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complianceMar 10, 202612 min read

Contractor License Requirements: A State-by-State Guide for 2026

Which states require a contractor license? What exams, insurance, and experience do you need? Complete 50-state overview.

Construction contractor reviewing blueprints on job site

Do You Need a Contractor License?

It depends on your state. 29 states require some form of state-level contractor license, while 21 states only require local licensing or registration.

States That Require a State-Level License

California, Florida, Arizona, Nevada, Oregon, Virginia, North Carolina, and many more require contractors to obtain a state-issued license before performing work. Requirements typically include:

  • Experience: 2-4 years of verifiable trade experience
  • Exam: Trade-specific and business law exams
  • Insurance: General liability ($500K-$1M minimum)
  • Bond: Surety bond ($5,000-$25,000)
  • Fees: Application and license fees ($200-$1,000)
  • Contractor with hard hat and safety vest on construction site

    States Without State-Level Licensing

    Texas, New York, Illinois, Pennsylvania, Ohio, and others do not require a state-level general contractor license. However, most major cities within these states require local registration or licensing.

    Important: Even in states without state licensing, you still need:

  • Business registration
  • Insurance (general liability at minimum)
  • Local city/county permits for each project
  • Workers' compensation (if you have employees)
  • Cost to Get Licensed

    The total startup cost for getting properly licensed and insured as a contractor ranges from $2,500 to $8,000, including:

  • License application fees: $200-$600
  • Exam fees: $100-$300
  • Study materials: $50-$200
  • General liability insurance: $500-$2,000/year
  • Surety bond: $100-$500/year
  • Workers' comp (if applicable): $1,000-$5,000/year
  • View detailed requirements for your state

    *Not sure what you need? Chat with our AI compliance assistant for a personalized checklist.*

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