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General Contractor License Requirements in Arkansas

Licensing AuthorityArkansas Contractors Licensing Board (ACLB)
License TypeCommercial / Residential Building
Experience RequiredCommercial: 5 years minimum with $50,000 net worth. Residential Building: 4 years minimum with $10,000 net worth. Residential Remodeler: 2 years minimum. Must provide 3 professional references verifying experience.
Education SubstituteConstruction management degree may substitute for up to 2 years of experience
Exam RequiredYes — Arkansas Business and Law Exam
Bond RequiredYes — $10,000
InsuranceGeneral liability: recommended. Workers comp: required with employees
Continuing EducationNot required
Processing Time4-8 weeks

Fee Breakdown

Application Fee$100
Exam Fee$80
Est. Initial Total$180

Related & additional fees

Separate or ongoing costs — not included in the estimate above.

Residential Remodeler/Home Improvement filing fee$50

Renewal: $100 every 1 year

Exam Requirements

Arkansas Business and Law Exam

50 questions2 hoursPass: 70%
Arkansas construction lawLien lawsSafety regulationsBusiness management

Exam provider: PSI

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.

Some links below are affiliate links. If you buy through them we may earn a commission at no extra cost to you.

Set up the business before you apply in Arkansas

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 Arkansas. Northwest forms the entity and acts as your registered agent — a flat fee, no upsell funnel.

Some links below are affiliate links. If you buy through them we may earn a commission at no extra cost to you.

Form an LLC with Northwest→

License Tiers

Commercial Contractor

5 years experience; $50,000 minimum net worth; projects $50,000+

Exam: Required

Residential Building Contractor

4 years experience; $10,000 minimum net worth

Exam: Required

Residential Remodeler

2 years experience

Exam: Required

Home Improvement Specialty

Varies by specialty

Exam: Not required

License Reciprocity

This state has reciprocity agreements with 4 states. View full reciprocity details — You may be able to skip the trade exam if you hold a valid license from one of these states.

tennesseeReciprocity for contractor licenses; Tennessee contractors must have held a valid license for at least 3 years. Must complete reciprocal application form and pay standard fees.
mississippiReciprocity for contractor licenses; Mississippi contractors must have held a valid license for at least 1 year
alabamaReciprocity for contractor licenses; Alabama contractors must have held a valid license for at least 1 year
louisianaReciprocity for contractor licenses; Louisiana contractors must have a valid license in good standing

Notes

  • Home Improvement Specialty licensees are exempt from the exam requirement
  • Financial statement from a CPA required for Commercial ($50,000 net worth) and Residential Building ($10,000 net worth)
  • License expires 1 year from date of issuance

Local requirements on top of your Arkansas license

The ACLB general contractor license is the credential that lets you work anywhere in Arkansas. On top of it, most Arkansas cities and counties require a local business license (a tax registration) to operate, and a few add their own contractor registration or permit. These are in addition to your state license, not a replacement — always confirm the rules with the city or county where the job is.

You're licensed in Arkansas as a general contractor — 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.

Some links below are affiliate links. If you buy through them we may earn a commission at no extra cost to you.

  1. Form the business and get an EIN.

    The Arkansas Contractors Licensing Board issues the Commercial / Residential Building; the business that invoices Arkansas 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.

  2. Post the bond.

    Arkansas requires a $10,000 surety bond. $10,000 surety bond required for Commercial contractors. Residential contractors may not need a bond but must show financial statements from a CPA. How contractor bonds work→

  3. Carry general liability insurance.

    Arkansas does not set a general liability minimum for this trade, but most permits and commercial customers ask for proof of GL cover. Arkansas does not require GL insurance for general contractors at the state level, but workers comp is mandatory if you have more than one employee. Contractor insurance requirements→

  4. Register locally.

    Most Arkansas cities and counties require a local business license (a tax registration) on top of the state credential, and a few add their own contractor registration or permit — confirm with the city or county where the job is.

  5. 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 general contractor 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→

  6. Keep the license.

    Renewal is every year at $100.

Other licenses in Arkansas

Frequently Asked Questions

Do I need a general contractor license in Arkansas?

Yes, Arkansas requires a statewide general contractor license through the Arkansas Contractors Licensing Board.

How much does a general contractor license cost in Arkansas?

The estimated initial cost is $180, including application, exam, and license fees. A $10,000 surety bond is also required.

What experience do I need for a general contractor license in Arkansas?

Commercial: 5 years minimum with $50,000 net worth. Residential Building: 4 years minimum with $10,000 net worth. Residential Remodeler: 2 years minimum. Must provide 3 professional references verifying experience. Education substitute: Construction management degree may substitute for up to 2 years of experience

What exams are required for a general contractor license in Arkansas?

You must pass the Arkansas Business and Law Exam exam. A passing score of 70% is required. Exams are administered by PSI.

Do I need a bond for a general contractor license in Arkansas?

Yes, a $10,000 surety bond is required. $10,000 surety bond required for Commercial contractors. Residential contractors may not need a bond but must show financial statements from a CPA.

Does Arkansas have general contractor license reciprocity?

Yes, Arkansas has reciprocity agreements with 4 states that may apply to general contractors. Licensed contractors from these states may be eligible to skip certain exams or have an expedited application process.

How long does it take to get a general contractor license in Arkansas?

Processing time is typically 4-8 weeks after submitting a complete application.

Is continuing education required for general contractors in Arkansas?

No, Arkansas does not currently require continuing education for general contractor license renewal.

Data last verified: 2026-04-02 | Source: ACLB