Contractor Licensing in Tennessee: Which Trades Need a License
Yes, Tennessee requires a statewide license for 5 of 5 contractor trades, issued by 3 separate agencies. Initial costs run $107 to $364.
Tennessee requires statewide contractor licensing for any construction project valued at $25,000 or more, administered by the Board for Licensing Contractors (BLC). Electricians and plumbers have a two-tier system: a Limited License for projects under $25,000 and a full Contractor license for larger projects. HVAC and roofing fall under the general contractor classifications. Tennessee has extensive reciprocity agreements with neighboring states.
General Contractor
RequiredOversees and manages construction projects, coordinating subcontractors, materials, and timelines for residential and commercial builds.
View full requirements →Electrician
RequiredInstalls, maintains, and repairs electrical wiring, systems, and fixtures in residential, commercial, and industrial settings.
View full requirements →Plumber
RequiredInstalls and repairs water supply lines, drainage systems, fixtures, and appliances in buildings and other structures.
View full requirements →HVAC Technician
RequiredInstalls, services, and repairs heating, ventilation, air conditioning, and refrigeration systems.
View full requirements →Roofing Contractor
RequiredInstalls, repairs, and replaces roofing systems on residential and commercial structures.
View full requirements →Reciprocity Agreements
Tennessee has reciprocity agreements with 9 states. Licensed contractors from these states may be eligible to skip certain exams. Full Tennessee reciprocity guide: which states, what is waived, what it costs →
Tennessee Licensing Overview
Tennessee 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: Tennessee Board for Licensing Contractors (BLC), Tennessee Board for Licensing Contractors / LLE Board (BLC/LLE), Tennessee Board for Licensing Contractors / LLP Board (BLC/LLP). Across all licensed trades, initial costs range from $107 to $364, including application fees, exams, license issuance, fingerprinting, and any other fees the state requires to obtain the license. Tennessee also participates in reciprocity agreements with 9 other states, which can streamline the process for out-of-state contractors.
Tennessee Contractor License Cost Summary
| Trade | Application | Exam | License | Bond | Est. Total |
|---|---|---|---|---|---|
| General Contractor | $250 | $114 | — | — | $364 |
| Electrician | $50 | $57 | — | — | $107 |
| Plumber | $75 | $57 | — | — | $132 |
| HVAC Technician | $250 | $114 | — | — | $364 |
| Roofing Contractor | $250 | $57 | — | $10,000 | $307 |
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 Tennessee
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 Tennessee. Northwest forms the entity and acts as your registered agent — a flat fee, no upsell funnel.
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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.
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Mometrix · SponsoredContractor License Online Study CourseFull online prep course covering the trade and business-and-law exams — video lessons, practice questions, and a study plan built for a first-try pass.See the course →
Mometrix · SponsoredContractor's Exam FlashcardsPortable flashcards for the high-frequency exam topics — a cheaper add-on for drilling terms and code references on the go.See the flashcards →Key Facts About Tennessee Contractor Licensing
- GL required, scaled to license limit: $100K (up to $500K jobs), $500K ($500K-$1.5M), $1M ($1.5M+). Workers comp required for 1+ construction employees (construction has 1-employee threshold).
- Tennessee has reciprocity agreements with 9 states, which may allow licensed contractors to skip certain exams.
- License required for projects $25,000+
- Financial statement required: reviewed CPA (under $1.5M) or audited CPA (over $1.5M)
- Monetary limit = 10x working capital or 10% of net worth (whichever is less)
You're licensed in Tennessee — 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.
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Form the business and get an EIN.
The Tennessee Board for Licensing Contractors issues the BC-A (Residential) / BC-B (Commercial) / BC-C (Industrial); the business that invoices Tennessee 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.
Bond: none required by the state.
Tennessee does not require a surety bond for this license — Not universally required. Board may require surety bond if financial statements are insufficient: $500,000 (limits under $1.5M) or $1,000,000 (limits over $1.5M).
Carry the insurance the license requires.
Tennessee requires general liability insurance for this license. GL required, scaled to license limit: $100K (up to $500K jobs), $500K ($500K-$1.5M), $1M ($1.5M+). Workers comp required for 1+ construction employees (construction has 1-employee threshold). Contractor insurance requirements→
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 Tennessee require a contractor license?
Yes, Tennessee requires statewide licensing for 5 of 5 trades: general contractor, electrician, plumber, hvac technician, roofing contractor.
How much does a contractor license cost in Tennessee?
Initial licensing costs range from $107 to $364 depending on the trade, including application, exam, license and fingerprinting fees, plus any other fees the state requires to obtain the license.
Does Tennessee have license reciprocity with other states?
Yes, Tennessee has reciprocity agreements with 9 states. Licensed contractors from these states may be eligible to skip certain exams or have an expedited application process.
Do I need workers compensation insurance in Tennessee?
GL required, scaled to license limit: $100K (up to $500K jobs), $500K ($500K-$1.5M), $1M ($1.5M+). Workers comp required for 1+ construction employees (construction has 1-employee threshold).
Official Tennessee Licensing Resources
- Tennessee Board for Licensing Contractors (BLC) — for general contractor, hvac technician, roofing contractor
- Tennessee Board for Licensing Contractors / LLE Board (BLC/LLE) — for electrician
- Tennessee Board for Licensing Contractors / LLP Board (BLC/LLP) — for plumber