Thinking about starting a handyman or general contractor business in North Carolina? Before you pick up your tools, you’ll need to understand the licensing rules. North Carolina has some unique requirements — especially if you’re working on larger projects. And this helpful guide will walk you through the steps for how to get a contractor’s license in North Carolina.
Do I Need a North Carolina Contractor’s License?
Yes, but it depends on the size of the job.
If a project is valued at over $40,000, you must obtain a license from the North Carolina Licensing Board for General Contractors (NCLBGC). This applies whether you’re bidding, building, or managing the job. So if you plan to work as a general contractor in North Carolina, getting licensed isn’t optional — it’s the law.
If you’re doing smaller projects under $40,000, you may not need a license. That means many handymen can operate without a North Carolina handyman license, as long as they stay under that amount threshold. But if you’re about to cross it, you’ll need to follow the full licensing process.
What Are the Basic Requirements?
To qualify for a North Carolina contractor’s license, you must:
- Be at least 18 years old.
- Demonstrate good moral character.
- Meet certain financial requirements based on the limitation of license you want .
- Pass an exam (unless eligible for a waiver).
What Type of License Do I Need?
North Carolina offers three general contractor license classifications, based on the value of the projects you plan to take on:
- Limited License: Projects up to $750,000.
- Intermediate License: Projects up to $1.5 million.
- Unlimited License: No cap on project value.
Each license comes with specific financial requirements. You’ll need to either meet the minimum working capital threshold or submit a surety bond.
Limited License:
- Net worth of at least $80,000, or $17,000 in working capital.
- Or obtain a $175,000 surety bond.
Intermediate License:
- $75,000 in working capital.
- Or obtain a $500,000 surety bond.
Unlimited License:
- $150,000 in working capital.
- Or obtain a $1,000,000 surety bond.
How Do I Apply for a North Carolina Contractor’s License?
Once you’ve chosen your license type, you must:
- Register your business: You must be a registered legal entity with the North Carolina Secretary of State. We also encourage you to speak with local legal and tax professionals when registering your business.
- Designate a qualifier: This is the person (often you) who will take the exam and be legally responsible for the license.
- Submit financial documentation: You’ll need either an agreed-upon procedures report or an audited financial statement from a CPA — or a qualifying surety bond.
- Complete the application: Apply online or by mail using the forms provided at nclbgc.org. Be sure to apply in the legal name you’ll be contracting under.
Send the application and required documents to:
North Carolina Licensing Board for General Contractors
5400 Creedmoor Rd.
Raleigh, NC 27612
Have questions? Call the North Carolina Licensing Board for General Contractors at 919-571-4183 or email [email protected]
Do I Need to Take an Exam?
In most cases, yes.
Once your application is reviewed and approved, the licensing board will send you an eligibility letter to schedule your exam through PSI Exam Services. You must pass an exam related to your trade classification, as well as the NC Business and Law exam.
Can I Get an Exam Waiver?
The licensing board doesn’t offer full reciprocity with other states, but exam waivers are available for licensed contractors in Alabama, Florida, Georgia, Louisiana, Mississippi, South Carolina, and Tennessee.
To qualify, you must submit:
- A completed N.C. application.
- An Examination Waiver form signed by the licensing board in the state you are currently licensed.
- Proof that you’ve passed an equivalent exam in that state.
Even with a waiver, you must still pass the NC Business and Law exam.
What About Specialty Licenses?
If you’re an electrician or plumber, you’ll need to apply through a different licensing board.
Electricians
Apply through the N.C. State Board of Examiners of Electrical Contractors website or call 919-733-9042.
Plumbers
Apply through the N.C. State Board of Examiners of Plumbing, Heating, and Fire Sprinkler Contractors website or call 919-875-3612.
Once I’m Licensed, What Comes Next?
Once you’ve secured your North Carolina contractor’s license, there are a few key things to stay on top of:
- Renew your license annually with the North Carolina Licensing Board for General Contractors (NCLBGC).
- Complete 8 hours of continuing education each year.
- 2 hours must come from a mandatory Board-approved course.
- The remaining 6 hours can be chosen from approved providers.
- Renew the license by November 30 each year to avoid delays or penalties.
Do I Need Business Insurance?
You don’t need insurance to obtain a North Carolina contractor’s license. However, if you have employees, N.C. state law requires you to carry workers’ compensation insurance.
Even if you don’t have employees, carrying workers’ comp and general liability insurance is a smart investment. It can protect your business financially from claims related to third-party accidents, 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 Build Your Future?
Getting licensed is an important first step toward building a legal, credible handyman, or general contracting business in North Carolina.
Want more contractor tips? Visit our Resource Center where you’ll find all types of useful articles and tools to grow your business with confidence.
Here are just a few articles that provide helpful information for contractors:
General Contractor Insurance: Everything You Need To Know
FREE Contractor Invoice Template
How to Get a North Carolina Business License
If you still have questions about how to get a contractor’s license in North Carolina, we encourage you to speak with local legal and tax professionals who can assist you.
Applying for a NC Contractor’s License?
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