New Jersey General Contractor License: Get Licensed to Work

Do you need a general contractor license in New Jersey?

The answer to this question depends on whether you plan to offer financing options on the contracts you sign and whether you plan to work on residential or commercial properties. 

To work as a general contractor in New Jersey, you do need a license if you will offer financing with payment terms beyond 90 days and will work on residential or non-commercial units. You don’t need a license if you will accept credit card payments or accept only cash installment payments over a period of up to 90 days or if you will work only on commercial properties.

According to the Contractor’s Registration Act, all general contractors, licensed or not, must register with the New Jersey Division of Consumer Affairs as a “home improvement contractor.” And any general contractor who is required to obtain a license must apply with the New Jersey Department of Banking and Insurance (DOBI) to be a “home repair contractor.”

General contractors are only permitted to perform home improvement work, which is defined as any type of “remodeling, altering, renovating, repairing, restoring, modernizing, moving, demolishing, or otherwise improving or modifying” any part of a residential home or non-commercial property. 

It’s important to note that the construction of new homes in New Jersey is governed by the New Home Warranty and Builders Registration Act, and those authorized to build new homes under this Act are called “new homebuilders.” General contractors are not authorized to build new homes but may contract to work with new homebuilders in the home construction process.

Types of contractor licenses in New Jersey

The New Jersey Department of Banking and Insurance (DOBI) issues just one type of contractor license: a home repair contractor. This license is required for general contractors who offer financed home repair contracts with payment terms beyond 90 days.

The DOBI will also license home repair salespeople to secure financed home repair contracts on behalf of licensed home repair contractors.

New Jersey general contractor license requirements

There are no educational requirements to register as a home improvement contractor or get your home repair contractor license in New Jersey. 

Simply follow the application instructions and provide all the necessary documentation.

How to get a general contractor license in New Jersey

To register as a home improvement contractor with the Division of Consumer Affairs, you’ll need to:

1. Complete the application
2. Provide the name of your business and indicate the type of business you own
3. Submit a copy of your Alternate Name Form or Trade Name Certificate, if applicable
4. Show proof of general liability insurance in the amount of at least $500,000 per occurrence
5. Provide a completed crime disclosure statement (included within the application)
6. Pay the required registration fee

Submit your home improvement contractor application and required documentation to the New Jersey Division of Consumer Affairs at:

Regulated Business Section
Home Improvement Unit
124 Halsey Street, 7th Floor
P.O. Box 46016
Newark, NJ 07101

To get a home repair contractor license from the DOBI, you’ll need to:

1. Complete the application
2. Provide copies of your Certificate of Incorporation/Formation and Alternate Name Form, if applicable
3. Satisfy all property and residence documentation requests
4. Show proof of public liability and workers’ compensation insurance
5. Show proof of registration with the Division of Consumer Affairs as a home improvement contractor
6. Pay the required licensing fee

Submit your home repair contractor application and required documentation to the New Jersey Department of Banking and Insurance at:

Licensing Services Bureau
P.O. Box 473
Trenton, NJ 08625

Some municipalities may have specific requirements. Always check with the local government before offering your services in a new area.

New Jersey general contractor exam

There are no exams to pass to register as a home improvement contractor or get your home repair contractor license in New Jersey.

Does New Jersey reciprocate general contractor licenses?

Reciprocal license agreements let general contractors from other states apply directly for an equivalent license in New Jersey.

Currently, New Jersey doesn’t reciprocate general contractor licenses from other states.

How much does a general contractor license cost in New Jersey?

You can expect to pay up to $550 initially to register as a home improvement contractor and get your home repair contractor license in New Jersey. 

To register as a home improvement contractor with the Division of Consumer Affairs, the fees are:

Consult the Division of Consumer Affairs’ FAQ page for more details.

To get licensed as a home repair contractor by the DOBI, the fees are:

Consult the New Jersey DOBI’s FAQ page for more details.

Renewing your general contractor license

Home improvement contractor registrations must be renewed before March 31st of each year with the Division of Consumer Affairs. Notices are sent out every October, and you can renew online via the Department’s MyLicense web portal.

Home repair contractor licenses must be renewed with the DOBI every two years, starting from July 1 of an odd year and ending on June 30 of the subsequent odd year. You can use their online portal to process renewals. Renewal instructions will be mailed on or before April 1 of the year your license expires.

Home repair contractors are also required to file an annual report to describe the previous year’s business activity. These reports must be filed online no later than May 1 of each year. 

How to start a contracting business in New Jersey

After you have obtained your home improvement contractor registration and your home repair contractor license, you’re ready to take the next step: starting your own general contractor business. New Jersey’s State Business Portal has lists and tips for starting your business, including how to:

1. Decide on a business structure, choose a name for your business, and register your business with the state
2. Register for your Employer Identification Number (EIN)
3. Ensure you have the correct amounts of liability insurance and workers’ compensation insurance if you’ll be hiring employees
4. Stay compliant with all local rules and regulations for the cities and towns in which you’ll be working
5. Navigate the tax landscape and make sure your state taxes are paid on time
6. Get familiar with OSHA rules to make sure everyone is safe on the job
7. Navigate New Jersey’s employment laws, wage guidelines, and safety standards

There are also some practical considerations for general contractors who are thinking of starting their own company, including: 

• Pricing your services appropriately
• Securing financing and setting up an accounting system
• Finding the necessary equipment and product suppliers
• Setting up general contracting business software
• Creating a sales strategy
• Generating leads for your general contractor business 

Does a general contractor license in New Jersey increase your earning potential?

Yes, you can definitely increase your earning potential with a general contractor license in New Jersey. With the right skills and dedication, your earnings can increase significantly: The top 10% of general contractors in New Jersey earn more than $200,000 a year, according to the BLS. 

Skilled professionals are in high demand, and you stand to increase your earning potential even more by opening your own contracting business. If you need a hand navigating the business side of things, check out our contracting academy page.