Tennessee Contract Licensing ‐ The Basic Requirements and Rules
As a specialty or general contractor in Tennessee, it's essential to know the rules and requirements of the state. This is especially crucial in Tennessee, which has six license classifications to be aware of if you perform work on projects over $3,000.
Having the wrong license can have many negative consequences so it's important to keep your business above board. In this guide, we'll share the current licensing rules and all the other details you need to know.
Choose the Right Licensing Type
Contractors' jobs can be composed of multiple types of work. The right license will
depend on everything from size to cost and category. For projects over $3,000, a
general contractor license is needed. A prime contractor license is required for jobs
Consider the area of focus you'll have as a contractor to determine which licensure is the best for your needs.
Take Appropriate Exams
Contractors need to pass the Tennessee Business and Law Exam, which goes over
business regulations, safety measures, contract agreements, and building laws.
Those who work on certain projects and with specific materials are considered specialty contractors. There are often additional approvals and exams to take before becoming licensed for work in HVAC, plumbing, electrical systems, and others.
Part of the process of applying and being approved for a contractor license is sharing
documentation, including business paperwork. This should show your credibility as
well as the compliance of your team.
In the State of Tennessee, the documentation needed includes subcontractor agreement information, proof of insurance, financial statements, and a business license. Be sure you provide precisely what you are asked for based on your desired licensing level and the type of work you intend to do.
Submit the Application
Once you have all the paperwork and have submitted it, you'll need to fill out the
official application for your license. This is going to be found on the state licensing
board website. You'll be asked to share your specializations, the type of license
desired, and the kind of work you do.
It can take a month or longer for an application to be approved so you may need to be patient. After you are approved as a contractor, you can move forward with jobs as long as they are covered under the parameters of your license.
At this point, you have the basic rules and requirements for contractors practicing in
Tennessee. We hope this gives you all the information you need to get your license
and start work. Being a contractor can be incredibly rewarding and provide you with
many opportunities as you move forward.
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