Your Guide to Getting a Kentucky Contractors License

Thinking about turning your fix-it skills into a full-time business? Whether you’re building residential units, remodeling kitchens, or tackling odd jobs around town, getting the correct Kentucky contractor’s license is a smart first step. This guide breaks down helpful tips to get started with confidence.

Do You Need a Contractor’s License in Kentucky?

Kentucky doesn’t require a statewide license for general contractors or handymen — licensing is handled locally. Some cities and counties may require licensing for nearly every type of contractor. Others require only a license for specialty trades, such as plumbing or electrical. That means if you’re planning to work across different jurisdictions, you’ll need to check individual city and county rules.

How Do I Get a Contractor License at the Local Level?

Since licensing varies by location, you’ll need to start by contacting the city or county where you plan to work. Here’s a general overview of what you can expect:

• Identify your local licensing authority: Ask about specific requirements for general contractors or handymen.
• Register your business: Most business owners must register with the Kentucky Secretary of State and the Department of Revenue. Kentucky’s One Stop business portal¹ can help guide you through the process. You also may need to register with your local² city or county. 
• Provide required documentation: The registration and licensing process may include providing proof of general liability and workers’ compensation insurance (or an affidavit of exemption).
• Complete any required exams: Some trade specialties require passing an exam.
• Submit your application: Include all supporting documents and pay any fees.

Let’s look at how this works in three major counties:

Louisville

In Louisville and Jefferson County, you don’t need a local business license, but you do need to register ³ and obtain a license before doing any work. These requirements can change so it’s always best to double check the current guidance. Louisville offers two main license types for general contractors and handymen:

• Building Type A: For contractors who need multiple permits for single- or multi-family dwellings. This license requires 6 hours of continuing education with an annual fee of $125.
• Building Type B: For contractors who need only one permit per year. The annual fee is $50.

Here are the steps to obtain a license:

• Register with the Louisville Metro Revenue Commission⁴ to get an occupational license number.
• Complete a contractor license application⁵ through the Louisville-Jefferson County Metro Government.
• Submit supporting documents, including proof of:
  • General liability insurance (usually requires a minimum of $250,000).
  • Workers’ compensation or an affidavit of exemption, if applicable.
  • Compliance with unemployment insurance laws.

Lexington

If you’re planning to work in Lexington or Fayette County, you’ll need to register with the Lexington-Fayette Urban County Government.⁶ Lexington offers two registration options:

• General contractor: Allows work on residential (4+ units), commercial, industrial, and public works. Fee: $240 total ($40 initial + $200 annual).
• Residential-only contractor: Can cover up to two-family homes and home remodeling. Fee: $115 total ($40 initial + $75 annual).

Here are the registration steps:⁷

• Secure a certificate of occupancy if your office is in Fayette County.
• Apply for an occupational business license from the city’s Revenue Department.⁸
• Provide proof of insurance:
  • General liability
  • Workers’ comp (or an affidavit if exempt)

Fax your insurance documents to the Lexington Division of Building Inspection⁹ at 859-258-3780.

Bowling Green

To become a general contractor in this area, you must obtain a contractor license from the Bowling Green-Warren County Contractors Licensing Board.¹⁰ This process involves the following steps:

• Submit an application form¹¹ with the general contractor license fee of $250.
• Provide proof of general liability insurance.
• Provide proof of workers’ compensation insurance (or sign an affidavit of exemption).

Do Plumbers and Electricians Need a License?

Yes. Plumbers and electricians must obtain a state-issued Kentucky contractor’s license from the Kentucky Department of Housing, Building, and Construction.¹²

To apply for a plumbing or electrical license, visit the state licensing page.¹³

How Often Do I Have to Renew My Kentucky Contractor License?

Most contractors must renew their Kentucky contractor’s license annually. You also may need to complete continuing education, especially for trade licenses. Check with your local licensing board for confirmation as requirements can change.

Do I Need Business Insurance?

If you have employees, workers’ compensation insurance is typically required.

Even if you don’t have employees, carrying workers’ comp and general liability insurance is a smart investment. It can help protect your business financially from claims related to third-party accidents, third-party property damage, or injuries on the job, and can help build trust and confidence with clients.

Need help finding coverage? We can connect you with quotes from top insurers who specialize in contractor and handyman insurance.

Ready to Get to Work?

Obtaining licenses, registration, and insurance are key steps to launching a contracting business in Kentucky. But being licensed and insured is just the start, and our online Resource Center is filled with useful articles, tools, and tips to help your growing business thrive.

Here are just a few resources to get you started:

• General Contractor Insurance: Everything You Need to Know
• FREE Contractor Invoice Template
• How to Get a Kentucky Business License

If you still have questions about how to get a contractor’s license in Kentucky, we encourage you to speak with local legal and tax professionals who can assist you.

References:

1. https://onestop.ky.gov/start/Pages/default.aspx ↩︎
2. https://onestop.ky.gov/start/Pages/localrequirements.aspx ↩︎
3. https://louisvilleky.gov/government/revenue-commission/frequently-asked-questions ↩︎
4. https://louisvilleky.gov/government/revenue-commission ↩︎
5. https://louisvilleky.gov/sites/default/files/migration/files/combined_license_application_0.pdf ↩︎
6. https://www.lexingtonky.gov/ ↩︎
7. https://www.lexingtonky.gov/working/bids-quotes-rfps/how-register-contractor ↩︎
8. https://www.lexingtonky.gov/working/business-licensing-taxes/occupational-license-fee-rates-current-forms ↩︎
9. https://www.lexingtonky.gov/working/bids-quotes-rfps/how-register-contractor ↩︎
10. https://www.bgky.org/contractorslicensing/faq#313 ↩︎
11. https://www.bgky.org/files/9in3ppZh.pdf ↩︎
12. https://dhbc.ky.gov/newstatic_info.aspx?static_id=292 ↩︎
13. https://dhbc.ky.gov/new_docs.aspx?cat=150 ↩︎