Tennessee General Contractor License: Get Licensed to Work

Do you need a general contractor license in Tennessee?

You need a general contractor license in Tennessee for projects with a value of $25,000 or more. If you’re working on a residential project with a value between $3,000 and $25,000, you’ll need a home improvement license instead.  

These licenses are given out by the Tennessee Department of Commerce & Insurance through the Board for Licensing Contractors (BLC) and allow you to perform the construction and supervision work of a general contractor.

Types of contractor licenses in Tennessee

Tennessee has different classes of contractor licenses, which they call building construction licenses. These licenses are divided by building type and contract size limit: 

* The Board for Licensing Contractors provides a complete list of all 34 building category classifications a BC contractor can work on. 

Tennessee general contractor license requirements

The license requirements you need to meet to become a contractor in Tennessee depend on the class of license you want. 

In general, an applicant needs to include evidence that they are qualified to perform work in their desired classification by listing previous experience, including the type of project, contract size, and scope of work performed. 

The BLC divides the different classes of contractor licenses based on the type of building being worked on and the maximum value of the contract:

* Completing a course from an Approved Provider can be taken in lieu of a Trade Exam for the Limited Residential license.

For a full view of the licensing and bidding requirements for contractors in Tennessee, you can check out this document from the BLC.

Some cities in Tennessee, like Knoxville, have additional requirements that you need to meet in addition to the state license, so make sure you check in with your regional authority before starting any projects. 

How to get a general contractor license in Tennessee

To get a contractor license in Tennessee, applicants need to provide all the information outlined in the application:

1. Pass the Business & Law and Trade Exams
2. Provide a financial statement prepared by a certified or licensed public accountant 
3. Include a list of relevant work experience and a letter of reference from a former client, employer, or building inspector
4. Provide proof that you have the necessary insurance coverage for your monetary limit, as well as proof of workers’ compensation insurance
5. Register your legal business entity with the Secretary of State, if necessary
6. Complete the Contractor’s Affidavit
7. Submit the application and, if necessary, attend the board review interview

You can apply online using the Department of Commerce and Insurance online portal or by mailing the physical form to the following address:

BOARD FOR LICENSING CONTRACTORS
500 James Robertson Pkwy
Nashville, TN 37243-1150

Tennessee general contractor exam

The Trade and Business and Law Exams are administered in Tennessee by the testing vendor PSI. 

Here’s what you can expect for each exam according to the PSI’s Candidate Information Bulletin for Tennessee contractors:

Does Tennessee reciprocate general contractor licenses?

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

Tennessee reciprocates some of its building license classes with the following states:

It’s important to note that the reciprocal agreement only waives the Trade exam requirement, not the Business and Law exam requirement, so you’ll still need to pass that exam to work as a GC in Tennessee.

How much does a general contractor license cost in Tennessee?

The cost of getting a contractor license in Tennessee varies depending on the type of license you want to hold. In general, you can expect to pay about $307-$364 for the examination and initial application process, depending on whether you need to take a Trade Exam. 

Here’s a list of all the fees outlined by the Board for Licensing Contractors:

Keep in mind there will also be fees associated with setting up your insurance and getting your financial information notarized by an accountant. 

Renewing your general contractor license

Contractor licenses in Tennessee are valid for two years from the date they are first issued. 

A notice that you need to renew your license is mailed by the BLC 90 days before the expiration date and includes instructions for renewing your license online. The board recommends submitting your renewal application at least 30 days before the expiration date. If your contractor license is over 12 months expired, you will need to follow the reinstatement process.

For the following residential contractor licenses, you need to complete eight hours of continuing education from an accredited provider during the two years the license is valid: 

• Residential (BC-A)
• Limited residential (BC-A/r)
• Residential small commercial (BC-A, b(sm))

How to start a contracting business in Tennessee

Once you’ve secured your Tennessee general contractor license and built up experience in the industry, you’re ready to take the next step: starting your own general contractor business.

The Tennessee Department of Commerce & Insurance provides a list of resources to help you navigate the rules and regulations around starting your own general contracting business, including: 

• Information about the state’s business tax laws
• A quick guide to starting your own business
• Workers’ compensation requirements and exemptions
• How to register with the Internal Revenue Service
• Differences between employees and independent contractors

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 Tennessee increase your earning potential?

Yes, getting a general contractor license in Tennessee gives you a massive increase in earning potential. Without a license from the BLC, you’re limited to commercial projects under $25,000 and residential projects under $3,000. Even with one of the limited contractor licenses, you stand to make much more than that per project. 

With the average Tennessee general contractor bringing in nearly $120,000, getting your license is the perfect way to get into a highly lucrative industry. You can increase your earning potential even more if you open your own contracting business.