Do you need a license to do General Contractor work in Tennessee?

Yes. Tennessee requires a state-issued General Contractor contractor license to perform General Contractor work. Tennessee does not impose a fixed years-of-experience prerequisite documented in the sources reviewed. Instead, an applicant must designate a Qualifying Agent (QA) who either passes the required Tennessee Business & Law exam and applicable trade exam, or — for non-tested trades — 'supplies experience for non-tested trades for the designated classification on the contractor's license.' A CPA-prepared financial statement (Reviewed for monetary limits of $3,000,000 or less; Audited for limits exceeding $3,000,000) is also required and, together with experience, is used to set the license's monetary limit. For the BC-A/r Restricted Residential Limited License (projects less than $125,000), the exam requirement is waived in favor of a Limited License course through a Tennessee community college or vocational school.

How much does an General Contractor license cost in Tennessee?

Application fee: $250.00 (license issued for two (2) years). Each exam cost is $57.00 (PSI). Pre-approval request fee for the plumbing CMC-A or full mechanical CMC exam: $50.

How often do you renew an General Contractor license in Tennessee?

License is issued for two (2) years (Application fee is $250.00 and issued for two (2) years).

Does a Tennessee General Contractor license transfer to other states?

Reciprocity is granted as a trade-exam waiver only; the applicant must still obtain a Tennessee license. Trade exam waiver agreements with: Alabama (General, Electrical, Residential, HVAC), Arkansas (Commercial/Residential Building only), Louisiana (Residential, Commercial, Electrical, Mechanical), Mississippi (Commercial Building and Electrical), Ohio (Electrical, Plumbing, HVAC), South Carolina Commercial Contractors Licensing Board (Commercial only — Building, Electrical, HVAC, Plumbing), and West Virginia (Residential, Commercial, Industrial Building, Electrical, Mechanical, Masonry). Tennessee also accepts the NASCLA National Commercial exam. The waiver applies only to Contractors licensed with the Board, not to Home Improvement, LLE, or LLP programs.

How to Get a General Contractor License in Tennessee (2026 Guide)

Navigating Tennessee's contractor licensing landscape is essential for any construction project valued at $25,000 or more. The Tennessee Board for Licensing Contractors (BLC) oversees this process, emphasizing the critical role of a Qualifying Agent and robust financial requirements to ensure capable and responsible contracting throughout the state. This guide provides a step-by-step path through the requirements, classifications, exams, and application process.

Do You Need a Contractor License in Tennessee?

In Tennessee, a contractor license is required for any construction project valued at $25,000 or more, and is administered by the Tennessee Board for Licensing Contractors (BLC). This threshold applies to a wide range of activities, including building, remodeling, repair, and demolition for both residential and commercial projects. The license is required for the prime (general) contractor as well as subcontractors performing electrical, mechanical, plumbing, HVAC, roofing, and masonry work when their portion of the project is $25,000 or more.

Tennessee Contractor License Classifications and Tiers

Tennessee offers numerous license classifications tailored to specific types of construction work, each with a monetary limit based on the contractor's financial capacity.

BC-A: Residential Building
BC-A,b(sm): Residential/Small Commercial (Projects less than $750,000)
BC-B: Commercial Building
BC-C: Industrial Building
BC: Combined Residential/Commercial/Industrial
BC-B,C: Combined Commercial/Industrial
BC-A/r: Restricted Residential Limited License (projects less than $125,000)
CE: Electrical
CMC: Full Mechanical (Plumbing & HVAC)
CMC-A: Plumbing
CMC-C: HVAC
CMC-D: Fire Sprinkler
LMC: Licensed Masonry Contractor (projects $100,000 or more)
HC: Heavy Construction
HRA: Highway, Railroad & Airport
MU: Municipal Utility, Environmental
Specialties: A broad category covering trades such as landscaping, excavation, roofing, cell towers, solar panels, and audio visual systems.

The monetary limit assigned to a license dictates the maximum value of a single contract the licensee can undertake. This limit is determined primarily by the contractor's working capital and net worth, as demonstrated in their financial statement.

Key Requirements to Get a Tennessee Contractor License

Designating a Qualifying Agent (QA)

Tennessee requires all contractor license applicants to designate a Qualifying Agent (QA) who either passes the necessary Business & Law and trade exams or provides documented experience for non-tested classifications. The QA is the individual who holds the technical qualifications for the license on behalf of the company. A QA must be a full-time employee or an owner of the licensed entity.

Financial Statement and Capacity Requirements

Tennessee mandates a CPA-prepared financial statement for contractor license applications, with the type dependent on the requested monetary limit.

Reviewed Financial Statement: Required for a monetary limit of $3,000,000 or less. This involves a CPA performing analytical procedures and inquiries but is less in scope than an audit.
Audited Financial Statement: Required for a monetary limit of $3,000,001 to Unlimited. This is a comprehensive examination of financial records by a CPA.

If an applicant provides a 'cash' financial statement with few or no fixed assets, the Board may also require a Guaranty Agreement with a supplemental personal or parent company financial statement, or a Board-format Bond.

Insurance Requirements

Applicants for a Tennessee contractor license must provide proof of General Liability and, if applicable, Workers' Compensation insurance.

General Liability Insurance: A Certificate of Insurance is required. The certificate must be in the exact same name as the applicant and the financial statement, with the "Board for Licensing Contractors" listed as the certificate holder.
Workers' Compensation Insurance: Proof of coverage is required for all contractors with employees. In Tennessee, construction businesses are generally required to carry workers' compensation insurance even with just one employee. Employers may be eligible to register for an exemption under certain conditions.

Exam Requirements

Most contractor classifications require passing two exams: the Tennessee Business and Law exam and a specific trade exam. The exception is the BC-A/r Restricted Residential Limited License, for which the exam requirement is waived if the applicant completes a required course through a Tennessee community college or vocational school.

Step-by-Step: How to Apply for a Tennessee Contractor License

Determine Your License Classification and Monetary Limit: Review the classifications listed above to identify the specific license(s) your work requires. Assess your company's financial standing (working capital and net worth) to determine a realistic monetary limit to request.
Designate a Qualifying Agent (QA): Identify the individual within your company who will serve as the QA. Ensure they are prepared to pass the required exams or have the documented experience for a non-tested specialty classification.
Fulfill Financial and Insurance Requirements: Engage a CPA to prepare a "Reviewed" or "Audited" financial statement based on your desired monetary limit. Obtain certificates for General Liability and Workers' Compensation insurance.
Pass Required Exams: The designated QA must register for and pass the Tennessee Business & Law exam and any required trade exams. Exams are currently administered by PSI, but beginning July 1, 2026, Prov will begin administering the trade exams. Tennessee also accepts the NASCLA National Commercial exam, which can substitute for certain trade exams.
Compile Your Application Package: Gather all required documents, including the completed application form, CPA-prepared financial statement, insurance certificates, exam score reports, a copy of your business registration, and the application fee.
Submit Your Application: Mail or deliver your complete application package to the Tennessee Board for Licensing Contractors in Nashville. Ensure all sections are complete and signed to avoid delays.
Await Board Review and License Issuance: The Board reviews applications on a regular basis. Current application-processing and review timelines vary; confirm with the Board for the most up-to-date information.

Tennessee Contractor License Exams: What to Expect

Required Exams

Applicants must typically pass two exams:

Tennessee Business and Law Exam: This exam is required for all contractor classifications and covers topics such as licensing requirements, estimating and bidding, business organization, financial management, tax laws, labor laws, and project management.
Trade Exam: A specific technical exam is required for most classifications (e.g., BC-A Residential, CE Electrical, CMC-C HVAC).

For certain mechanical classifications (CMC Full Mechanical and CMC-A Plumbing), applicants must submit a pre-approval request to the Board before they are eligible to sit for the exam.

Exam Providers and Costs

Current Provider: PSI currently administers the exams. The fee is $57.00 per exam.
Upcoming Provider Change: Beginning July 1, 2026, Prov will begin administering the Tennessee trade exams. PSI will continue to administer currently scheduled exams through September 2026.
NASCLA Acceptance: Tennessee accepts the NASCLA Accredited Examination for Commercial General Building Contractors. Passing this exam can satisfy the trade exam portion for several commercial building classifications.

Exam Preparation Resources

The exam provider publishes Candidate Information Bulletins that detail the content outline, number of questions, time allotted, and a list of approved reference materials for each exam. These bulletins are the most critical study resource for preparing for the tests.

How Much Does a Tennessee Contractor License Cost?

The total cost to obtain a Tennessee contractor license includes a non-refundable application fee of $250.00, plus individual exam fees of $57.00 per exam.

Application Fee: $250.00 (The license is issued for two years)
Exam Fees: $57.00 per exam (Business and Law + Trade Exam)
Mechanical Pre-Approval Fee: $50.00 (for CMC and CMC-A classifications)

Other potential costs include fees for CPA services to prepare the financial statement, insurance premiums, and business registration fees.

Renewing Your Tennessee Contractor License

A Tennessee contractor license is issued for a two-year cycle and must be renewed on time to remain active. The Board sends renewal notices prior to the expiration date. The renewal process typically requires submitting an updated financial statement and proof of current insurance.

Continuing Education (CE) Requirements

Currently, Tennessee does not impose a statewide mandatory continuing education requirement for general contractor license renewal. While the Board's website may list approved education providers, this is generally for specific programs or other license types. Always verify if local jurisdictions or specific trade classifications have their own CE requirements.

Tennessee Contractor License Reciprocity

Tennessee offers reciprocity as a trade exam waiver for contractors licensed in specific states, meaning applicants can bypass certain trade exams but must still apply for and obtain a Tennessee license. An applicant must still pass the Tennessee Business and Law exam.

The waiver applies only to contractors licensed with the Board, not to Home Improvement, LLE, or LLP programs. Tennessee has trade exam waiver agreements with the following states for specific classifications:

Alabama: General, Electrical, Residential, HVAC
Arkansas: Commercial/Residential Building only
Louisiana: Residential, Commercial, Electrical, Mechanical
Mississippi: Commercial Building and Electrical
Ohio: Electrical, Plumbing, HVAC
South Carolina: Commercial only — Building, Electrical, HVAC, Plumbing
West Virginia: Residential, Commercial, Industrial Building, Electrical, Mechanical, Masonry

Additionally, passing the NASCLA National Commercial exam is accepted in lieu of the trade portion for several commercial classifications.

Frequently Asked Questions About Tennessee Contractor Licensing

What are the requirements for a contractor license in Tennessee?

To get a contractor license in Tennessee, you must designate a Qualifying Agent (QA), submit a CPA-prepared financial statement (Reviewed or Audited), provide proof of general liability and workers' compensation insurance, and the QA must pass the Tennessee Business and Law exam and any required trade exam. The application fee is $250.

When is a contractor license required in Tennessee?

A Tennessee contractor license is required for any individual or company undertaking a construction, demolition, or remodeling project valued at $25,000 or more.

What is a Qualifying Agent in Tennessee contractor licensing?

A Qualifying Agent (QA) is a designated individual (owner or full-time employee) whose technical qualifications support the license. The QA is responsible for passing the required exams or, for non-tested trades, providing documented proof of experience on behalf of the licensed company.

What exams are required for a Tennessee contractor license?

Most applicants must have their Qualifying Agent pass two exams: the Tennessee Business and Law exam and a trade-specific exam for their classification (e.g., Residential Building, Commercial Building, Electrical).

How much does a contractor license cost in Tennessee?

The primary fees are a $250.00 application fee for a two-year license and $57.00 for each required exam. Additional costs include CPA services for your financial statement and insurance premiums.

What financial requirements are there for a Tennessee contractor license?

Applicants must provide a CPA-prepared financial statement. A "Reviewed" statement is needed for monetary limits of $3,000,000 or less, and an "Audited" statement is required for limits over $3,000,000. Beginning July 1, 2026, a surety bond may be used as an alternative.

Does Tennessee accept the NASCLA exam?

Yes, Tennessee accepts the NASCLA Accredited Examination for Commercial General Building Contractors. Passing this exam can satisfy the trade exam requirement for several commercial building classifications.

Does Tennessee have license reciprocity with other states?

Yes, Tennessee has trade exam waiver agreements with Alabama, Arkansas, Louisiana, Mississippi, Ohio, South Carolina, and West Virginia for specific license classifications. This waives the trade exam only; you must still apply, pay all fees, pass the Tennessee Business and Law exam, and meet all other state requirements.