2025 Minnesota General Contractor License Requirements

Guide to Getting A Minnesota General Contractors License 

Choosing to work as a general contractor in Minnesota can be a lucrative career choice. However, it can also be overwhelming due to varying requirements and regulations across different states. To make things easier, we have provided a comprehensive guide on obtaining your Minnesota general contractor’s license, covering everything you need to know.

Who needs a Minnesota general contractors license?

Individuals and companies intending to engage in construction or improvements on residential or commercial buildings in Minnesota are required to carry a Minnesota general contractors license. For most trades, a license is not mandatory, except for roofing. However, if you work in two or more of the following specialties, you must obtain a license:  

• Carpentry 
• Drywall
• Exterior finishing
• Interior finishing
• Excavation
• Roofing
• Masonry

All electricians in Minnesota must be licensed, and plumbers operating in cities with populations exceeding 5,000 must also have a license. Additionally, contractors involved in asbestos or lead abatement must be registered with the Minnesota Department of Health, obtain a business license, and obtain a certificate from the state before commencing work.

New Requirements for 2025

Starting March 1, 2025, Minnesota will implement new requirements for construction contractors:

New Independent Contractor Test

A 14-factor test will replace the current 9-factor test for determining if a construction worker is an employee or independent contractor. This updated test places a greater emphasis on when services are provided, offering clearer guidelines for classification.

Written Proposals and Contracts

All contracts must include language specifying that the business entity controls how the services are provided. Additionally, contracts must be signed by both the business and the individual receiving the services to ensure mutual agreement.

Compensation

Compensation for construction work must be structured based on commission, per job, or competitive bid. This change standardizes payment practices and aligns with industry standards.

How to get an MN general contractor’s license - step by step 

If you plan to provide construction services in Minnesota, you’ll need to meet the Minnesota residential and commercial general contractor license requirements. Those requirements include the following: 

1. Register your business

In order to get a Minnesota general contractor's license, you must first register your business by disclosing your business name, address, and any partners or business owners who share more than 10 percent of your company. You can do this by visiting the Minnesota Secretary of State website.

2. Provide identification numbers and insurance

In Minnesota, businesses must obtain one or more tax-specific identification numbers, licenses, or permits to operate, which includes income tax withholding, sales and use tax (seller's permit), and unemployment insurance tax. To learn more about your tax responsibilities, get in touch with the Minnesota Department of Revenue

And if you have employees in your business, you may need to pay unemployment insurance taxes in Minnesota depending on certain criteria. To comply with this requirement, you must register your business with the Minnesota Unemployment Insurance agency.

Furthermore, businesses with employees must also have Workers' Compensation Insurance coverage, which can be obtained through a commercial carrier, self-insured basis, or the state Workers' Compensation Insurance program. To learn more about this, please refer to the Minnesota Department of Administration.

3. Take competency exams

After you register your business you must take licensing exams for contractors administered by the state of Minnesota's Department of Labor and Industry. The exam application and details on scheduling and fees can be found on their website. To become licensed, you are required to take two exams: the business and law exam, and an exam relevant to your specialty or trade. You will have four hours to answer 110 questions and need a score of at least 70 percent to pass. It is advisable to study beforehand by attending seminars or using study guides. Upon passing the exams, you will receive guidance on how to apply for your license. If you fail, you must wait 30 days to retake the exam and submit a new application along with the fee.

4. Complete the application process 

Once registered, obtained a certificate of a responsible licensed individual and passed your exams, you can begin the application process. The total cost and application fees will depend on the number of licenses you are applying for, but the initial application fee is $128. Once you pass the exams, there will be a $120 licensing fee. Payment can be made online through the Minnesota Department of Labor and Industry website, or by mailing a check or money order to the address listed below:

You will also need to provide additional paperwork, such as: 

•  Federal Employment Identification number 
•  State tax identification
•  pay associated fees. 

To become a licensed general contractor or tradesperson in Minnesota, you must register with the Department of Employment and Economic Development, register with Minnesota's Secretary of State, provide your identification numbers and insurance, pass your exams, and submit your application.

How much does licensing cost in Minnesota?

With licensing fees, board fees and exam fees, getting your Minnesota general contractors license can cost anywhere from $300- $400. You can make payments to the Minnesota Department of Labor and Industry via check or money order.

Penalties for unlicensed contractors in Minnesota

In Minnesota, if someone performs residential building or remodeling work without a license despite their company being required to have one, they may be charged with a misdemeanor. Individuals who engage in unlicensed activities, misrepresentations, or fraudulent practices may also face administrative and civil penalties.

Leveraging your license on Houzz

Now that you know how to get a MN general contractor license, it’s time to start thinking about how you can promote your license to potential clients. Everyone who’s anyone knows the value of a blue checkmark on social media. That’s what the green Verified License Badge is for businesses on Houzz Pro. With one glance, this Badge helps you:

• Let homeowners know that your business is licensed by state industry experts.
• Stand out from the competition while homeowners consider who to hire
• Add credibility to your company name, providing peace of mind to future clients

Here are the steps you can take to add a verified license to your Houzz profile. If you haven’t created a free profile on Houzz, sign up today and get ready to make a bigger impact with your business’ online presence.