Want to become a licensed contractor, handyman, or home renovator in Michigan, but you’re not sure how to get started?
There’s no other way to say it: getting your contractor’s license in Michigan is a bit of a complicated process. Or at least it may seem that way. From pre-licensure courses to figuring out what license you should apply for, there are a lot of moving parts to this process.
Luckily, we did all the digging around for you and created this guide to help streamline the process. In this guide, we tell you everything you need to know about becoming a licensed contractor in the state of Michigan. So you can spend less time figuring out what license to apply for or what pre-licensure courses you need to take and more time and more time growing your business.
Ready to get started? Let’s jump in.
Everything you need to know about getting your contractor’s license in Michigan
Before we dive into the details on how to apply for your contractor’s license, let’s talk about a few things you need to be aware of beforehand.
In Michigan, the license you apply for will entirely depend on the scope of the projects you plan to take on as well as the total value of those projects. Not to add to the complexity, but depending on the criteria, your license may be handled at the state or the local level. We’ll discuss those details in more depth later on.
Below are a few other essential things to note:
- All contractors will have to register with the Michigan Department of the Treasury
- Any project over $600 requires a residential builder’s license or a maintenance and alteration contractor’s license. These licenses must be obtained through the Michigan Licensing and Regulatory Affairs department and are regulated at the state level.
- There are pre-licensure courses that all applicants must take, such as The Michigan Residential Code, Contracts, Liability, and Risk Management, Marketing and Sales, and more.
Let’s take a look at the types of contractor licenses.
What are the types of contractor’s licenses in Michigan?
There are three types of general contractor’s licenses you can apply for. Depending on the license you want to pursue will determine the process you must follow.
Michigan Builders License: This license is for contractors who wish to do any sort of contracting work on either a residential or a combination of residential and commercial buildings. This license covers demolition, home improvement, replacement, alterations, and repairs.
Michigan Maintenance and Alteration Contractors License: The following trades are covered under this license:
- Insulation Work
- Painting and Decorating
- Screen and Storm Sash
- Tile and Marble
- House Wrecking
- Swimming Pools
- Basement Waterproofing
Whether you choose to be a residential or maintenance and alteration contractor, you’ll fill out the same form. For more details on the details between the two types of licenses, check out the Michigan Department of Licensing and Regulatory Affairs Licenses and Requirements website.
Michigan Commercial Builders License: This license is different from the other two in that the state does not govern it. If you want to work on school buildings, offices, and other commercial buildings, this license will go through your municipality.
What are the licensure requirements?
Now that we’ve covered the types of licenses you can apply for, let’s discuss the requirements. Depending on the license you want to pursue, the application requirements may vary, but generally, all applicants need to meet the following:
- You must be 18+ years old
- You must have a valid Michigan driver’s license
- You have to complete 60 hours of pre-licensure courses
- You must pass your residential or maintenance and alteration contractor exam
- You have to pay all application and license fees
Approved pre-licensure courses
As I mentioned above, one of the requirements for licensure is to take 60 hours of approved courses. There are several you can take that range from marketing and sales to MIOSHA Construction Safety Standards. To view all approved courses, check out the Michigan Department of Licensing and Regulatory Affairs website or call them at 517-373-8068.
Take and pass the contractor’s licensing exam
Part of the licensing application is to pass the contractor exam. In Michigan, all contractor exams are issued through PSI Exams. The exam varies in cost based on how many sections you need to take as required by your license criteria. You’ll pay for this at the time of the exam.
Pay the associated fees
Lastly, you must pay the fee of $195—either in the form of a check or money order—with your application. If you’re an Armed Forces Veteran, you may be eligible to have this fee waived at the time of the exam.
Renewing your license
You can easily renew your contractor’s license online. This guide from the Michigan Department of Licensing and Regulatory Affairs walks you through the online renewal process.
Renewal fees may vary based on your type of license.
Register your business with the Michigan Department of Treasury and get insured
A crucial step in the contractor’s license application process is to register your business and to get insured. All applicants must register their business through the Michigan Department of Treasury. Luckily, this process can be done online, which is a huge time-saver. If you have any questions about this process, visit their website or call (517) 636-4660.
Getting insured is one of the most responsible things you can do for your business. All private employers in Michigan are required to obtain Workers Compensation. For a detailed breakdown of the exceptions and regulations, check out this resource from the Michigan Department of Licensing and Regulatory Affairs, Workers Compensation Agency.
Do you have questions about contractor’s insurance in Michigan? Our team can help you figure out what you need to make sure you’re covered and legal. You can also check out our guide on How to Start a Handyman Business for additional advice.
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