Contractor License in Tennessee (2026): Requirements, Cost & Steps

Tennessee requires a state contractor license from the Tennessee Board for Licensing Contractors (TBLC) before bidding or contracting on projects of $25,000 or more (materials and labor combined). The license is issued to the qualifying individual and the business entity, and each license carries a monetary limit set from the applicant's financial statement.

License classifications

BC (Building/Commercial)
BC-A (Small Commercial)
RB (Residential)
Trade/subclassifications such as electrical, mechanical, plumbing, HVAC, masonry, and specialty (each license carries its own monetary limit)

How to get licensed in Tennessee

Determine your classification (BC, BC-A, RB, or a trade classification) and the monetary limit you need.
Obtain a CPA-reviewed or audited financial statement to establish your working capital and net worth (which sets your monetary limit).
Register for and pass the Business and Law exam and the trade exam for your classification.
Secure general liability insurance and, if you have 5 or more construction employees, workers' compensation coverage.
Complete the TBLC contractor license application for the qualifying individual and the business entity.
Submit the application with the $250 fee and supporting documents to the Board for Licensing Contractors.
After licensing, note that projects of $25,000+ require you to be licensed before bidding.

Frequently asked questions

When exactly do I need a Tennessee contractor license?

You must be licensed before bidding or contracting on any project of $25,000 or more (materials and labor combined). You even need the license to submit a bid at that level, not just to sign the contract.

How is my monetary limit determined?

Your license monetary limit is set from a CPA-reviewed or audited financial statement based on your working capital and net worth, along with your experience on similar-size projects.

What exams do I have to pass?

Most applicants must pass a Business and Law exam plus a trade/classification exam matching the license type they are seeking.

Do I need workers' compensation insurance?

General liability insurance is required for all applicants. Workers' compensation is required for construction businesses with 5 or more employees in Tennessee.

How often do I renew?

Tennessee contractor licenses renew every 2 years for a $250 renewal fee. There is no continuing education requirement for standard contractor classifications.

Sources

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

When a license is needed	$25,000 or more in combined materials and labor for a single project or combination of contracts. Unlicensed contracting at or above $25,000 is a Class A misdemeanor under T.C.A. 62-6-103.
Exam	Yes. Applicants (or the qualifying individual) must pass a Business and Law exam plus a trade/classification exam for the license type sought.
Bond	No standard statewide license surety bond for most classifications; instead the monetary limit is set from a CPA-reviewed or audited financial statement based on working capital and net worth. Certain classifications carry their own bond requirements.
Insurance	Proof of general liability insurance is required; workers' compensation is required for construction businesses with 5 or more employees.
Fees	Initial application/license fee $250; biennial renewal fee $250.
Renewal	Every 2 years. No continuing education is required for standard contractor classifications.
Reciprocity	TBLC offers reciprocity on the Business and Law exam with several states, waiving that portion for qualifying out-of-state licensees; the trade exam and Tennessee licensing still apply. Confirm the current reciprocal-state list with TBLC.
Main agency	Tennessee Board for Licensing Contractors
Official site	https://www.tn.gov/commerce/regboards/contractor.html

Contractor License in Tennessee

Quick facts