General contractor business license compliance requirements by state (Smart chart)

Failure to comply has major consequences, including hefty fines and stop-work orders.

View our state smart chart to understand the general contractor licensing and registration information where you operate.

You’ll learn:

• Licensing requirements at the state and/or local levels
• Licensing authority contact information
• General registration requirements
• Trade exam waivers and state reciprocity
• Enforcement of payment rights and mechanic liens
• What’s at stake if you don’t comply
• And more.

Frequently asked questions about general contractor licensing

Do I need to obtain a general contractor license?

The construction industry is highly regulated, and there are various requirements that must be met at the state and local levels. In many states, you are required to obtain a general contractor license and other necessary licenses and registrations before you are legally allowed to begin working on a project. You may also need to obtain the appropriate contracting licenses before you can submit a bid for a project.

General contractor licenses can be issued by a state licensing board, at the county level, or at the city level. Depending on your jurisdiction, you may have to fulfill contracting licensing requirements at multiple levels of government.

Keep in mind that specialty trades (such as electrical, solar, plumbing, and HVAC) will have their unique licensing requirements that will vary from state to state.

What are the penalties for not obtaining a general contractor and other required licenses?

Failure to comply with business license regulations in any given jurisdiction may result in stiff fines and penalties. In some cases, contracting without a license can result in fines of $10,000 or more and even jail time.

Business license enforcement is on the rise, and there has been increased scrutiny for industries such as construction. The news will frequently report on crackdowns by state and local governments on unlicensed contractors.

How do you get a general contractor license?

State and local governments will have varying requirements that you will need to meet before they can issue a general contractor license. These may include the following:

• Minimum age requirement of at least 18
• Work experience/education requirement
• Passing an examination
• Surety bond
• General liability and workers’ compensation insurance
• Background check

There may also be additional requirements depending on your business structure (ex. sole proprietorship, LLC,  corporation) and whether your business is located in another state. For example, a construction business located in one state may be asked to provide a Certificate of Authority proving that it is legally registered to operate in the other state.

What other licenses and registrations does a general contractor need to obtain?

In addition to meeting the necessary contractor licensing requirements, you will also need to meet the general business licensing and registration requirements for your state and local jurisdiction. These may include the following:

• Business registration with the Secretary of State and State Department of Revenue
• Obtaining a federal tax ID number
• Completing State's Unemployment Tax Act (SUTA) registration
• Registering a fictitious business name
• Obtaining a general business license
• Filing a beneficial ownership information report with FinCEN

For more information, see What licenses are needed to start a construction business and Legal requirements for starting a business: A checklist.

How to get a general contractor license in Florida?

Starting a construction business in Florida requires a thorough understanding of the state's specific contractor licensing and registration rules. In Florida, contractors can opt for either registration or certification, both of which are processed by the same department but involve distinct application procedures. Registration permits contractors to operate within a local jurisdiction, whereas certification allows for statewide business activities. Despite the differences, both paths require passing the same written examination.

How to get a general contractor license in New York City?

In New York City, general contractors are known as "home improvement contractors" and must be licensed by the NYC Department of Consumer Affairs for any work over $200. They also need a Home Improvement Contractor’s Bond of at least $20,000, in addition to general liability coverage. This bond protects both the contractor and client, and some projects may require a larger bond, raising project costs.

Related resources:

Webinar: Contractor licensing compliance deconstructed, to learn the ins and outs of contractor licensing compliance. Our business license consultant breaks down scenarios in which you’ll need a contractor license, explain how to obtain one, and provide tips to stay in compliance moving forward.

Related article: Business license pitfalls for construction companies