Contractor Licensing in Alabama: Which Trades Need a License
Yes, Alabama requires a statewide license for 5 of 5 contractor trades, issued by 5 separate agencies. Initial costs run $150 to $574.
Alabama requires statewide licensing for general contractors (projects $100,000+), electricians, plumbers, HVAC contractors, and residential roofers (projects $2,500+). Each trade is regulated by a separate state board. Alabama has reciprocity agreements with several southeastern states, particularly for general contractors and electricians. The state uses a classification-based system for general contractors with monetary limits tied to net worth or working capital.
General Contractor
RequiredOversees and manages construction projects, coordinating subcontractors, materials, and timelines for residential and commercial builds.
View full requirements →Electrician
RequiredInstalls, maintains, and repairs electrical wiring, systems, and fixtures in residential, commercial, and industrial settings.
View full requirements →Plumber
RequiredInstalls and repairs water supply lines, drainage systems, fixtures, and appliances in buildings and other structures.
View full requirements →HVAC Technician
RequiredInstalls, services, and repairs heating, ventilation, air conditioning, and refrigeration systems.
View full requirements →Roofing Contractor
RequiredInstalls, repairs, and replaces roofing systems on residential and commercial structures.
View full requirements →Reciprocity Agreements
Alabama has reciprocity agreements with 10 states. Licensed contractors from these states may be eligible to skip certain exams. Full Alabama reciprocity guide: which states, what is waived, what it costs →
Alabama Licensing Overview
Alabama requires statewide licensing for 5 of 5 contractor trades. The licensed trades — general contractor, electrician, plumber, hvac technician, roofing contractor — are regulated by 5 separate agencies: Alabama Licensing Board for General Contractors (ALBGC), Alabama Electrical Contractors Board (AECB), Alabama Plumbers and Gas Fitters Examining Board (PGFB), Alabama Board of Heating, Air Conditioning & Refrigeration Contractors (HACR), Alabama Home Builders Licensure Board (HBLB). Across all licensed trades, initial costs range from $150 to $574, including application fees, exams, license issuance, fingerprinting, and any other fees the state requires to obtain the license. Alabama also participates in reciprocity agreements with 10 other states, which can streamline the process for out-of-state contractors.
Alabama Contractor License Cost Summary
| Trade | Application | Exam | License | Bond | Est. Total |
|---|---|---|---|---|---|
| General Contractor | $300 | $111 | $163 | — | $574 |
| Electrician | — | $115 | $35 | $1,000 | $150 |
| Plumber | $50 | $110 | $75 | $2,000 | $235 |
| HVAC Technician | — | $150 | $190 | $15,000 | $340 |
| Roofing Contractor | $100 | — | $150 | $10,000 | $250 |
Estimated totals include application, exam, license, and fingerprinting fees, plus any other fees the state requires to obtain the license. Bond amounts are separate and typically paid as an annual premium.
Set up the business before you apply in Alabama
Most states license the company as well as the person, so the application usually asks for an LLC or corporation and a registered agent in Alabama. Northwest forms the entity and acts as your registered agent — a flat fee, no upsell funnel.
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Form an LLC with Northwest→Recommended exam prep
Formal prep pays for itself against a $100+ retake. Many states examine contractors on two separate papers — the trade exam and a business and law exam — so we list the course covering both first, with trade-specific depth after.
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Mometrix · SponsoredContractor License Online Study CourseFull online prep course covering the trade and business-and-law exams — video lessons, practice questions, and a study plan built for a first-try pass.See the course →
Mometrix · SponsoredContractor's Exam FlashcardsPortable flashcards for the high-frequency exam topics — a cheaper add-on for drilling terms and code references on the go.See the flashcards →Key Facts About Alabama Contractor Licensing
- GL required: $1M per occurrence / $2M aggregate recommended (industry standard for Alabama). Commercial auto: $1M combined single limit. Workers comp required for employers with 5+ employees (Alabama Department of Labor).
- Alabama has reciprocity agreements with 10 states, which may allow licensed contractors to skip certain exams.
- License required for any project $100,000+ (labor + materials combined)
- Swimming pool construction requires license for projects $5,000+
- Major classifications: Building (BL), Highways & Streets (HS), Municipal & Utility (MU)
You're licensed in Alabama — the next 30 days
Most of the steps below are required before your first paid job; the order is the order the state and its counties will ask for them.
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Form the business and get an EIN.
The Alabama Licensing Board for General Contractors issues the General Contractor — Building (BL) / Highways & Streets (HS) / Municipal & Utility (MU); the business that invoices Alabama customers is a separate decision. A sole proprietorship is the default, an LLC keeps business liability off your personal assets, and either needs an EIN before the first payroll. Settle it before the license number goes on an estimate.
Bond: none required by the state.
Alabama does not require a surety bond for this license — Not required at the state level for ALBGC licensees. Some municipalities may require local surety bonds. Financial statement review determines license classification instead.
Carry the insurance the license requires.
Alabama requires general liability insurance for this license. GL required: $1M per occurrence / $2M aggregate recommended (industry standard for Alabama). Commercial auto: $1M combined single limit. Workers comp required for employers with 5+ employees (Alabama Department of Labor). Contractor insurance requirements→
Set up quoting, scheduling and invoicing before the first call.
Your first customers will ask for a written estimate and expect to pay by card on site. Most one-truck home-service businesses run that on field-service software; Housecall Pro is the one we link because it is built for this size of company and this link carries 20% off your first 12 months. Start a free trial of Housecall Pro→
Frequently Asked Questions
Does Alabama require a contractor license?
Yes, Alabama requires statewide licensing for 5 of 5 trades: general contractor, electrician, plumber, hvac technician, roofing contractor.
How much does a contractor license cost in Alabama?
Initial licensing costs range from $150 to $574 depending on the trade, including application, exam, license and fingerprinting fees, plus any other fees the state requires to obtain the license.
Does Alabama have license reciprocity with other states?
Yes, Alabama has reciprocity agreements with 10 states. Licensed contractors from these states may be eligible to skip certain exams or have an expedited application process.
Do I need workers compensation insurance in Alabama?
GL required: $1M per occurrence / $2M aggregate recommended (industry standard for Alabama). Commercial auto: $1M combined single limit. Workers comp required for employers with 5+ employees (Alabama Department of Labor).
Official Alabama Licensing Resources
- Alabama Licensing Board for General Contractors (ALBGC) — for general contractor
- Alabama Electrical Contractors Board (AECB) — for electrician
- Alabama Plumbers and Gas Fitters Examining Board (PGFB) — for plumber
- Alabama Board of Heating, Air Conditioning & Refrigeration Contractors (HACR) — for hvac technician
- Alabama Home Builders Licensure Board (HBLB) — for roofing contractor