A license doesn’t guarantee good work, but it tells you someone met minimum standards and gives you somewhere to turn if things go wrong.
Licensing, permit, lien and tax rules vary by state and city and change over time. This guide is general information, not legal or tax advice; check with your local building department, state licensing board or a professional for your situation.
Checklist
- Licensing rules are set by states, and sometimes counties and cities, so they vary a lot.
- Look the license up yourself on the official licensing board’s website.
- Check that the license is active, matches the business name and covers the type of work.
- Many states exempt small jobs, but the limits are low and have conditions.
In the United States, there’s no national contractor license. States set the rules, and some leave licensing to counties or cities. That means checking takes a few minutes of looking in the right place.
Where to look
- Find your state’s licensing agency. Many states have a contractor licensing board; others license only specific trades, such as electricians and plumbers. Your state’s consumer protection office can point you to the right agency.
- Search by name or license number. Use the official website, not a link the contractor sends you.
- Check local rules too. Some cities and counties license or register contractors separately.
What to check
- Status: active, not expired or suspended.
- Name: the license matches the business and the person you’re dealing with.
- Classification: it covers the type of work, such as general building, roofing or electrical.
- Bond and insurance information, where the board lists it.
- Complaints and disciplinary actions, if your board publishes them.
Tip
Ask for the license number before the first meeting, and look it up before you sign anything. A reluctant answer is useful information in itself.
Small-job exemptions
Many states let unlicensed workers do small jobs. They’re usually narrower than people think. California is a good example: since January 1, 2025, a license is required for jobs of $1,000 or more in combined labor and materials. Even below that amount, a license is required if the job needs a permit or the worker uses employees, and splitting one project into smaller invoices doesn’t count.
Why it matters
Hiring an unlicensed contractor for work that requires a license can leave you with fewer options if something goes wrong. Some states run recovery funds or bond programs that only help customers of licensed contractors, and licensing boards generally can’t discipline someone who isn’t licensed.
Licensing is one check; insurance is another. See what insurance your contractor should carry, and the full process in how to hire a contractor without regrets.
Homeowners ask
Do handymen need a license?
It depends on your state and the job. Many states exempt small jobs below a set dollar amount, but electrical, plumbing and structural work usually requires a licensed trade even when the job is small.
What if the contractor’s license is from another state?
Generally, contractors need a license where the work is done. A license from another state usually isn’t enough, unless your state has a reciprocity arrangement.
Is a business license the same as a contractor’s license?
No. A local business license or tax registration is not proof that someone is qualified or licensed to do construction work.