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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 over $25,000.

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.

Share Documentation

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.

Final Thoughts

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.

However, there are still challenges you will need to overcome. Collecting client payments can be stressful when people don't want to compensate you. If you find yourself in this situation, Nationwide Notice, Inc. is here to help. When it comes to getting paid in construction, no one assists quite like Nationwide Notice, Inc. We are a full-service and full-service lien and notice company - we prioritize assisting clients to ensure they secure their payments. We help construction companies of all sizes - whether they need assistance with lien laws and related documents based on their state, or to protect their receivables. Nationwide Notice, Inc. is just a call or click away - check out our website to learn more. Or check out this page to see what sets us apart from the competition.