Minnesota Contractor License Requirements: Complete 2026 Guide

Minnesota takes residential contractor licensing seriously. The Minnesota Department of Labor and Industry (DLI) oversees all licensing for residential building contractors, remodelers, and roofers through its Construction Codes and Licensing Division. If you contract directly with a homeowner to perform work involving two or more specialty skill areas on a residential property (one to four dwelling units), you need a license.

Minnesota's system is unique in several ways. There is no general contractor license for commercial work — commercial contractors register rather than obtain a license. The state does not require experience or education prerequisites to sit for the licensing exam. And there is no reciprocity with any other state, meaning every contractor must pass Minnesota's own exam regardless of credentials held elsewhere.

This guide covers everything you need to know: license types, exam requirements, fees, insurance, renewal, and penalties for unlicensed work. All information has been verified against official DLI sources and Minnesota Statutes Chapter 326B.

Types of Contractor Licenses in Minnesota

Minnesota's DLI issues three categories of residential contractor licenses. Each corresponds to a specific scope of work and requires passing a designated qualifying exam.

Residential Building Contractor (BC)

The broadest residential license. A Residential Building Contractor can perform all types of residential construction work, including new home construction, additions, detached garages, and remodeling of existing structures. The qualifying person must hold a Qualifying Builder (QB) designation.

Residential Remodeler (CR)

A Residential Remodeler is limited to work on existing structures only. You cannot build new homes or detached garages with this license. The qualifying person must hold a Qualifying Remodeler (QC) designation. This license is appropriate for contractors who focus exclusively on renovations, repairs, and improvements to existing buildings.

Residential Roofer (RR)

The Residential Roofer license is restricted to roofing work exclusively on residential properties of one to four dwelling units. The qualifying person must hold a Qualifying Roofer (QR) designation. If you perform roofing and other construction work, you need a Building Contractor or Remodeler license instead.

Construction Contractor Registration

Minnesota also has a separate Construction Contractor Registration program. This is not a license — it is a registration required for contractors who provide only one specialty skill for residential projects and for all commercial construction projects. Registration is free and does not authorize you to represent yourself as a licensed contractor. Registered contractors cannot enter into contracts to perform work involving two or more specialty areas on residential properties.

Who Needs a License?

Under Minnesota Statutes Chapter 326B, you need a residential contractor license if you contract directly with a homeowner and your work involves two or more of the eight recognized specialty skill areas:

1. Excavation
2. Masonry and concrete
3. Carpentry
4. Interior finishing
5. Exterior finishing
6. Drywall and plaster
7. Residential roofing
8. General installation specialties

Exemptions

You do not need a residential contractor license if you are:

• A subcontractor — working under a licensed contractor rather than directly with the homeowner
• A single-trade contractor — performing work in only one specialty area (but you must register as a construction contractor)
• A commercial contractor — performing work on commercial properties (registration required, not licensing)
• A property owner — doing work on your own property
• An employee — working for a licensed contractor
• A landlord — maintaining your own rental properties
• A material supplier — selling materials without performing installation
• A contractor with gross annual receipts under $15,000 — if you hold a Certificate of Exemption from DLI

Solar Contractors

As of July 1, 2023, companies that contract with residential homeowners to install solar photovoltaic (PV) systems must be licensed as a residential building contractor or remodeler. This applies to the entity contracting directly with the homeowner, not to subcontractors performing the electrical work under a licensed electrician.

Licensing Requirements

Minnesota has a comparatively straightforward set of requirements. Notably, there are no experience or education prerequisites to take the licensing exam — anyone can apply to sit for the test.

Qualifying Person Requirement

Every licensed entity must designate a qualifying person who:

• Holds an ownership or management position in the business
• Passes the appropriate DLI licensing exam (QB, QC, or QR)
• Receives a Q number that is valid for two years
• Is responsible for the quality and code compliance of the company's work

The qualifying person is the individual whose competence is being tested. The license is issued to the business entity, not the individual, but the business cannot hold a license without a qualifying person with an active Q registration.

Business Registration

Your business must be registered with the Minnesota Secretary of State. The business name on your license application must exactly match the name filed with the Secretary of State.

Background Disclosure

All applicants must complete a Background Disclosure Form and a Bureau of Criminal Apprehension (BCA) Criminal Background Check form. DLI reviews criminal history as part of the application process.

Insurance

You must have general liability insurance and workers' compensation insurance (detailed in the Insurance and Bond Requirements section below).

Application Process

Minnesota processes contractor license applications through iMS, the DLI's online licensing management system. Here is the step-by-step process:

1. Pass the qualifying exam. Your designated qualifying person must first pass the appropriate exam (QB, QC, or QR) and receive their Q number.
2. Register your business. File with the Minnesota Secretary of State if you have not already done so.
3. Obtain insurance. Secure general liability insurance meeting DLI minimums and workers' compensation insurance (or an approved exemption). Your insurance certificates must list the business name exactly as filed with the Secretary of State and designate DLI as a certificate holder.
4. Complete the application forms. Fill out the license application, Background Disclosure Form, and BCA Criminal Background Check form.
5. Submit through iMS. Log in to iMS and submit your application with all required documents.
6. Pay fees. Pay the license fee ($180) and the Contractor Recovery Fund fee (varies by gross annual receipts).
7. DLI review. DLI reviews your application, verifies insurance, and conducts the background check.
8. License issued. Once approved, your license is issued and you can begin contracting with homeowners.

Contact for questions: Email dli.license@state.mn.us or call 651-284-5034.

Examination Requirements

The DLI administers its own licensing exams directly — they are not outsourced to PSI, Prometric, or any third-party provider. There are no experience or education prerequisites to take the exam.

Exam Details

Exam Types

• Qualifying Builder (QB) — required for a Residential Building Contractor (BC) license
• Qualifying Remodeler (QC) — required for a Residential Remodeler (CR) license
• Qualifying Roofer (QR) — required for a Residential Roofer (RR) license

Exam Locations and Scheduling

Exams are administered at DLI's St. Paul offices on Tuesdays, Wednesdays, and Thursdays (except weeks containing a state holiday). Exams are also offered at outstate Minnesota locations periodically.

To schedule an exam, submit your application through iMS. Once approved, you will receive an email with instructions to schedule your exam date.

Exam questions: Email DLI.Exam@state.mn.us or call 651-284-5034.

Study Resources

The exam is open-book with DLI-provided reference materials, but preparation is still important. The two key references are:

• Minnesota State Residential Code, 2020 Edition — covers the building code provisions that make up roughly 60% of the exam
• DLI Reference Manual for Residential Building Contractor and Remodeler License Exam — covers statutes, rules, and business requirements

Third-party exam prep courses are available from providers such as MN Contractor Exam Prep and LicenseToBuild.com.

License Fees and Costs

Minnesota's licensing fees consist of a base license fee plus a Contractor Recovery Fund contribution that scales with your gross annual receipts. The total initial cost ranges from approximately $500 to $700 depending on your revenue tier.

Fee Schedule

Note: The license fee and Recovery Fund fee apply to both initial applications and biennial renewals. Verify current fee amounts on the DLI fee schedule.

Total Estimated Startup Costs

Insurance and Bond Requirements

General Liability Insurance

All licensed residential contractors must carry general liability insurance with the following minimum coverage:

• $100,000 per occurrence for bodily injury
• $300,000 aggregate for bodily injury
• $25,000 per occurrence for property damage

Your insurance certificate must:

• List the business name exactly as filed with the Minnesota Secretary of State
• Be produced by a licensed insurance agent and signed by the agent
• Designate DLI as a certificate holder

Workers' Compensation Insurance

Minnesota law requires workers' compensation insurance for any business with employees. You must provide DLI with proof of workers' compensation coverage or an approved exemption if you have no employees. Submit a workers' compensation compliance form as part of your application.

Surety Bond Requirements

Minnesota does not require a general surety bond for residential building contractors or remodelers at the state level. However, bonds are required for certain specialty trades:

• Mechanical contractors: $25,000 bond required for gas, heating, ventilation, cooling, AC, fuel burning, or refrigeration work
• Electrical contractors: $25,000 bond
• Residential roofers: $15,000 bond
• Sign contractors: Bond required per DLI requirements

Additionally, many cities and counties have their own bonding requirements. Check with local jurisdictions before beginning work.

Contractor Recovery Fund

The Contractor Recovery Fund was established by the Minnesota Legislature in 1994 to protect homeowners. Licensed contractors pay into the fund as part of their license fees. Homeowners who suffer direct, out-of-pocket losses due to a licensed contractor's fraudulent, deceptive, or dishonest practices can apply for compensation of up to $100,000 per claim. The fund only covers losses caused by licensed contractors — if you hire an unlicensed contractor, you have no recovery through this fund.

License Renewal and Continuing Education

Renewal Cycle

Minnesota residential contractor licenses are on a two-year (biennial) renewal cycle ending on March 31. Some licenses expire in odd-numbered years, others in even-numbered years, depending on when you were originally licensed. DLI recommends submitting renewals by March 1 to avoid processing delays.

Continuing Education Requirements

The qualifying person on each license must complete 14 hours of DLI-approved continuing education during each two-year renewal period. The 14 hours must include:

• 1 hour of instruction related to energy codes or energy conservation measures
• 1 hour of business management strategies applicable to residential construction
• 12 hours of elective topics related to residential construction, workforce safety, federal/state regulations, or the business of residential construction

Courses must be approved by DLI. You can find approved courses and providers through the DLI continuing education page. Popular approved providers include PDH Academy, TradesmanCE, and Kaplan.

Renewal Fees

Renewal fees are the same as initial license fees: $180 base fee plus the Contractor Recovery Fund contribution based on gross annual receipts ($320, $420, or $520).

Late Renewal and Reinstatement

There is no grace period for expired licenses. If your renewal is not completed by March 31:

• A $90 late fee is assessed
• You may not perform licensed work while your license is expired
• If your license has been expired, you must submit a new application, pay the license fee, Recovery Fund fee, late penalty, and a $25 reinstatement administrative charge
• If the qualifying person's Q registration has been inactive for more than two years, they must retake the licensing exam

For reinstatement details, see the DLI reinstatement page.

Reciprocity with Other States

Minnesota has no reciprocity agreements with any other state. Every applicant must pass the Minnesota DLI exam regardless of licenses held in other jurisdictions.

Minnesota also does not accept the NASCLA Accredited Examination. The National Association of State Contractors Licensing Agencies (NASCLA) exam is accepted in states like Alabama, Arizona, Georgia, Louisiana, and others, but Minnesota is not among them. If you hold a NASCLA certification or a contractor license from another state, you will still need to take and pass Minnesota's qualifying exam.

The upside of this policy is that Minnesota's exam has no experience or education prerequisites, so out-of-state contractors can apply immediately to take the exam without needing to document years of experience.

How to Verify a Contractor's License

Minnesota provides a free online tool to verify any contractor's license status.

Online Lookup

Visit the DLI License and Registration Lookup page. You can also search directly through iMS (the licensing management system) by clicking "Continue as Guest" — no account is required.

You can search by:

• License number
• Business name
• Individual name

Downloadable Database

DLI also provides a downloadable spreadsheet of all licensed businesses and individuals, updated nightly. This is useful if you need to verify multiple contractors or perform bulk lookups.

What to Check

When verifying a contractor, confirm:

• The license is active (not expired, suspended, or revoked)
• The license type matches the work being performed (BC for new construction, CR for remodeling only, RR for roofing only)
• The business name matches what appears on your contract
• The qualifying person's Q registration is current

Contact: For verification assistance, call 651-284-5034 or email dli.license@state.mn.us.

Penalties for Working Without a License

Minnesota enforces contractor licensing through both civil and criminal penalties under Minnesota Statutes Chapter 326B.

Civil Penalties

• Up to $10,000 per violation under Minnesota Statutes § 326B.082, Subd. 7
• Each day of a continuing violation may constitute a separate offense
• DLI can issue stop-work orders without waiting for a consumer complaint

Criminal Penalties

• Violating an order of the commissioner is a gross misdemeanor under Minnesota Statutes § 326B.845
• Managers, officers, and directors of an entity that violates a commissioner's order can be held personally liable

Loss of Lien Rights

An unlicensed person who knowingly violates the licensing requirements has no right to claim a mechanic's lien under Minnesota Statutes § 514.01. The lien is void. This means that if a homeowner refuses to pay for your work, you cannot file a lien against their property to recover payment.

No Recovery Fund Protection

The Contractor Recovery Fund only applies to losses caused by licensed contractors. If you are unlicensed, your customers have no protection through this fund, which can affect your ability to win contracts.

Additional Consequences

• Failure to pay penalties can result in DLI revoking, suspending, or denying any and all licenses, permits, certificates, and registrations issued by the department
• DLI publishes enforcement actions publicly, which can damage your professional reputation
• Filing a complaint is straightforward for homeowners through the DLI complaint page

Specialty Trade Licensing

In addition to the residential contractor licenses, Minnesota requires separate licenses or registrations for several specialty trades. These are all administered by DLI but have their own requirements:

Important: A residential building contractor license does not authorize you to perform electrical, plumbing, or mechanical work. Those trades require their own separate licenses even when performed as part of a larger residential project. Plumbing, electrical, and gas piping work each require separate licenses under Minnesota law.

Local Licensing Requirements

Many Minnesota cities and counties have their own contractor licensing requirements that supplement the state license. Your state license does not exempt you from local requirements. Cities with notable local licensing programs include:

• Saint Paul — requires separate city contractor licenses with local bonding and insurance requirements
• Minneapolis — has its own contractor registration and licensing requirements through the Development Services department
• Duluth — requires local contractor registration
• St. Cloud — has local contractor licensing and mechanical exam requirements
• Bloomington — requires local contractor licensing and testing

Always verify local requirements with the city or county where you plan to work before starting a project.

Frequently Asked Questions

Do I need a license to be a general contractor in Minnesota?

For residential work involving two or more specialty skills, yes — you need a Residential Building Contractor (BC) license. For commercial general contracting, there is no state license requirement, but you must register through the Construction Contractor Registration program.

How long does it take to get a Minnesota contractor license?

The timeline depends primarily on scheduling your exam. Once you pass the exam and submit a complete application with all required documents and insurance certificates, DLI typically processes applications within a few weeks. Plan for 4–8 weeks from exam to license in hand.

Do I need experience to get a contractor license in Minnesota?

No. Minnesota has no experience or education prerequisites to take the qualifying exam. Anyone can apply to sit for the test. However, the exam covers the Minnesota Residential Building Code and construction statutes extensively, so practical knowledge of construction is beneficial.

Can I use my contractor license from another state in Minnesota?

No. Minnesota has no reciprocity with any other state and does not accept the NASCLA exam. You must pass the Minnesota DLI exam regardless of any out-of-state credentials.

What is the Contractor Recovery Fund?

The Contractor Recovery Fund is a state-administered fund that compensates homeowners who suffer losses due to a licensed contractor's fraudulent or deceptive practices. Licensed contractors pay into the fund as part of their license fees. Homeowners can claim up to $100,000 per incident. The fund only covers losses from licensed contractors. Contact: contractor.recoveryfund@state.mn.us or 651-284-5057.

What happens if my license expires?

There is no grace period. Once your license expires on March 31, you cannot perform licensed work. You will need to go through the reinstatement process, which includes paying the renewal fee, late penalty ($90), and a $25 administrative charge. If your qualifying person's Q registration has been inactive for more than two years, they must retake the exam.

Conclusion

Minnesota's contractor licensing system is administered entirely through the Department of Labor and Industry. The process is straightforward compared to many states: pass the exam, get your insurance, submit your application, and pay your fees. No experience requirements, no financial statements, no net worth minimums.

The key things to remember: designate a qualifying person with an active Q registration, maintain your general liability and workers' compensation insurance at all times, complete your 14 hours of continuing education before each March 31 renewal deadline, and check local requirements for any city or county where you plan to work.

For the most current information, visit the DLI Residential Contractor Licensing page or contact them directly at 651-284-5034 or dli.license@state.mn.us.