There’s no national contractor license in the US. Licensing is set by each state, and in some states by each city or county, and it often splits between a general contractor license and separate trade licenses. For a homeowner, checking the license is the first and cheapest protection there is. For a contractor, working unlicensed can mean losing the right to be paid at all.
How it’s usually layered
- State general contractor or home improvement license. Many states have one, often with a dollar threshold below which no license is needed. California’s threshold is $1,000 in labor and materials, or any job that needs a permit (raised from $500 in 2025).
- Local licensing. Some large states, including Texas and New York, have no statewide general contractor license; cities and counties license instead. Check with the city or county where the work is.
- Trade licenses. Electrical, plumbing and HVAC work usually needs its own license, most often from the state, whatever the general contractor holds.
- Registration, bonds and insurance. Some states register rather than license, and many require a bond or proof of insurance to register.
Working across state lines
Many states accept the NASCLA accredited exam for commercial licensing, which can save a second exam when you expand. Each state still issues its own license.
Lead-safe work in older homes
Renovation in homes built before 1978 that disturbs more than 6 square feet of painted surface inside, or 20 square feet outside, or replaces windows, falls under the EPA’s Renovation, Repair and Painting rule. That needs a certified firm, a certified renovator on the job, and the “Renovate Right” pamphlet given to the owner before work starts. Some states run the program themselves.
For homeowners: how to check
- Get the license number and the name it’s issued to.
- Look it up on the state board’s website, or the city’s, and check it’s active, for this kind of work, and in the same name as the contract.
- Ask for insurance certificates sent directly from the insurer or agent.
This is a general overview, not legal advice. Licensing rules change and differ by state and city; the licensing board where the work is done has the final word.