How to Get a Contractor License: A Step-by-Step Guide for Every State

Getting a contractor license is one of the most important steps in building a legitimate contracting business. Whether you’re a general contractor, electrician, plumber, or HVAC technician, licensing proves to clients and regulators that you have the skills, knowledge, and financial backing to do the job right.

The specific requirements vary from state to state — and sometimes even from city to city — but the overall process follows a predictable pattern. This guide walks you through every step so you know exactly what to expect, regardless of where you plan to work.

Step 1: Determine What License You Need

Before you begin any application, you need to figure out which license applies to your trade and location. This is less straightforward than it sounds because licensing structures differ significantly across states.

State-level licensing: Most states require a state-issued license for general contractors and many specialty trades. States like California, Florida, and Arizona license dozens of trade categories at the state level.
Local licensing only: Some states — Texas and Kansas, for example — do not issue state-level contractor licenses for most trades. Instead, cities and counties set their own requirements. In these states, you may need a license from every jurisdiction where you work.
No license required: A handful of trades in certain states have no licensing requirement at all, though you’ll still need a general business license to operate legally.

Action item: Look up your specific state and trade on ContractorLicenses.org to find the exact license type, issuing authority, and requirements that apply to you.

Step 2: Meet the Experience Requirements

Nearly every state that requires a contractor license also requires you to prove a certain amount of work experience. This is where advance planning pays off.

General contractors typically need 3–5 years of verifiable experience working under a licensed contractor. States like California require 4 years of journey-level experience, while Florida requires 4 years of experience (or a combination of education and experience).
Specialty trades (electricians, plumbers, HVAC technicians) often follow an apprenticeship model, requiring anywhere from 2,000 to 10,000 hours of supervised work before you can sit for a licensing exam.
Education substitutions: Many states allow you to substitute formal education — such as a degree in construction management or completion of an accredited trade program — for a portion of the experience requirement.

Tip: Keep detailed records of every job you work on, including employer information, dates, hours, and the type of work performed. You will need this documentation when you apply.

Step 3: Complete Any Required Education or Training

Depending on your state and trade, you may need to complete specific coursework before applying for a license.

Pre-license courses: Some states require applicants to complete a state-approved pre-license education program. For example, many states require a business and law course for general contractors.
Trade school or apprenticeship: For journeyman-level licenses in the electrical, plumbing, and HVAC trades, completing a registered apprenticeship program is often mandatory.
OSHA training: While not always a licensing requirement, OSHA 10 or OSHA 30 certification is increasingly expected and may be required by the states or by project owners.

Step 4: Pass the Required Examinations

Most states require you to pass one or more exams before issuing a license. The exams test your knowledge of trade practices, building codes, safety regulations, and business law.

Types of exams

Trade exam: Tests your technical knowledge specific to your trade (electrical codes, plumbing systems, HVAC principles, etc.).
Business and law exam: Tests your understanding of contract law, lien law, workers’ compensation, OSHA regulations, and state-specific business practices.
Combined exam: Some states use a single exam that covers both trade knowledge and business/law topics.

Exam providers

The two most common exam providers are:

PSI Services: Administers contractor licensing exams for the majority of states.
Prometric: Used by several states, particularly for electrical and plumbing exams.

The NASCLA exam

If you plan to work in multiple states, the NASCLA Accredited Examination for commercial general building contractors can save you time. Currently accepted in over a dozen states, the NASCLA exam lets you take one standardized test and use it to apply for licensure in any participating state. Check our NASCLA exam guide for full details.

Exam preparation

Budget $200–$600 for exam fees depending on your state and trade.
Invest in a reputable exam prep course. Many contractors find that structured study programs significantly improve their pass rates.
Study the specific code editions referenced in your state’s exam content outline. Using outdated materials is one of the most common reasons people fail.

Step 5: Gather Your Insurance and Bonding

Before you can receive your license — and sometimes before you can even apply — you’ll need to secure the right insurance and bonding.

General liability insurance

Almost every state requires general contractors to carry general liability insurance. Minimum coverage amounts typically range from $300,000 to $1,000,000, though some states require higher limits for larger projects.

Workers’ compensation insurance

If you have employees (and in some states, even if you don’t), you’ll need workers’ compensation insurance. This protects your workers if they’re injured on the job and is a legal requirement in nearly every state.

Surety bonds

Many states require contractors to post a surety bond as part of the licensing process. The bond protects consumers if you fail to complete a project or violate state contracting laws. Bond amounts vary widely — from $5,000 in some states to $25,000 or more in others. The cost to you is typically 1–15% of the bond amount, depending on your credit score and financial history.

For a deeper dive, read our guide on contractor insurance requirements.

Step 6: Submit Your Application

With your experience documented, exams passed, and insurance secured, you’re ready to apply. Here’s what most state applications require:

Completed application form (increasingly available online)
Proof of experience (employer verification letters, W-2s, or notarized affidavits)
Exam score reports
Proof of insurance and bonding
Background check consent (most states require a criminal background check; some require fingerprinting)
Application fee (typically $50–$500)
License fee (typically $100–$600)

Processing times vary from a few weeks to several months. Some states, like Florida, have notoriously long processing times, so plan accordingly.

Step 7: Maintain Your License

Getting your license is not a one-time event. You’ll need to keep it current by meeting ongoing requirements.

Renewal: Most licenses must be renewed every 1–3 years. Renewal fees typically range from $50–$400.
Continuing education: Many states require continuing education (CE) credits for renewal. Requirements range from 4 to 16 hours per renewal cycle, covering topics like code updates, safety, and business practices.
Insurance maintenance: You must maintain active insurance and bonding throughout the life of your license. Letting your insurance lapse can result in automatic license suspension.

Common Mistakes to Avoid

Waiting too long to start the process. Between experience requirements, exam scheduling, and application processing, getting licensed can take months. Start early.
Not documenting experience properly. If you can’t verify your work history, it doesn’t count. Keep records from day one of your career.
Studying with outdated materials. Building codes are updated regularly. Make sure your study materials match the code edition your state’s exam uses.
Forgetting about local requirements. Having a state license doesn’t exempt you from city or county permits, business licenses, or registration requirements.
Letting insurance lapse. Even a single day without coverage can put your license at risk in many states.

The licensing process can feel overwhelming, especially when you’re navigating it for the first time. But the steps are straightforward: gain experience, complete required education, pass the exams, secure insurance and bonding, and submit your application.

The investment in time and money pays off. Licensed contractors earn more, win better projects, and operate with the legal protections that come with proper credentialing. Use the state-specific guides on ContractorLicenses.org to find the exact requirements for your trade and location, and start building your path to licensure today.