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Contractor Licensing in Minnesota: Which Trades Need a License

Yes, Minnesota requires a statewide license for 4 of 5 contractor trades, issued by 3 separate agencies. Initial costs run $64 to $200.

Minnesota requires statewide licensing for residential contractors, electricians, plumbers, and roofers through the Department of Labor and Industry (DLI). HVAC/mechanical contractors do NOT need a state license but must file a $25,000 surety bond with DLI. Residential building contractors, remodelers, and roofers are licensed separately. Electricians are licensed by the Board of Electricity and plumbers by the Plumbing Board, both under DLI.

Reciprocity Agreements

Minnesota has reciprocity agreements with 7 states. Licensed contractors from these states may be eligible to skip certain exams. Full Minnesota reciprocity guide: which states, what is waived, what it costs →

colorado — Journeyman Electrician reciprocity through NERA (National Electrical Reciprocal Alliance). Must hold current, active journeyman or master certificate obtained via state-administered exam for at least 1 year.
iowa — Journeyman Electrician reciprocity through NERA.
montana — Journeyman Electrician reciprocity through NERA.
nebraska — Journeyman Electrician reciprocity through NERA.
north dakota — Journeyman Electrician reciprocity through NERA.
south dakota — Journeyman Electrician reciprocity through NERA.
wyoming — Journeyman Electrician reciprocity through NERA.

Minnesota Licensing Overview

Minnesota requires statewide licensing for 4 of 5 contractor trades. The licensed trades — general contractor, electrician, plumber, roofing contractor — are regulated by 3 separate agencies: Minnesota Department of Labor and Industry (DLI), Minnesota Department of Labor and Industry — Board of Electricity (DLI), Minnesota Department of Labor and Industry — Plumbing Board (DLI). HVAC Technician licensing is handled at the city and county level rather than statewide. Across all licensed trades, initial costs range from $64 to $200, including application fees, exams, license issuance, fingerprinting, and any other fees the state requires to obtain the license. Minnesota also participates in reciprocity agreements with 7 other states, which can streamline the process for out-of-state contractors.

Minnesota Contractor License Cost Summary

TradeApplicationExamLicenseBondEst. Total
General Contractor$200———$200
Electrician$14$50—$25,000$64
Plumber$38$50$38$25,000$126
HVAC TechnicianLocal — no statewide fees
Roofing Contractor$180——$15,000$180

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 Minnesota

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 Minnesota. 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 Minnesota Contractor Licensing

  • General liability insurance required — must submit Certificate of Insurance with application and maintain throughout license term. Workers comp required for all employers. Proof of active coverage required before license issuance or renewal.
  • Minnesota does not require a statewide license for hvac technicians. Local permits may still apply.
  • Minnesota has reciprocity agreements with 7 states, which may allow licensed contractors to skip certain exams.
  • License covers residential construction only (1-4 unit dwellings)
  • Contractor Recovery Fund replaces individual surety bonds
  • Qualifying person must pass exam and fulfill CE requirements

You're licensed in Minnesota — 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 Minnesota Department of Labor and Industry issues the Residential Building Contractor / Residential Remodeler; the business that invoices Minnesota 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.

    Minnesota does not require a surety bond for this license — Minnesota uses a Contractor Recovery Fund instead of individual surety bonds. All licensees contribute $25/year to the fund. The fund compensates homeowners harmed by licensed contractors, up to $50,000 per claim.

  3. Carry the insurance the license requires.

    Minnesota requires general liability insurance for this license. General liability insurance required — must submit Certificate of Insurance with application and maintain throughout license term. Workers comp required for all employers. Proof of active coverage required before license issuance or renewal. 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 Minnesota require a contractor license?

Yes, Minnesota requires statewide licensing for 4 of 5 trades: general contractor, electrician, plumber, roofing contractor. HVAC Technician does not require a statewide license.

How much does a contractor license cost in Minnesota?

Initial licensing costs range from $64 to $200 depending on the trade, including application, exam, license and fingerprinting fees, plus any other fees the state requires to obtain the license.

Does Minnesota have license reciprocity with other states?

Yes, Minnesota has reciprocity agreements with 7 states. Licensed contractors from these states may be eligible to skip certain exams or have an expedited application process.

What trades require a state license in Minnesota?

Minnesota requires statewide licenses for: general contractor, electrician, plumber, roofing contractor. HVAC Technician licensing is handled at the local level.

Do I need workers compensation insurance in Minnesota?

General liability insurance required — must submit Certificate of Insurance with application and maintain throughout license term. Workers comp required for all employers. Proof of active coverage required before license issuance or renewal.