A contractor's license is required for projects over $25,000 in Tennessee and is issued by the Board for Licensing Contractors. The process involves passing the Tennessee Business and Law exam, and for most license types, a trade exam as well. You must also submit a financial statement, proof of insurance, and a completed application. 

When you need a license

  • Projects over $25,000: A license is required for any project, including electrical, plumbing, and mechanical work, regardless of whether you are a prime or subcontractor.

  • Smaller home improvement projects: A separate Home Improvement license is required for projects between $3,000 and $24,999 in many counties. However, a contractor's license is not required for home improvement projects under $25,000, and a contractor's license exempts you from needing a home improvement license.

  • Other specific jobs: Limited Licensed Electricians (LLEs) and Limited Licensed Plumbers (LLPs) may require a license for work less than $25,000 in certain counties.

  • Masonry: A license is required for masonry work over $100,000.

  • Roofing: A license is required for roofing work over $25,000. 

Licensing requirements

  • Experience: You must prove three years of experience for most licenses.

  • Exams:

    • All license types require passing the Tennessee Business and Law exam.

    • Most classifications require passing a trade exam as well, with the exception of Limited Residential contractors and certain other licenses.

  • Business management exam: Some licenses, like the LLE and LLP, only require the trade exam.

  • Application: You must submit a completed application along with supporting documents.

  • Financials: You must provide a financial statement prepared by a CPA.

  • Insurance: Proof of general liability and workers' compensation insurance is required.

  • References: A letter of reference from a past client or employer is also needed.

  • Fees: A non-refundable application fee of $250 is required. 

How to apply

  1. Register for and pass the required exams: You will need to pass both the Business and Law exam and the relevant trade exam for your license classification.

  2. Gather your documents: Collect your financial statement, proof of insurance, and reference letter. A Certified Accountant is necessary for Financial Statement approval. (For a detailed list-Click Here)

  3. Complete the application: Fill out the application and submit it with the $250 fee.

  4. Wait for approval: It may take 4 to 6 weeks to receive your license after your application is approved.