- No state contractor license is needed for projects under $25,000. In the counties that require it, residential remodeling from $3,000 to $24,999 needs a home improvement license.
- Plan for a trade exam and a business and law exam.
- A CPA reviewed financial statement (audited above a $3,000,000 limit) less than 12 months old, or a contractor surety bond equal to at least 50% of the monetary limit requested.
- Renewal costs $200. BC-A and BC-A/r holders need 8 hours of continuing education with each renewal. Renewal also needs a financial statement or balance sheet, a general liability certificate and workers comp proof. There is a 12-month grace period with a $20 monthly late fee.
Do you need a state license in Tennessee?
Tennessee licenses some general contractor work at the state level and leaves the rest alone. Which side of that line a job falls on decides whether you need the state license.
No state contractor license is needed for projects under $25,000. In the counties that require it, residential remodeling from $3,000 to $24,999 needs a home improvement license.
The home improvement license applies only in Bradley, Davidson, Hamilton, Haywood, Knox, Marion, Robertson, Rutherford and Shelby counties. You also need a business tax license for each city or county where you work.
Tennessee license types for general contractor work
Tennessee splits the work into 5 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 |
|---|---|
| BC-A | Residential: one to four family homes up to three stories, plus accessory buildings |
| BC-A/r | Restricted residential, single family only, monetary limit up to $125,000. A community college course replaces the exams |
| BC-B | Commercial: public buildings, residential over four units, or buildings over three stories |
| BC-C | Industrial |
| Home Improvement | Residential remodeling from $3,000 to $24,999 in counties that require it |
Steps to get licensed in Tennessee
- Choose your classification (BC-A residential, BC-B commercial, or BC-A/r) and the monetary limit you want.
- Have your qualifying agent pass the trade exam and Business and Law exam through Prov, or finish the community college course for BC-A/r.
- Get a CPA reviewed or audited financial statement, or a surety bond of at least half your limit.
- Buy general liability insurance at the required minimum and set up workers comp or an exemption.
- Get a reference letter from a past client, employer or code official.
- Apply online through the state portal and pay the $250 fee.
Experience and other requirements
Experience. The official pages we read do not say. Check with the board (official site).
The license to apply for. Contractor license, BC-A (residential) or BC-B (commercial).
Tennessee general contractor exams
Trade exam. Yes for BC-A, BC-B and BC-C. Starting July 1, 2026 the exams are given by Prov. BC-A/r applicants take an approved community college course instead.
Business and law exam. Yes. All contractor applicants pass the open-book Tennessee Business and Law exam, except BC-A/r, which uses the community college course.
What it costs in Tennessee
The board lists 4 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 |
|---|---|
| Initial application | $250 |
| Renewal | $200 |
| Late renewal penalty | $20 per month, up to 12 months |
| Mode of operation change | $100 |
Insurance and bond
Insurance. General liability and workers comp (or a valid exemption) are required. Minimum general liability is $100,000 for a monetary limit up to $500,000, $500,000 for $500,001 to $1,500,000, and $1,000,000 above that.
Bond. A CPA reviewed financial statement (audited above a $3,000,000 limit) less than 12 months old, or a contractor surety bond equal to at least 50% of the monetary limit requested.
Renewal and licenses from other states
Renewal. Renewal costs $200. BC-A and BC-A/r holders need 8 hours of continuing education with each renewal. Renewal also needs a financial statement or balance sheet, a general liability certificate and workers comp proof. There is a 12-month grace period with a $20 monthly late fee.
Reciprocity. Tennessee waives the trade exam, not the Business and Law exam, for residential or commercial building contractors licensed in Alabama, Arkansas, Louisiana, Mississippi, North Carolina and West Virginia, and commercial building contractors licensed in South Carolina. The board also accepts NASCLA National Commercial exam scores for BC-B.
Good to know in Tennessee
- Your monetary limit is about 10 times the lower of your working capital or net worth. A $150,000 limit needs $15,000 of each.
- A qualifying agent takes the exams for the company. One who is not an owner needs a power of attorney form.
- Incomplete applications can lead to a short interview at a board meeting.
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 Tennessee Department of Commerce and Insurance, Board for Licensing Contractors and the official pages below, checked October 8, 2026. Fees and rules change, so confirm with the board before you file.