restrictions for unlicensed contractors.
License Thresholds
Commercial projects $50,000+ typically require a license. Residential thresholds vary by scope.
Requirements
Exams
Business & law; trade exam may apply by classification
Experience
Verified experience required per classification
Insurance
General liability typically required
Business Entity
Register entity with the state; tax IDs
Bond
Contractor bond required for certain classifications
Licensing Authority
Arkansas Contractors Licensing Board
Penalties
Civil penalties and stop-work orders for unlicensed contracting; potential fines per violation
Local Variations
Local municipalities may require additional registrations and permits.
License Thresholds
Any job of $500 or more in labor and materials requires a license.
Requirements
Exams
Business & Law (CSLB) + Trade exam
Experience
4 years journeyman/foreman/supervising experience in last 10 years
Insurance
Workers' comp if you have employees; GL encouraged
Business Entity
Entity registration with CA SOS; FEIN/Tax; fingerprinting
Bond
Contractor Bond required (amount set by CSLB)
Licensing Authority
California Contractors State License Board (CSLB)
Penalties
Misdemeanor, fines, and potential jail time; enhanced penalties for repeat offenses and advertising without a license
Local Variations
Local building departments enforce permitting; some trades need additional registrations.
License Thresholds
No statewide general contractor license. Electricians and plumbers state-licensed.
Requirements
Exams
Trades (electrical/plumbing) require state exams; GCs licensed locally
Experience
Varies by local jurisdiction and trade board
Insurance
Liability insurance often required by municipalities
Business Entity
Register entity with Colorado Secretary of State
Bond
Local jurisdictions may require surety bonds
Licensing Authority
Local building departments; State Electrical Board; State Plumbing Board
Penalties
Local penalties and stop-work orders; state penalties for unlicensed electrical/plumbing
Local Variations
Always check city/county licensing offices; Denver, Aurora, etc., issue GC licenses.
License Thresholds
Home improvement work and certain specialties require registration or licensing.
Requirements
Exams
Trade exams for electrical/plumbing/HVAC; HIC registration doesn't require an exam
Experience
Experience required for trade licenses; proof for certain registrations
Insurance
Workers' comp if applicable; GL recommended
Business Entity
Business registration with CT Secretary of the State
Bond
Home improvement contractors may require a guaranty fund payment or bond as applicable
Licensing Authority
Connecticut Department of Consumer Protection (DCP)
Penalties
Civil penalties, fines, and potential criminal charges for unlicensed activity
Local Variations
Municipal permits still required; local rules may add to state requirements.
License Thresholds
Residential projects $5,000+; commercial projects vary by type
Requirements
Exams
Business exam and trade-specific examination
Experience
3 years experience in the licensed trade
Insurance
General liability insurance required
Business Entity
Delaware Division of Corporations registration
Bond
Surety bond based on license classification
Licensing Authority
Delaware Division of Professional Regulation
Penalties
Fines, license suspension, and potential criminal charges
Local Variations
Small state with consistent statewide enforcement.
License Thresholds
Most construction work requires licensing regardless of dollar amount
Requirements
Exams
Business exam and trade examination required
Experience
4 years experience in the trade
Insurance
General liability and workers compensation
Business Entity
DC Department of Consumer and Regulatory Affairs registration
Bond
Surety bond required based on license type
Licensing Authority
DC Department of Consumer and Regulatory Affairs (DCRA)
Penalties
Substantial fines, stop-work orders, and criminal prosecution
Local Variations
Strict enforcement in federal district; includes advertising restrictions.
License Thresholds
Projects exceeding $1,000 require licensing; varies by trade
Requirements
Exams
Business & Finance exam plus trade exam
Experience
4 years experience within 10-year period
Insurance
General liability and workers compensation if employees
Business Entity
Florida Division of Corporations registration
Bond
Surety bond or qualify financially
Licensing Authority
Florida Department of Business and Professional Regulation
Penalties
Third-degree felony for contracting without a license; substantial fines
Local Variations
Hurricane-prone state with strict building codes and enforcement.
License Thresholds
Residential projects $2,500+; commercial projects $25,000+
Requirements
Exams
Business & Law exam and trade examination
Experience
2 years experience in the trade
Insurance
General liability insurance required
Business Entity
Georgia Secretary of State business registration
Bond
Surety bond based on license classification
Licensing Authority
Georgia State Licensing Board for Residential and General Contractors
Penalties
Misdemeanor charges, fines, and license suspension
Local Variations
Separate licensing for residential and general contractors.
License Thresholds
Projects over $1,000 for unlicensed work; most construction requires licensing
Requirements
Exams
Business exam and trade-specific examination
Experience
4 years experience in the trade
Insurance
General liability and workers compensation
Business Entity
Hawaii Department of Commerce registration
Bond
Surety bond required based on license type
Licensing Authority
Hawaii Department of Commerce and Consumer Affairs
Penalties
Misdemeanor charges, fines up to $10,000, and potential jail time
Local Variations
Island state with unique building requirements due to climate and seismic activity.
License Thresholds
No statewide contractor licensing; regulated locally
Requirements
Exams
Varies by municipality and trade
Experience
Local requirements vary
Insurance
Typically required by local jurisdictions
Business Entity
Idaho Secretary of State business registration
Bond
May be required by local authorities
Licensing Authority
Local building departments and trade boards
Penalties
Local penalties and enforcement actions
Local Variations
Check with specific cities and counties for licensing requirements.
License Thresholds
Roofing contractors licensed statewide; other trades regulated locally
Requirements
Exams
Roofing exam required; other trades vary locally
Experience
Varies by trade and jurisdiction
Insurance
Workers compensation and liability typically required
Business Entity
Illinois Secretary of State registration
Bond
Required for roofing contractors; varies for others
Licensing Authority
Illinois Department of Financial and Professional Regulation; Local authorities
Penalties
Fines, license suspension, and potential criminal charges
Local Variations
Chicago has extensive licensing requirements beyond state regulations.
License Thresholds
No statewide general contractor licensing; some trades regulated
Requirements
Exams
Trade-specific exams for regulated trades
Experience
Varies by trade and local requirements
Insurance
Typically required by local jurisdictions
Business Entity
Indiana Secretary of State registration
Bond
May be required for certain trades
Licensing Authority
Local building departments and professional licensing boards
Penalties
Local penalties and trade-specific sanctions
Local Variations
Limited state regulation; emphasis on local control.
License Thresholds
Mechanical trades licensed statewide; general contracting regulated locally
Requirements
Exams
Trade exams for mechanical contractors
Experience
Varies by trade and jurisdiction
Insurance
Workers compensation and liability required
Business Entity
Iowa Secretary of State registration
Bond
Required for some mechanical trades
Licensing Authority
Iowa Department of Public Health; Local authorities
Penalties
Trade-specific penalties and local enforcement
Local Variations
Agricultural state with focus on mechanical systems licensing.
License Thresholds
No statewide contractor licensing; regulated at local level
Requirements
Exams
Varies by municipality
Experience
Local requirements vary
Insurance
Typically required by local jurisdictions
Business Entity
Kansas Secretary of State registration
Bond
May be required by local authorities
Licensing Authority
Local building departments
Penalties
Local penalties and enforcement actions
Local Variations
Heavy reliance on local regulation and building codes.
License Thresholds
No statewide general contractor licensing; electrical contractors licensed
Requirements
Exams
Electrical contractor exam required
Experience
Varies by trade
Insurance
Workers compensation required if employees
Business Entity
Kentucky Secretary of State registration
Bond
Required for electrical contractors
Licensing Authority
Kentucky Department of Housing; Local authorities
Penalties
Trade-specific penalties and local enforcement
Local Variations
Limited state oversight; electrical work strictly regulated.
License Thresholds
Commercial projects $50,000+; residential projects $7,500+
Requirements
Exams
Business & Law exam plus trade examination
Experience
4 years experience in the trade
Insurance
General liability and workers compensation
Business Entity
Louisiana Secretary of State registration
Bond
Surety bond based on license classification
Licensing Authority
Louisiana State Licensing Board for Contractors
Penalties
Fines up to $10,000, license suspension, and potential criminal charges
Local Variations
Hurricane-prone state with specialized requirements for storm-resistant construction.
License Thresholds
Construction projects over $3,000 require licensing
Requirements
Exams
Business exam and trade-specific examination
Experience
3 years experience in the trade
Insurance
Workers compensation and liability insurance
Business Entity
Maine Secretary of State registration
Bond
Surety bond required
Licensing Authority
Maine Department of Professional and Financial Regulation
Penalties
Civil penalties, fines, and license suspension
Local Variations
Cold climate requires specialized knowledge of weatherization and heating systems.
License Thresholds
Home improvement contracts $500+; other work varies by type
Requirements
Exams
Business exam and trade examination where applicable
Experience
Varies by license type
Insurance
Workers compensation and general liability
Business Entity
Maryland Department of Assessments registration
Bond
Surety bond required for home improvement contractors
Licensing Authority
Maryland Department of Labor
Penalties
Misdemeanor charges, fines, and license suspension
Local Variations
Strong consumer protection laws for home improvement work.
License Thresholds
Construction supervisor license required for projects over $1,000
Requirements
Exams
Construction supervisor exam and trade exams
Experience
3 years experience in construction supervision
Insurance
Workers compensation and general liability required
Business Entity
Massachusetts Secretary of State registration
Bond
Not typically required unless specified locally
Licensing Authority
Massachusetts Department of Public Safety
Penalties
Fines, stop-work orders, and potential criminal charges
Local Variations
Focus on supervisor licensing rather than contractor licensing.
License Thresholds
Residential builders licensed; other contractors regulated locally
Requirements
Exams
Builder license exam required
Experience
3 years experience in residential construction
Insurance
Workers compensation if employees
Business Entity
Michigan Department of Licensing registration
Bond
Not required for residential builders
Licensing Authority
Michigan Department of Licensing and Regulatory Affairs
Penalties
License suspension, fines, and potential criminal charges
Local Variations
Residential building focus with local regulation of other trades.
License Thresholds
Residential building projects $25,000+; other work regulated locally
Requirements
Exams
Building contractor exam and trade exams
Experience
2 years experience in the trade
Insurance
Workers compensation and general liability
Business Entity
Minnesota Secretary of State registration
Bond
Surety bond required for residential building contractors
Licensing Authority
Minnesota Department of Labor and Industry
Penalties
License suspension, fines, and restitution orders
Local Variations
Cold climate state with energy efficiency requirements.
License Thresholds
Commercial projects $50,000+; residential projects vary
Requirements
Exams
Business & Law exam plus trade examination
Experience
4 years experience in the trade
Insurance
General liability and workers compensation
Business Entity
Mississippi Secretary of State registration
Bond
Surety bond based on license classification
Licensing Authority
Mississippi State Board of Contractors
Penalties
Fines, license suspension, and potential criminal charges
Local Variations
Hurricane-prone coastal areas have additional requirements.
License Thresholds
No statewide contractor licensing; regulated locally
Requirements
Exams
Varies by municipality and trade
Experience
Local requirements vary
Insurance
Typically required by local jurisdictions
Business Entity
Missouri Secretary of State registration
Bond
May be required by local authorities
Licensing Authority
Local building departments
Penalties
Local penalties and enforcement actions
Local Variations
Heavy reliance on local regulation; check municipal requirements.
License Thresholds
No statewide contractor licensing; some trades regulated
Requirements
Exams
Trade-specific exams where applicable
Experience
Varies by trade
Insurance
Workers compensation if employees
Business Entity
Montana Secretary of State registration
Bond
May be required for certain trades
Licensing Authority
Professional licensing boards and local authorities
Penalties
Trade-specific and local penalties
Local Variations
Limited state regulation; emphasis on local control and trade licensing.
License Thresholds
No statewide contractor licensing; regulated locally
Requirements
Exams
Varies by municipality
Experience
Local requirements vary
Insurance
Typically required by local jurisdictions
Business Entity
Nebraska Secretary of State registration
Bond
May be required by local authorities
Licensing Authority
Local building departments
Penalties
Local penalties and enforcement actions
Local Variations
Agricultural state with limited state-level construction regulation.
License Thresholds
Projects over $1,000 require licensing
Requirements
Exams
Business & Law exam plus trade examination
Experience
4 years experience in the trade
Insurance
Workers compensation and general liability
Business Entity
Nevada Secretary of State registration
Bond
Surety bond based on license classification
Licensing Authority
Nevada State Contractors Board
Penalties
Gross misdemeanor charges, substantial fines, and license suspension
Local Variations
Desert state with strict licensing and consumer protection.
License Thresholds
No statewide contractor licensing; some trades regulated
Requirements
Exams
Trade-specific exams where applicable
Experience
Varies by trade
Insurance
Workers compensation if employees
Business Entity
New Hampshire Secretary of State registration
Bond
May be required for certain trades
Licensing Authority
Professional licensing boards and local authorities
Penalties
Trade-specific and local penalties
Local Variations
Limited state regulation; "Live Free or Die" philosophy extends to licensing.
License Thresholds
Home improvement contracts $500+; other work regulated by trade
Requirements
Exams
Business exam and trade examinations
Experience
Varies by license type and trade
Insurance
Workers compensation and general liability
Business Entity
New Jersey Division of Revenue registration
Bond
Surety bond required for home improvement contractors
Licensing Authority
New Jersey Department of Consumer Affairs
Penalties
Civil penalties, criminal charges, and license suspension
Local Variations
Strong consumer protection with mandatory registration for home improvement.
License Thresholds
Projects over $7,200 require general contractor license
Requirements
Exams
Business & Law exam plus trade examination
Experience
4 years experience in the trade
Insurance
Workers compensation and general liability
Business Entity
New Mexico Secretary of State registration
Bond
Surety bond based on license classification
Licensing Authority
New Mexico Regulation and Licensing Department
Penalties
Misdemeanor charges, fines, and license suspension
Local Variations
Desert climate with specialized requirements for energy efficiency.
License Thresholds
Home improvement contracts $200+; other trades regulated separately
Requirements
Exams
Trade examinations and business knowledge tests
Experience
Varies by trade and license type
Insurance
Workers compensation and disability insurance
Business Entity
New York Department of State registration
Bond
May be required depending on trade and locality
Licensing Authority
New York Department of State; NYC Department of Buildings
Penalties
Substantial fines, license suspension, and potential criminal charges
Local Variations
NYC has extensive additional requirements beyond state regulations.
License Thresholds
Projects over $30,000 require general contractor license
Requirements
Exams
Business & Law exam plus trade examination
Experience
2 years experience as licensed contractor or 8 years trade experience
Insurance
General liability insurance required
Business Entity
North Carolina Secretary of State registration
Bond
Surety bond not required
Licensing Authority
North Carolina Licensing Board for General Contractors
Penalties
Class 2 misdemeanor, fines, and license suspension
Local Variations
Coastal state with hurricane preparation requirements.
License Thresholds
No statewide contractor licensing; some trades regulated
Requirements
Exams
Trade-specific exams where applicable
Experience
Varies by trade
Insurance
Workers compensation if employees
Business Entity
North Dakota Secretary of State registration
Bond
May be required for certain trades
Licensing Authority
Professional licensing boards and local authorities
Penalties
Trade-specific and local penalties
Local Variations
Oil boom state with local regulation emphasis.
License Thresholds
No statewide general contractor licensing; some trades regulated
Requirements
Exams
Trade-specific exams where applicable
Experience
Varies by trade and local requirements
Insurance
Workers compensation if employees
Business Entity
Ohio Secretary of State registration
Bond
May be required for certain trades
Licensing Authority
Professional licensing boards and local authorities
Penalties
Trade-specific and local penalties
Local Variations
Industrial state with focus on trade-specific licensing.
License Thresholds
Commercial projects $50,000+; residential projects $25,000+
Requirements
Exams
Business & Law exam plus trade examination
Experience
2 years experience in the trade
Insurance
Workers compensation if employees
Business Entity
Oklahoma Secretary of State registration
Bond
Surety bond required
Licensing Authority
Oklahoma Construction Industries Board
Penalties
Misdemeanor charges, fines, and license suspension
Local Variations
Tornado-prone state with wind-resistant construction requirements.
License Thresholds
Projects over $1,000 require contractor registration
Requirements
Exams
Business exam and trade examinations
Experience
Varies by license type
Insurance
Workers compensation and general liability
Business Entity
Oregon Secretary of State registration
Bond
Surety bond required based on license type
Licensing Authority
Oregon Construction Contractors Board
Penalties
Class A misdemeanor, substantial fines, and license suspension
Local Variations
Strong consumer protection with mandatory bonding and insurance.
License Thresholds
Home improvement contracts $5,000+; other work varies by locality
Requirements
Exams
Business exam for home improvement contractors
Experience
Varies by trade and license type
Insurance
Workers compensation and general liability
Business Entity
Pennsylvania Department of State registration
Bond
Surety bond required for home improvement contractors
Licensing Authority
Pennsylvania Attorney General; Local authorities
Penalties
Civil penalties, criminal charges, and license suspension
Local Variations
Focus on home improvement contractor regulation with local trade licensing.
License Thresholds
Building projects over $1,000 require registration
Requirements
Exams
Contractor registration exam
Experience
3 years experience in construction
Insurance
Workers compensation and general liability
Business Entity
Rhode Island Secretary of State registration
Bond
Surety bond required
Licensing Authority
Rhode Island Department of Business Regulation
Penalties
Fines, license suspension, and potential criminal charges
Local Variations
Small state with comprehensive contractor registration system.
License Thresholds
Projects over $5,000 require contractor licensing
Requirements
Exams
Business & Law exam plus trade examination
Experience
4 years experience in the trade
Insurance
General liability and workers compensation
Business Entity
South Carolina Secretary of State registration
Bond
Surety bond based on license classification
Licensing Authority
South Carolina Department of Labor, Licensing and Regulation
Penalties
Misdemeanor charges, fines, and license suspension
Local Variations
Coastal state with hurricane and seismic building requirements.
License Thresholds
No statewide contractor licensing; some trades regulated locally
Requirements
Exams
Varies by municipality and trade
Experience
Local requirements vary
Insurance
Workers compensation if employees
Business Entity
South Dakota Secretary of State registration
Bond
May be required by local authorities
Licensing Authority
Local building departments and trade boards
Penalties
Local penalties and enforcement actions
Local Variations
Agricultural state with limited state-level construction regulation.
License Thresholds
Projects over $25,000 require contractor licensing
Requirements
Exams
Business & Law exam plus trade examination
Experience
4 years experience in the trade
Insurance
General liability insurance required
Business Entity
Tennessee Secretary of State registration
Bond
Surety bond based on license classification
Licensing Authority
Tennessee Department of Commerce and Insurance
Penalties
Class A misdemeanor, fines, and license suspension
Local Variations
Tornado-prone state with wind-resistant construction requirements.
License Thresholds
No statewide contractor licensing; regulated at local level
Requirements
Exams
Varies by municipality and trade
Experience
Local requirements vary
Insurance
Workers compensation if employees; local requirements vary
Business Entity
Texas Secretary of State registration
Bond
May be required by local authorities
Licensing Authority
Local building departments and municipal authorities
Penalties
Local penalties and enforcement actions
Local Variations
Large state with extensive local regulation; major cities have strict requirements.
License Thresholds
Projects over $3,000 require contractor licensing
Requirements
Exams
Business & Law exam plus trade examination
Experience
4 years experience in the trade
Insurance
Workers compensation and general liability
Business Entity
Utah Division of Corporations registration
Bond
Surety bond based on license classification
Licensing Authority
Utah Division of Professional Licensing
Penalties
Class B misdemeanor, fines, and license suspension
Local Variations
Mountain state with seismic and snow load building requirements.
License Thresholds
Home improvement projects over $500 require registration
Requirements
Exams
No exam required for registration
Experience
No specific experience requirement
Insurance
General liability insurance required
Business Entity
Vermont Secretary of State registration
Bond
No bond required
Licensing Authority
Vermont Attorney General Consumer Protection
Penalties
Civil penalties and cease and desist orders
Local Variations
Simple registration system focused on consumer protection.
License Thresholds
Projects over $1,000 for Class A; varies by classification
Requirements
Exams
Business & Law exam plus trade examination
Experience
3 years experience in the trade
Insurance
General liability and workers compensation
Business Entity
Virginia State Corporation Commission registration
Bond
Surety bond based on license classification
Licensing Authority
Virginia Department of Professional and Occupational Regulation
Penalties
Class 1 misdemeanor, fines, and license suspension
Local Variations
Comprehensive licensing system with multiple contractor classifications.
License Thresholds
Projects over $1,000 require contractor registration
Requirements
Exams
Business exam and trade examinations
Experience
Varies by license type
Insurance
Workers compensation and general liability
Business Entity
Washington Secretary of State registration
Bond
Surety bond required based on license type
Licensing Authority
Washington Department of Labor and Industries
Penalties
Gross misdemeanor, substantial fines, and license suspension
Local Variations
Strong consumer protection with mandatory bonding and insurance requirements.
License Thresholds
Projects over $2,500 require contractor licensing
Requirements
Exams
Business & Law exam plus trade examination
Experience
3 years experience in the trade
Insurance
Workers compensation and general liability
Business Entity
West Virginia Secretary of State registration
Bond
Surety bond based on license classification
Licensing Authority
West Virginia Division of Labor
Penalties
Misdemeanor charges, fines, and license suspension
Local Variations
Mountain state with specialized requirements for mining-related construction.
License Thresholds
Dwelling contractor work over $1,000 requires certification
Requirements
Exams
Business exam for dwelling contractors
Experience
4 years experience in construction
Insurance
Workers compensation if employees
Business Entity
Wisconsin Department of Financial Institutions registration
Bond
No bond required for dwelling contractors
Licensing Authority
Wisconsin Department of Safety and Professional Services
Penalties
License suspension, fines, and potential criminal charges
Local Variations
Focus on dwelling contractor certification with trade-specific licensing.
License Thresholds
No statewide contractor licensing; some trades regulated
Requirements
Exams
Trade-specific exams where applicable
Experience
Varies by trade
Insurance
Workers compensation if employees
Business Entity
Wyoming Secretary of State registration
Bond
May be required for certain trades
Licensing Authority
Professional licensing boards and local authorities
Penalties
Trade-specific and local penalties
Local Variations
Limited state regulation; emphasis on local control and energy industry focus.
