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Contractor License in Minnesota

State license

Minnesota requires a state residential contractor license from the Department of Labor and Industry (DLI) for anyone who contracts directly with a homeowner to perform work in more than one special skill (building trade) on residential property of one to four units. Commercial general contracting and single-trade subcontractors are generally exempt.

Quick facts

When a license is neededLicense required if you contract directly with a residential owner for work in more than one skill area and do more than $15,000 of residential work per calendar year. Contractors under $15,000/year can file a Certificate of Exemption.
ExperienceNo strict years-of-experience prerequisite to sit for the exam; the entity must designate a qualifying person who passes the exam. Prior experience, if claimed, must be documented within the preceding 10 years.
ExamYes. The designated qualifying person must pass the Minnesota DLI exam (administered via PSI/iMS) and receive a Q number (QB, QC, or QR).
InsuranceGeneral liability insurance of at least $100,000 per occurrence, $300,000 aggregate, and $25,000 property damage; workers' compensation if you have employees. DLI must be listed as certificate holder.
FeesInitial/renewal license fee $180 plus a $5 assessment, plus a Contractor Recovery Fund contribution that varies by gross annual receipts ($320, $420, or $520). Exam fee approximately $85. Late renewal adds a $90 fee.
RenewalLicenses and Q registrations renew every 2 years. The qualifying person must complete 14 hours of DLI-approved continuing education (including Energy Code and business-management content) each cycle.
ReciprocityNone. Minnesota has no reciprocity agreements; all applicants must pass the Minnesota exam.
Main agencyMinnesota Department of Labor and Industry
Official sitehttps://www.dli.mn.gov/business/residential-contractors/residential-contractor-licensing
Requirements, thresholds, and fees change, and local rules can be stricter than the state. Always confirm directly with the board and your local building department before you bid or pull a permit. This page is a starting point, not legal advice.
Apply / official Minnesota board →

License classifications

How to get licensed in Minnesota

  1. Confirm you are required to be licensed (direct-to-homeowner work in more than one skill, over $15,000/year).
  2. Designate a qualifying person and register them for the exam through the DLI iMS portal.
  3. Pass the Minnesota residential contractor exam to obtain a Q number.
  4. Submit the license application through iMS with proof of general liability insurance and, if applicable, workers' comp.
  5. Pay the $180 license fee plus the Contractor Recovery Fund contribution.
  6. Renew every 2 years and complete 14 hours of continuing education per cycle.

Frequently asked questions

When exactly do I need a Minnesota residential contractor license?

When you contract directly with a homeowner (1-4 unit residential) to provide work in more than one special skill and your residential work exceeds $15,000 in a calendar year.

What is the Contractor Recovery Fund?

It replaces a bonding requirement. Licensees pay a tiered fee into the fund based on gross annual receipts, and it can compensate homeowners harmed by a licensed contractor.

Do I need a bond?

No separate state surety bond is required for the license; the Contractor Recovery Fund contribution takes its place. You do need qualifying general liability insurance.

Does Minnesota accept licenses from other states?

No. Minnesota has no reciprocity, so every applicant must pass the Minnesota DLI exam regardless of credentials elsewhere.

What if I do less than $15,000 of work a year?

You may qualify for a Certificate of Exemption instead of a full license, but you still cannot exceed the threshold without becoming licensed.

Sources

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Guide compiled from official Minnesota licensing-board sources. Verify current details with the board before acting; licensing rules change.