How to get a general contractor license in Tennessee

Licensing office Tennessee Board for Licensing Contractors (Department of Commerce and Insurance) · (615) 741-8307 [8][13]

The license pathway in Tennessee

1. 1

   Construction worker or carpenter apprentice

   No state license for workers. You build experience working for a contractor or in an apprenticeship; that experience is what the Board later reviews when you apply for a contractor license. [1][3]

2. 2

   Home Improvement contractor

   • $250
   • $200

   Required for residential remodeling projects from $3,000 to $24,999 in the nine counties that adopted the law. You need a $10,000 surety bond (or equivalent), liability and workers' compensation insurance, and experience with remodeling work. [2][5]

3. 3

   Limited Residential (BC-A/r)

   • Board-approved three-day limited residential course
   • $250 application
   • $200

   For single-family homes where the total cost doesn't exceed $125,000. Instead of the exams, you complete a limited license course through a Tennessee community college or vocational school; you still show relevant experience and a positive net worth and working capital. [1][3][5]

4. 4

   Building contractor (BC-A, BC-B, BC-C or BC)

   • Yes, Business and Law (50 questions, 2.5 hours) plus trade exam (BC-B: 100 questions, 5 hours); open book; Prov
   • $250 application; $53 per exam
   • $200 renewal

   Required to bid or contract projects of $25,000 or more. The company's qualifying agent (an owner, officer or full-time employee) passes the exams; the company submits a financial statement or surety bond, insurance, a reference letter and a notarized affidavit. Exams are typically valid for two years. [1][5][11]

How to start in construction in Tennessee

Tennessee doesn't license construction workers, carpenters or laborers. The license belongs to the contracting business, and you need it only when you bid or contract projects of $25,000 or more (or home improvement jobs of $3,000 or more in the nine counties that require that license).

Most people start by working for a builder or in an apprenticeship such as the ABC Greater Tennessee Construction Trades Academy, which asks for a high school diploma or GED, a driver's license and an age of at least 18. When you later apply for a license, the Board's rule says it may consider "previous employment, volunteer work, internships, education, training" as experience. [1][2][3][4]

Who needs a license

The Board says a contractor's license is required "before contracting, including bidding, offering to engage, or negotiating a price, for projects of $25,000 or more" as a prime contractor, certain subcontractors, or a construction manager or consultant. Subcontractors need one when their electrical, mechanical, plumbing, HVAC (heating, ventilation and air conditioning) or roofing portion is $25,000 or more; masonry subcontractors need one at $100,000 or more.

The $25,000 is the project's total cost under state law: all labor, materials, equipment, subcontracted work, overhead and profit, no matter who pays (materials the owner buys count too) and whether the work is under one contract or several.

Some people don't need the license. State law exempts an owner who builds a single home or a farm building for their own use, not to sell. Outside counties of 777,113 people or more, the owner exemption is limited to one single-residence permit every two years (a presumption that can be rebutted); ask your local building office. Builders who put up homes to sell or lease must be licensed.

A Home Improvement license covers residential remodeling from $3,000 to $24,999 in Bradley, Davidson, Hamilton, Haywood, Knox, Marion, Robertson, Rutherford and Shelby counties. It needs a $10,000 surety bond (or a cash or property bond or letter of credit), insurance and remodeling experience, and costs $250. [1][2][5][6][7]

Classes and the monetary limit

Building contractor classes are BC-A (residential), BC-B (commercial), BC-C (industrial), BC (all three), and combinations such as BC-A,b(sm) for residential and small commercial projects under $750,000. State law defines residential work as buildings of one to four family units, no more than three stories. The Board's rule says it looks at whether you have "adequate experience in the classifications requested", an established place of business, and the equipment the work needs.

Every license has a monetary limit per project: 10 times the lesser of working capital or net worth. A $150,000 limit, for example, needs $15,000 in both. An unlimited license needs $300,000 in both. The Board may let a job go up to 10% over your limit. For limits of $3,000,000 or less, the financial statement must be reviewed or audited by a CPA (certified public accountant) or licensed public accountant; above that, it must be audited. Since July 1, 2026, a surety bond of at least 50% of the requested limit can replace the financial statement. The bond must stay in force; if it lapses, the license is no longer valid. [1][3][6][7][8][9]

The exams

Each company names a qualifying agent (an owner, full-time employee or officer) who takes the exams; up to two people may take each exam for the company. Every contractor applicant except the limited residential BC-A/r takes the Tennessee Business and Law exam, and building classes add a trade exam. Since July 1, 2026, Prov gives the exams: computer-based, open book, $53 each, 73% to pass. Business and Law has 50 questions in 2.5 hours; the BC-B commercial exam has 100 questions in 5 hours. Exams are typically valid for two years.

The Board licenses exam prep course providers; if you take a prep course, it must be from one of them. [1][10][11]

Limited Residential license (BC-A/r)

For single-family homes where the total cost, including land the contractor owns, doesn't exceed $125,000, you can skip the BC-A and Business and Law exams by completing a Board-approved three-day limited license course at a Tennessee community college or vocational school. You still need a financial statement with positive net worth and working capital, proof of relevant experience and the other application items. There's no 10% tolerance on the limit, and joint ventures aren't allowed. [1][3]

If you're licensed in another state

The Board says "You cannot operate in Tennessee with a license from another state." It waives the trade exam for building contractors actively licensed in Alabama, Arkansas, Louisiana, Mississippi, North Carolina, South Carolina (commercial only) or West Virginia, and accepts the NASCLA National Commercial exam. You still take the Business and Law exam, and the waiver doesn't cover Home Improvement licenses. Applicants with discipline, open complaints or felony convictions aren't eligible. State law also says residents of states that have no reciprocal agreement with Tennessee are not to be offered work over $2,500; ask the Board how this applies to you before you bid.

Military members and spouses licensed in another state can get a license or temporary license through an expedited process if the Board finds the other state's requirements substantially equivalent. [1][3][9][12]

Steps to get licensed in Tennessee

1. Build construction experience

   Work for a builder or in an apprenticeship and keep records. The Board may count employment, volunteer work, internships, education and training. [3]

2. Pick your classification

   Choose residential (BC-A), commercial (BC-B), industrial (BC-C) or combined classes, or the limited residential BC-A/r for homes under $125,000. The Board's classification outline on its Forms page shows which classes need a trade exam. [1][3]

3. Pass the exams

   Schedule the Business and Law and trade exams with Prov ($53 each, open book). For BC-A/r, take the limited license course instead. [1][11]

4. Prepare finances, insurance and references

   Get a CPA-reviewed (or audited) financial statement or the Board's surety bond, general liability and workers' compensation insurance, a reference letter and a notarized contractor's affidavit. [1][8]

5. Apply online

   Register the business with the Secretary of State if needed, then file the Initial New Contractor Application at core.tn.gov with the $250 fee. [1][5]

Where to get the hours

Programs that train general contractors in or for Tennessee, from their own official pages. Listed by type, not ranked.

• Open shop

  ABC Greater Tennessee Construction Trades Academy

  Non-union craft training in Middle and East Tennessee, including carpentry in Knoxville; classes run 2 nights a week from September to spring. [4]

• State program

  Apprenticeship TN (Tennessee Department of Labor and Workforce Development)

  The state's apprenticeship office; it helps job seekers find an employer and employers register programs. [14]

• Other

  U.S. Department of Labor Apprenticeship Job Finder

  Search registered carpentry and construction apprenticeships anywhere in Tennessee. [15]

Licensed in another state?

Questions people ask