- Small jobs fall under Arizona's handyman exemption. Generally a license is needed if labor and materials exceed $1,000 or the job needs a permit.
- The qualifying party needs at least four years of practical or management experience, at least two within the last ten years, and must meet the class requirements.
- Plan for a trade exam and a business and law exam.
- Residential general: $9,000 if yearly volume is under $750,000, or $15,000 at $750,000 or more. Commercial general: $5,000 up to $100,000 based on yearly volume. A dual license combines both amounts.
- Licenses run two years. The late renewal fee is $50.
Do you need a state license in Arizona?
Arizona licenses general contractor work at the state level through the Arizona Registrar of Contractors. Below is what the board asks for, in the order you will run into it.
Small jobs fall under Arizona's handyman exemption. Generally a license is needed if labor and materials exceed $1,000 or the job needs a permit.
Arizona license types for general contractor work
Arizona splits the work into 6 licenses. Pick the one that matches the jobs you take, since working outside its scope is the same as working without one.
| License | What it covers |
|---|---|
| B General Residential Contractor | Build and repair all or any part of a home or its appurtenances. Electrical, plumbing, air conditioning, boilers, pools, spas and wells must be subcontracted |
| B-3 General Remodeling and Repair Contractor | Remodel and repair existing homes, including carpentry. Electrical, plumbing and mechanical work must be subcontracted |
| B-1 General Commercial Contractor | Build, alter and repair commercial structures and manage the work |
| B-2 General Small Commercial Contractor | Commercial projects of $2,000,000 or less, labor and materials included |
| KB-1 Dual Building Contractor | The B-1 commercial and B residential scopes together |
| KB-2 Dual Residential and Small Commercial | The B-2 small commercial and B residential scopes together |
Steps to get licensed in Arizona
- Pick your class: B or B-3 for homes, B-1 or B-2 for commercial, or KB-1 or KB-2 for both.
- Make sure your qualifying party has four years of experience, two of them in the last ten years.
- If you use an LLC or corporation, register it with the Arizona Corporation Commission first.
- Pass the online SRE exam through Gmetrix and the trade exam through PSI, each with 70% or better.
- Submit background checks and ID for everyone on the license, plus your license bond.
- Apply and pay on the ROC online portal, then renew every two years.
Experience and other requirements
Experience. The qualifying party needs at least four years of practical or management experience, at least two within the last ten years, and must meet the class requirements.
The license to apply for. B General Residential, B-1 General Commercial, B-2 General Small Commercial, or KB-1 / KB-2 Dual.
Arizona general contractor exams
Trade exam. Yes, through PSI, online or at a testing center. The fee is $66 and you need 70% to pass. B, B-3 and CR-61 share one combined exam, and B-1, B-2, KB-1 and KB-2 share another. For B-1, B-2, KB-1 and KB-2 you may take the NASCLA Commercial General Building exam instead.
Business and law exam. Yes. The Arizona Statutes and Rules Training Course and Exam (SRE), an open book course and exam online through Gmetrix. The fee is $61.
What it costs in Arizona
The board lists 8 fees along the way. These are the state's own numbers. Insurance, any bond, exam prep and your business registration come on top.
| Fee | Amount |
|---|---|
| New general residential license (B, B-3 and others): application, license fee and recovery fund | $870 |
| New general commercial license (A, B-1, B-2): application and license fee | $780 |
| New general dual license (KA, KB-1, KB-2): application, license fee and recovery fund | $1,050 |
| Renewal, general residential | $590 |
| Renewal, general commercial | $580 |
| Renewal, general dual | $750 |
| SRE statutes and rules exam (paid to Gmetrix) | $61 |
| Trade exam (paid to PSI) | $66 |
Insurance and bond
Insurance. You must attest that you follow the state workers' compensation rules, and at renewal licensees with employees give their workers' comp policy number and insurer. Check with the board for liability insurance.
Bond. Residential general: $9,000 if yearly volume is under $750,000, or $15,000 at $750,000 or more. Commercial general: $5,000 up to $100,000 based on yearly volume. A dual license combines both amounts.
Renewal and licenses from other states
Renewal. Licenses run two years. The late renewal fee is $50.
Reciprocity. Arizona has no direct reciprocity. The registrar may waive the trade exam and experience if your qualifying party held a comparable license in another state, gained by exam, within the past 5 years. The SRE exam generally cannot be waived.
Good to know in Arizona
- Residential contractors also pay into the Residential Recovery Fund, or post a $200,000 surety or cash bond instead.
- An LLC or corporation must be registered and in good standing with the Arizona Corporation Commission before applying.
- General classes must hire licensed subcontractors for electrical, plumbing, air conditioning, boiler, pool, spa and well work.
After you are licensed
The license lets you take the work. Getting the work is the next job.
- Register the business. If you work under a name other than your own, register it where your state asks (often the Secretary of State, sometimes the county), and keep the name the same on your license, your truck and your invoices.
- Claim your Google Business Profile. It is the listing people see when they search for a contractor near them. Fill in your service area, hours and real photos of your work.
- Put up a website that shows the license. Customers look for it before they call. Koira builds a contractor website for you and keeps it current.
- See where you stand. The free Koira report checks how your business shows up in search and on maps against shops near you.
Where this comes from
Every fact on this page comes from the Arizona Registrar of Contractors and the official pages below, checked October 8, 2026. Fees and rules change, so confirm with the board before you file.