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Contractor Licensing in Illinois: Which Trades Need a License

Yes, Illinois requires a statewide license for 2 of 5 contractor trades, issued by 2 separate agencies. Initial costs run $351 to $500.

Illinois does NOT have a statewide general contractor license — licensing is handled at the city/county level (e.g., Chicago Department of Buildings). However, Illinois is unique in requiring statewide roofing contractor licensing under the Roofing Industry Licensing Act (administered by IDFPR). Plumbers are licensed statewide through the Illinois Department of Public Health (IDPH). Electricians and HVAC technicians have no statewide license; both are regulated locally. Federal EPA 608 certification is required for HVAC refrigerant work.

Illinois Licensing Overview

Illinois requires statewide licensing for 2 of 5 contractor trades. The licensed trades — plumber, roofing contractor — are regulated by 2 separate agencies: Illinois Department of Public Health (IDPH), Illinois Department of Financial and Professional Regulation (IDFPR). General Contractor and Electrician and HVAC Technician licensing is handled at the city and county level rather than statewide. Across all licensed trades, initial costs range from $351 to $500, including application fees, exams, license issuance, fingerprinting, and any other fees the state requires to obtain the license.

Illinois Contractor License Cost Summary

TradeApplicationExamLicenseBondEst. Total
General ContractorLocal — no statewide fees
ElectricianLocal — no statewide fees
Plumber$175$175$150$20,000$500
HVAC TechnicianLocal — no statewide fees
Roofing Contractor$125$226—$10,000$351

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 Illinois

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 Illinois. 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→

Key Facts About Illinois Contractor Licensing

  • No state insurance mandate for general contractors. Workers comp is mandatory for any Illinois employer with even one employee — construction is classified as extra-hazardous so owners/officers cannot be exempted. Failure to carry workers comp can result in fines of $500/day with a $10,000 minimum. GL insurance amounts are set by local jurisdictions.
  • Illinois does not require a statewide license for general contractor or electrician or hvac technicians. Local permits may still apply.
  • Illinois is one of the states that does not require statewide general contractor licensing
  • Chicago Department of Buildings is the largest local licensing authority: chicago.gov/city/en/depts/bldgs
  • Cook County requires contractor registration through the Building and Zoning department

You're licensed in Illinois — 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 Illinois Department of Public Health issues the Licensed Plumber / Plumbing Contractor Registration; the business that invoices Illinois 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.

    Illinois requires a $20,000 surety bond. Plumbing contractors must deposit cash or maintain a $20,000 surety/indemnification bond or letter of credit. Bond expires annually on September 30. How contractor bonds work→

  3. Carry the insurance the license requires.

    Illinois requires general liability insurance for this license. Plumbing contractors must carry: GL with $100,000 per occurrence / $300,000 aggregate for bodily injury, $50,000 property damage (or $300,000 combined single limit). Workers comp with $500,000 employer's liability (sole proprietors/partnerships with no employees are exempt). IDPH must be listed as certificate holder. Contractor insurance requirements→

  4. 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 Illinois require a contractor license?

Yes, Illinois requires statewide licensing for 2 of 5 trades: plumber, roofing contractor. General Contractor and Electrician and HVAC Technician do not require a statewide license.

How much does a contractor license cost in Illinois?

Initial licensing costs range from $351 to $500 depending on the trade, including application, exam, license and fingerprinting fees, plus any other fees the state requires to obtain the license.

Does Illinois have license reciprocity with other states?

Illinois does not currently have reciprocity agreements with other states. Contractors from other states must apply and meet the full requirements.

What trades require a state license in Illinois?

Illinois requires statewide licenses for: plumber, roofing contractor. General Contractor and Electrician and HVAC Technician licensing is handled at the local level.

Do I need workers compensation insurance in Illinois?

No state insurance mandate for general contractors. Workers comp is mandatory for any Illinois employer with even one employee — construction is classified as extra-hazardous so owners/officers cannot be exempted. Failure to carry workers comp can result in fines of $500/day with a $10,000 minimum. GL insurance amounts are set by local jurisdictions.

Official Illinois Licensing Resources