Becoming a Contractor: How Requirements Vary by State

Published on September 24, 2025 by Staff Writer

Becoming a Contractor: How Requirements Vary by State

Getting your first contractor’s license opens the door to bigger jobs, higher pay and long-term career growth. It also protects your customers and your business.

Every state sets its own rules, so the exact path can look different depending on where you plan to work. Still, the overall steps are similar across the country.

In this guide, we break the process into clear, simple steps and explain where some states do things a little differently.

Contractor Licensing Requirements: The Basics

Your license is a state authorization to perform and manage certain types of construction work. At a high level, the licensing process for most states requires:

• Proof of identity and age — Aspiring contractors generally must be at least 18 years old and show accepted documents like a government-issued photo ID, Social Security card or birth certificate.
• Proof of work authorization — In some jurisdictions, if you are not a U.S. citizen, you may have to prove that you are allowed to work in your area.
• Minimum education or documented experience in the trade — Four years of documented service working in a related industry and a high school diploma or GED is usually enough.
• Passing one or more exams — An exam accredited by the National Association of State Contractors Licensing Agencies (NASCLA) is the most common type of test.
• Meeting bond requirements and carrying insurance — Professionals must usually obtain at least $50,000 of relevant coverage for liability. Some states additionally require workers’ compensation.
• Submitting a complete application — Apply for your certificate with all necessary fees and supporting documents.

States also use different license classifications to define what work you can do. Common licenses include:

• General Building
• Residential
• Commercial
• Electrical
• Plumbing
• HVAC
• Specialty categories like Roofing or Concrete

Many locations require a general contractor license to manage full projects that involve multiple trades, while specialty authorizations limit work to one trade.

Because each state has different laws, each credential is only valid in the issuing state. However, a few states offer reciprocity, which may allow a builder from one jurisdiction to qualify more quickly for an equivalent authorization in another.

Step-by-Step: How to Get a General Contractor License

If you’re starting from scratch, the entire process can take years to complete. Here are the steps to follow to get started.

Step 1: Choose Your Classification and Confirm Eligibility

Start by picking the right classifications for the work you want to perform and check the state’s scope of work definitions to be sure the criteria match your business plan.

Many require proof of years of experience before applying, verified by employers or tax records. Some request a financial statement or minimum net worth.

For example:

• California: Class B General Building often needs four years of experience at the journeyman level or higher.
• Virginia: Classes A, B and C are based on project value and business structure.
• Georgia: Requirements and scope can differ by type of job.

Step 2: Complete Education and Contractor Exam Preparation

In most places, applicants must pass one or more exams to proceed. You’ll want to make sure you’re prepared to pass them. Contractor exam preparation covers building codes, safety, estimating, project management, contracts, lien law and business practices.

You may also be required to comply with local education requirements. An individual contracting in New York City, for instance, must finish Local Law 196 Site Safety Training approved by the Department of Buildings on top of the listed state-level curriculum.

Step 3: Register for Exams and Plan Your Timeline

Sometimes, two exams are required: a business/law exam and a trade or classification exam. The state wants to make sure you can both do the work and follow the law while doing it.

When you ask, “How long does it take to become a contractor?” a common range is four to 12 weeks if you have already completed the required experience and study.

Keep in mind, though, that background checks and agency review times can add to the timeline, especially if there’s a backlog of applications in your area. Requirements and scheduling examples include:

• Oregon – Pre-license training and a test are required for most residential jobs.
• North Carolina – Local licensing boards have different exam windows and financial limits by tier.
• Michigan – Residential builders and maintenance/alteration builders must complete pre-license education before testing.
• Arizona – Arizona requires business and trade exams for several different classifications.

Before you take the test, learn Tips and Tricks to Pass Your Exam.

Step 4: Assemble Documents and Complete the Application Process

Once you’ve passed the testing, you’ll need to formally submit the application. Take your time filling out the application and make sure it’s complete. Incomplete applications are the number one cause of delays.

Step 5: Meet Bond Requirements and Insurance Standards

A surety bond is a financial promise that you will follow the law and your contract. Bond amounts vary by state and classification. Check your specific requirements as they can vary depending on location and job.

Step 6: Submit, Track and Respond Quickly

Some locations allow online submissions, which can speed up the process. Others still rely on paper copies — you may even have to pay your fee by mail. Regardless, keep copies of everything so you can respond quickly if the board asks for more information.

Step 7: Approval, Number Issuance and First Compliance Steps

Once approved, you will receive a designated number for your business. Congratulations! You’re a licensed contractor! Post your number on your contracts, invoices and in ads as required.

This is also a good time to set reminders for license renewal and note any continuing education deadlines.

Keeping in Good Standing

States set renewal cycles, which usually last one or two years from the date the certificate was issued. For instance, Florida regulations require certified contractors to renew by August 31 of each even-numbered year.

Don’t miss these deadlines. Late renewals can lead to penalties or license suspension. Please renew early where possible.

Some states require ongoing education to keep current. Even where it is not required, training helps you stay sharp on codes, safety, contracts and project management. We offer online continuing education that fits your schedule.

License Reciprocity and Expanding to New States

Reciprocity can make it easier to qualify in another state once you hold a license elsewhere, but you must still meet the standards wherever you plan to work. Some boards will accept exam scores from cooperating jurisdictions or waive certain exams based on existing agreements. Others only shorten processing times.

For example, South Carolina recognizes qualifying licensees from states like Alabama, Tennessee, Texas and more. Meanwhile, North Carolina offers exam waivers from neighboring states like South Carolina, Louisiana and Georgia. Some states, such as Illinois, have no reciprocal agreements at all.

Why Choose Builders License Training Institute

At Builders License Training Institute, we provide high-quality contractor licensing and business development training.

Here’s what you can expect from our courses:

• High-quality, state-specific training – Our courses align with real exam content and rules.
• 100% online and self-paced – Course materials are available online from any internet-connected device. Progress is saved automatically, so you can log in, study and log out at any time without having to repeat lesson material.
• Built for busy adults – Take advantage of short lessons, practice questions and plain-language explanations.
• Full catalog – We can help you with pre-license training, contract exam preparation, business courses and continuing education.

Whether you live in California, Michigan, Arizona, Virginia, Georgia, Oregon, North Carolina or another state, you can find a course that will help you meet certification requirements.

Start Your Licensing Journey Today

Earning your first contractor’s license takes planning, study and careful paperwork. With the right steps and tools, you can move from research to approval with fewer delays. Builders License Training Institute makes the process easier with online courses that fit your schedule. Start today and move confidently toward your authorization and your next project.

Need help? Our In-house experts are here to guide you through every step of getting and staying licensed. Call us at (800) 727-7104 or email us at ctihelp@certus.com and we can help you decide which type is best for you, how to find the appropriate paperwork or what courses will meet your state's requirements.