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General Contractor License Requirements in Michigan

Licensing AuthorityMichigan Department of Licensing and Regulatory Affairs, Bureau of Construction Codes (LARA/BCC)
License TypeResidential Builder / Maintenance & Alteration Contractor
Experience RequiredResidential Builder: 3 years verifiable experience in residential construction within the past 10 years. Maintenance & Alteration Contractor: 1 year verifiable experience. Alternatively, complete 60 hours of LARA-approved prelicensure education (minimum 6 hours per subject area).
Education Substitute60 hours of approved prelicensure education covering: business management, estimating & job costing, design & building science, contracts & liability, marketing & sales, project management, Michigan Residential Code, and construction safety standards
Exam RequiredYes — Business and Law Exam + Practice and Trade Exam
Bond RequiredNo
InsuranceGeneral liability: recommended. Workers comp: required with employees
Continuing Education21 hours every 3 years (21 hours if licensed < 6 years; 3 hours if licensed 6+ years)
Processing Time2-3 weeks

Fee Breakdown

Application Fee$195
Exam Fee$117
Est. Initial Total$312

Related & additional fees

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

M&A Contractor application$185
Late renewal surcharge$20

Renewal: $185 every 3 years

Exam Requirements

Business and Law Exam

50 questions75 minutesPass: 70% minimum on each section (36/50 Business & Law)
Michigan contractor lawBusiness practicesContractsLiability

Practice and Trade Exam

110 questions180 minutesPass: 70% minimum on each section (36/50 Business & Law)
Michigan Residential CodeBuilding practicesSafety regulationsConstruction methods

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 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→

License Tiers

Maintenance & Alteration Contractor

1 year verifiable residential construction experience (within past 10 years), OR 60 hours prelicensure education

Exam: Required

Residential Builder

3 years verifiable residential construction experience (within past 10 years), OR 60 hours prelicensure education

Exam: Required

Notes

  • 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

Local requirements on top of your Michigan license

The LARA/BCC general contractor license is the credential that lets you work anywhere in Michigan. On top of it, most Michigan 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 Michigan 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 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. Register locally.

    Most Michigan 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. Several Michigan municipalities require additional local contractor bonds or registration. Check with your local building department.

  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 3 years at $185. Continuing education: 21 hours every 3 years (21 hours if licensed < 6 years; 3 hours if licensed 6+ years)

Other licenses in Michigan

Frequently Asked Questions

Do I need a general contractor license in Michigan?

Yes, Michigan requires a statewide general contractor license through the Michigan Department of Licensing and Regulatory Affairs, Bureau of Construction Codes.

How much does a general contractor license cost in Michigan?

The estimated initial cost is $312, including application, exam, and license fees.

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

Residential Builder: 3 years verifiable experience in residential construction within the past 10 years. Maintenance & Alteration Contractor: 1 year verifiable experience. Alternatively, complete 60 hours of LARA-approved prelicensure education (minimum 6 hours per subject area). Education substitute: 60 hours of approved prelicensure education covering: business management, estimating & job costing, design & building science, contracts & liability, marketing & sales, project management, Michigan Residential Code, and construction safety standards

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

You must pass the Business and Law Exam and Practice and Trade Exam exams. A passing score of 70% minimum on each section (36/50 Business & Law) is required. Exams are administered by PSI.

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

Processing time is typically 2-3 weeks after submitting a complete application.

Is continuing education required for general contractors in Michigan?

Yes, 21 hours per every 3 years (21 hours if licensed < 6 years; 3 hours if licensed 6+ years) is required for license renewal.

Data last verified: 2026-04-02 | Source: LARA/BCC