How to Get an Arkansas Contractors License

Admit it: You’ve got a real talent for carpentry. Whether it’s helping a friend putting up new kitchen cabinets or repairing a few leaks on your roof, there’s nothing you can’t build or fix.

Now you’re ready to take it to the next level — and getting your Arkansas contractors license is the first step. 

Does Arkansas Require a Contractor License?

Yes — if you’re working on a construction project, you’ll need an Arkansas contractors license. Without one, you could be missing the chance to build a stronger foundation for your business — from residential remodels to higher-end home improvement projects. 

How do I Become a Licensed Contractor in Arkansas?

Arkansas contractors licensing requirements ¹can be broken down into two broad categories — commercial and residential. The application process for each category is different, so let’s break down what it takes to obtain each type of contractor’s license from the Arkansas Contractors Licensing Board.²

Arkansas Commercial License:³

A commercial construction project in Arkansas covers any type of building or property that’s not considered a single-family residence. So whether you’re building a small office or a large building complex, you fall into this category.

You will need an Arkansas commercial contractors license before you can work on any project that’s for $50,000 or more. This includes any costs associated with the project, such as hiring labor, materials, and other expenses. 

If you’re looking to get an Arkansas commercial contractors license, you must submit:

1. A completed Arkansas commercial license application form⁴
2. The $100 fee
3. Three (3) written references (make sure they’re less than 90 days old)
4. A copy of your Arkansas Business and Law exam with a passing score
5. Proof of a fully executed $10,000 contractor’s bond
6. Financial statements

Make sure you carefully read the Arkansas commercial application form⁵ to see if there are any other rules  you may need to comply with to get your license.

Arkansas Residential Builders License:⁶
A residential builders license is needed to build a single-family home if the cost of the project is over $2,000, including labor and material. A residential builders license also allows you to make major structural changes or add an extension to a single-family residence.

To obtain a residential builders license, you must submit:

1. A completed Arkansas residential builders application form⁷
2. The $100 fee
3. Three (3) written references (make sure they’re less than 90 days old)
4. A copy of your Arkansas Business and Law exam with a passing score
5. Financial statements

By now, you probably have a good idea of the type of contractors license you need to apply for, but you’ve also noticed that you may need to pass the Arkansas Business and Law exam in order to get it. What exactly is it, and how can you prepare for it?

Taking the Arkansas Contractors License Exam 

The Arkansas contractors license exam — named the Arkansas Business and Law exam — is a national test that’s used to determine if you’re ready to have a commercial or residential contractors license. The exam is open-book with 50 multiple-choice questions and a 2-hour time limit.

To register and prepare for your exam, use the following steps:

1. Go to the P.S.I. testing website⁸ to register for the Business and Law exam. You can also register by calling 1-855-257-1620.
2. Once registered, find your nearest test center and select an exam date and time. 
3. You will then be instructed to pay the $84 exam fee. 
4. To prepare, order the test study book “Arkansas Contractors Guide to Business, Law, and Project Management” online⁹ or by calling 623-587-9519. You’ll be allowed to bring a copy of this study guide to the exam, so don’t skip this important step. 

On the day of your exam, you must arrive at the P.S.I. test center 30 minutes prior to your scheduled appointment. Bring one official government-issued photo identification, such as a driver’s license or passport, and your Arkansas Contractors Guide to Business, Law, and Project Management.

For more information about how to register and prepare for the Arkansas Business and Law exam, check out this website.¹⁰  

Do I Need a License for Smaller Projects? 

You can take on projects as a handyman in Arkansas without a license if the cost of the work is less than $2,000. Once you get above the $2,000 amount, you’ll need the appropriate license for the type of work¹¹ you plan to do. Even if you’re doing smaller jobs such as painting, windows, or flooring, you may need a home improvement license.¹² And for roofing, roof decks, or roofing sheet metal jobs, you’ll likely need to complete a residential roofer registration form.¹³

Speak with the Arkansas Licensing Board¹⁴ if you have a question about which license is right for you.

Do I Need a Local Contractors License? 

Generally speaking, contractor licensing happens at the state level. However, you may need to obtain permits and other certification, depending on the city or town where you’re working. It’s always a good idea to check with the local authorities to find out exactly what rules may apply.

Got Questions? We’ve Got You.

Licenses, registrations, and insurance are key steps to setting up your contractor business. But being licensed and insured is often just the start, and we want you to know that we’ll be with you every step of the way. When you visit our online Resource Center, you’ll find all types of useful articles, tools, and tips. Here are just a few that provide helpful information for contractors:

General Contractor Insurance: Everything You Need To Know

Starting a Handyman Business

FREE Contractor Invoice Template

If you still have questions about how to get an Arkansas contractors license, we encourage you to speak with your state or local licensing board officials or legal professionals who can assist you.

References:

1. https://labor.arkansas.gov/licensing/arkansas-contractors-licensing-board/apply-for-contractors-license-registration/ ↩︎
2. https://labor.arkansas.gov/licensing/arkansas-contractors-licensing-board/apply-for-contractors-license-registration/ ↩︎
3. https://labor.arkansas.gov/licensing/arkansas-contractors-licensing-board/apply-for-contractors-license-registration/ ↩︎
4. https://labor.arkansas.gov/wp-content/uploads/NEW-Comm-App-1-2025.pdf ↩︎
5. https://labor.arkansas.gov/wp-content/uploads/NEW-Comm-App-1-2025.pdf ↩︎
6. https://labor.arkansas.gov/licensing/arkansas-contractors-licensing-board/apply-for-contractors-license-registration/ ↩︎
7. https://labor.arkansas.gov/wp-content/uploads/NEW-Resid-Bldr-App-1-2025.pdf ↩︎
8. https://test-takers.psiexams.com/arconst/test/JGLW6K6P ↩︎
9. https://contractortrainingcenter.com/products/basic-nascla-contractors-guide?utm_campaign=*LP%20-%20NonTM%20-%20DSA%20-%20All%20Pages&utm_content=All%20Pages&gad_source=1&gbraid=0AAAAADmKtJsEMDAgDMoVH-mLcaKxlyCi0&gclid=Cj0KCQjw8cHABhC-ARIsAJnY12zldf4YZaDiCg8QouXOc0WupNwI3M9yNxsiUvSd3dB12snIrLIUCfkaAvohEALw_wcB ↩︎
10. https://www.labor.arkansas.gov/wp-content/uploads/Testing-Info_0622.pdf ↩︎
11. https://labor.arkansas.gov/licensing/arkansas-contractors-licensing-board/apply-for-contractors-license-registration/ ↩︎
12. https://labor.arkansas.gov/wp-content/uploads/NEW-Home-Imp-App-1-2025.pdf ↩︎
13. https://labor.arkansas.gov/wp-content/uploads/01_01_24-Residential-Roofer_New-App.pdf ↩︎
14. https://labor.arkansas.gov/licensing/ ↩︎