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Contractor Licensing in Michigan: Which Trades Need a License

Yes, Michigan requires a statewide license for 5 of 5 contractor trades, issued by 3 separate agencies. Initial costs run $140 to $325.

Michigan requires statewide licensing for residential builders (general contractors), electricians, plumbers, and HVAC/mechanical contractors through the Department of Licensing and Regulatory Affairs (LARA), Bureau of Construction Codes (BCC). Roofing contractors must hold a Residential Builder or Maintenance & Alteration Contractor license. Michigan does not have reciprocity agreements with any other state for contractor trades.

Michigan Licensing Overview

Michigan requires statewide licensing for 5 of 5 contractor trades. The licensed trades — general contractor, electrician, plumber, hvac technician, roofing contractor — are regulated by 3 separate agencies: Michigan Department of Licensing and Regulatory Affairs, Bureau of Construction Codes (LARA/BCC), Michigan Department of Licensing and Regulatory Affairs, Bureau of Construction Codes, Plumbing Division (LARA/BCC), Michigan Department of Licensing and Regulatory Affairs, Bureau of Construction Codes, Mechanical Division (LARA/BCC). Across all licensed trades, initial costs range from $140 to $325, including application fees, exams, license issuance, fingerprinting, and any other fees the state requires to obtain the license.

Michigan Contractor License Cost Summary

TradeApplicationExamLicenseBondEst. Total
General Contractor$195$117——$312
Electrician$40$100——$140
Plumber$40$100——$140
HVAC Technician$300$25——$325
Roofing Contractor$185$117——$302

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 Michigan

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 Michigan. 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→

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.

Key Facts About Michigan Contractor Licensing

  • No state-mandated GL minimum for residential builders, but $500,000 GL coverage is industry standard. Workers comp required if you have employees.
  • License covers residential construction, alteration, repair, and remodeling of 1- and 2-family dwellings over $600
  • Renewal deadline: May 31, 2026 for current cycle
  • Schedule PSI exam at www.psiexams.com or call (800) 733-9267

You're licensed in Michigan — 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 Michigan Department of Licensing and Regulatory Affairs, Bureau of Construction Codes issues the Residential Builder / Maintenance & Alteration Contractor; the business that invoices Michigan 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. Bond: none required by the state.

    Michigan does not require a surety bond for this license — No state-level surety bond required. Some municipalities (Detroit, Flint, Grand Rapids, Kalamazoo, St. Clair Shores, Oakland County) require local contractor bonds.

  3. Carry general liability insurance.

    Michigan does not set a general liability minimum for this trade, but most permits and commercial customers ask for proof of GL cover. No state-mandated GL minimum for residential builders, but $500,000 GL coverage is industry standard. Workers comp required if you have employees. 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 Michigan require a contractor license?

Yes, Michigan requires statewide licensing for 5 of 5 trades: general contractor, electrician, plumber, hvac technician, roofing contractor.

How much does a contractor license cost in Michigan?

Initial licensing costs range from $140 to $325 depending on the trade, including application, exam, license and fingerprinting fees, plus any other fees the state requires to obtain the license.

Does Michigan have license reciprocity with other states?

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

Do I need workers compensation insurance in Michigan?

No state-mandated GL minimum for residential builders, but $500,000 GL coverage is industry standard. Workers comp required if you have employees.