2025 Tennessee General Contractor License Requirements

Are you considering becoming a licensed general contractor in the state of Tennessee? If so, it is important to know what the Tennessee General Contractor License requirements are. In this blog post, we will provide a comprehensive overview of the state of Tennessee's general contractors license requirements for the year 2025. We'll cover the application process, the educational and experience requirements, and the fees associated with obtaining a Tennessee general contractor license.

Who Needs A State of Tennessee General Contractor’s License?e

If you're wondering whether or not you need a Tennessee general contractor license, the answer depends on the size and scope of the project you plan to undertake. In Tennessee, both general contractors and subcontractors may be required to hold a contractor's license, depending on the project. 

Who Issues A General Contractor License in Tennessee?

The regulations in the state are established by the Tennessee Board for Licensing Contractors.

Different Types Of Contractors Licenses In Tennessee

When it comes to obtaining a Tennessee general contractor license, there are several types of licenses available depending on the scope and size of your projects. Let's explore the different license classifications you can obtain in Tennessee:

1. Building Combined (BC) License: This license covers all types of projects and encompasses a wide range of building categories. With a Building Combined License, you'll have the flexibility to take on various construction projects, from residential to commercial, and everything in between. It's the most comprehensive license that allows you to showcase your expertise in multiple areas.

2. Residential (BC-A) License: If you're primarily focused on building, repairing, remodeling, and improving residential properties, the Residential License is the one for you. However, it's important to note that this license is only valid for projects that are three stories or less.

3. Limited Residential (BC-A/r) License: This license is designed for contractors who specialize in single-family homes and residential projects with a budget limit of $125,000. It allows you to bid and work on smaller residential projects, making it a great option for contractors looking to focus on specific areas within the residential market.

4. Commercial (BC-B) License: If you're interested in working on commercial properties, the Commercial License is a must-have. It covers repair, construction, alteration, or demolition of commercial buildings. With this license, you can undertake projects of all sizes and categories, giving you the opportunity to diversify your portfolio.

How To Get a General Contractor License In Tennessee Step-by-Step

No matter the specific contractor license you're pursuing in Tennessee, there are essential steps to follow for success. Here's a comprehensive breakdown of the process to obtain your Tennessee general contractor license:

1. Register Your Business

Register your business with the Tennessee Secretary of State for legal recognition and operation in the state.

2. Determine Your License Classification

Specify the classification of the license you're applying for. The classification hinges on the scale and type of projects you intend to undertake.

3. Demonstrating Financial Soundness

Present a financial statement that substantiates your company's financial stability and capacity to successfully complete projects.

4. Ensuring Workers' Compensation and Insurance 

Submit evidence of valid workers' compensation insurance coverage, safeguarding against potential on-the-job injuries or accidents. Additionally, be sure to supply a certificate of insurance that meets the minimum coverage thresholds stipulated for your specific Tennessee General Contractor License classification. 

5. Pass The Exam

Every contractor is required to successfully complete the Tennessee "Business & Law" exam before being eligible to submit a license application. Additionally, specific contractors may be mandated to pass a "Trade" exam, contingent on their classification type.

 6.  Submit Your Application 

After successfully passing the exam, the next step involves submitting your application for a Tennessee Contractor's License. For online application submission, you must establish an account on CORE (Comprehensive Online Regulatory & Enforcement System). To initiate the process, you can download the Contractor's License Application Packet.

New License Transfer Rules for 2025

Starting January 10, 2025, individuals applying for a Tennessee license from another state will need to provide a Motor Vehicle Record (MVR) from their former state. This new requirement ensures additional verification of applicants' history and eligibility for licensure in Tennessee.

TN General Contractor License Requirements Cost 

For a two-year contractors license in Tennessee, there is a non-refundable fee of $250, accompanied by a $200 renewal fee. These fees must be paid using a personal or cashier's check; cash and credit cards are not accepted. The fee will be affixed to your application and sent to the following address:

Tennessee Board for Licensing Contractors

500 James Robertson Parkway

Nashville, TN 37243

Penalties for Unlicensed Contractors in Tennessee

Unlicensed contractors operating in Tennessee are also susceptible to criminal consequences. Failure to adhere to licensing mandates is classified as a Class A misdemeanor, carrying potential penalties of up to one year of imprisonment and fines reaching $2,500.

Leveraging your license on Houzz

Now that you know the Tennessee general contractor license requirements 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.