Contractor Licensing by State

Contractor licensing in the United States is regulated by individual states, not the federal government. Each state writes its own licensing rules, sets its own dollar threshold for when a license is required, and runs its own exam and bond regime. There is no national contractor license. A pro licensed in Texas cannot legally pull permits in California without separate California licensing.

That patchwork is why hiring a contractor in a different state requires a fresh look at the rules. The state-level board, sometimes called the Contractors State License Board, Construction Contractors Board, or Department of Labor and Industries, is the authoritative source for license verification. Local cities and counties may also require a separate business license or trade-specific registration on top of the state license.

Forty-three states plus the District of Columbia require a state-level general contractor license for projects above a dollar threshold. The dollar threshold varies widely. California licenses any project above $500. Texas does not license general contractors at the state level but does license electrical and plumbing trades through TDLR and TSBPE.

States that do not require a state-level general contractor license, leaving regulation to cities or counties, include Texas, Pennsylvania, New Hampshire, Vermont, Maine, Wyoming, and Kansas. Even in those states, most large cities like Dallas, Pittsburgh, and Manchester run a local registration regime that effectively functions like a license.

• Most active boards: California CSLB, Florida DBPR, Oregon CCB, Washington L&I, North Carolina NCLBGC.
• No state GC license: Texas, Pennsylvania, New Hampshire, Vermont, Maine, Wyoming, Kansas.
• Most states require a separate trade license for electrical, plumbing, and HVAC.

Most state boards split contractor licenses into classes by trade. The most common classes are: general building (residential and light commercial), general engineering (heavy civil), specialty residential (low-voltage, swimming pool, etc.), electrical (often master and journeyman), plumbing (often master, journeyman, and apprentice), HVAC or mechanical, and roofing. California uses a letter system (A, B, C-X). Florida uses a CGC, CBC, CRC system for general contractors. Oregon uses a single CCB number plus endorsements.

Residential general contractor licenses are the most common class for home remodels, additions, and new single-family construction. Trade licenses are typically required even when a GC pulls the prime permit, because the trade work has to be performed by or under the supervision of a state-licensed tradesperson.

Most state boards require a contractor license bond plus general liability insurance. Bond amounts range from $7,500 in California to $20,000 plus in Oregon, depending on license class. General liability is typically $300,000 to $2 million per occurrence. Workers' comp is required in nearly every state for any contractor who has employees.

A bond is not insurance for the contractor. It is a financial guarantee for clients and subs. If the contractor walks off a job or fails to pay subs, claims can be made against the bond. The bond company then pursues the contractor for repayment. ContractShield checks bond status in addition to license status during verification.

Every state board has a public lookup tool. Search by license number first, fall back to business name or person name. Confirm the license is active, the class matches the work, the bond is current, and there are no disciplinary actions on file. ContractShield runs that verification automatically and refreshes on a recurring schedule, so a verified_pro contractor on the marketplace is always current.

Never rely on a license number printed on a truck wrap or business card. Verify on the state board lookup. If a contractor refuses to provide a license number, that is itself a red flag. Skip that bid.

Many cities require a separate local business license, contractor registration, or trade endorsement on top of the state license. Examples include the City of Houston plumbing registration, City of Dallas electrical contractor registration, and the City of Seattle business license tax certificate. The state license is necessary but not always sufficient. Always check both.

For permitted work, the local building department is also the authority on whether the licensed contractor can pull the permit. Some cities require the contractor to be on file with the building department before the city accepts permit applications under that license.

ContractShield pulls license data directly from state boards on a recurring schedule. License lapse triggers an automated downgrade from verified_pro tier. Insurance certificate expiration triggers the same flag. Workers' comp validation runs separately on the contractor profile. Contractors cannot bid on projects in a state where their license is not current.

The verification tier visible on every contractor profile climbs from basic, to licensed, to insured, to verified_pro. Only verified_pro and insured contractors can bid on projects above the per-state threshold. That filter protects clients from accidentally hiring a contractor with a recently lapsed license.