GetTradeLicense

General Contractor License Requirements in Minnesota

Licensing AuthorityMinnesota Department of Labor and Industry (DLI)
License TypeResidential Building Contractor / Residential Remodeler
Experience RequiredNo specific experience hours mandated at the state level. Must designate a 'qualifying person' (owner, officer, member, partner, or managing employee) who passes the comprehensive DLI written exam covering construction knowledge and Minnesota contractor law.
Exam RequiredYes — Residential Building Contractor Exam + Residential Remodeler Exam
Bond RequiredNo
InsuranceGeneral liability: required. Workers comp: required with employees
Continuing Education14 hours every 2 years
Processing Time2-4 weeks

Fee Breakdown

Application Fee$200
Est. Initial Total$200

Related & additional fees

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

License fee (varies by gross receipts tier)$200
Contractor Recovery Fund contribution (annual)$25
Total initial fees range$550

Renewal: $200 every 2 years

Exam Requirements

Residential Building Contractor Exam

Pass: 70%
Minnesota construction lawBuilding codesBusiness practicesSafety

Residential Remodeler Exam

Pass: 70%
Minnesota construction lawRemodeling codesBusiness practicesSafety

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 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→

License Tiers

Residential Building Contractor

Must designate a qualifying person who passes the DLI exam

Exam: Required

Residential Remodeler

Must designate a qualifying person who passes the DLI exam

Exam: Required

Notes

  • 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
  • License fees are tiered by gross annual receipts ($500-$700 range)

Local requirements on top of your Minnesota license

The DLI general contractor license is the credential that lets you work anywhere in Minnesota. On top of it, most Minnesota 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 Minnesota 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 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. Register locally.

    Most Minnesota 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 2 years at $200. Continuing education: 14 hours every 2 years.

Other licenses in Minnesota

Frequently Asked Questions

Do I need a general contractor license in Minnesota?

Yes, Minnesota requires a statewide general contractor license through the Minnesota Department of Labor and Industry.

How much does a general contractor license cost in Minnesota?

The estimated initial cost is $200, including application, exam, and license fees.

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

No specific experience hours mandated at the state level. Must designate a 'qualifying person' (owner, officer, member, partner, or managing employee) who passes the comprehensive DLI written exam covering construction knowledge and Minnesota contractor law.

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

You must pass the Residential Building Contractor Exam and Residential Remodeler Exam exams. A passing score of 70% is required. Exams are administered by PSI.

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

Processing time is typically 2-4 weeks after submitting a complete application.

Is continuing education required for general contractors in Minnesota?

Yes, 14 hours per every 2 years is required for license renewal.

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