How to get a contractor license in Minnesota
Minnesota requires a license from the Department of Labor and Industry for anyone who contracts directly with homeowners on one- to four-unit residences in more than one special skill area. Single-trade subcontractors are exempt, with one pointed exception: residential roofers need the license even as a single skill. Businesses grossing under $15,000 a year can file for a certificate of exemption instead. The exam is real, and instead of a bond, licensees pay into the state's Contractor Recovery Fund.
Licensing authority
Minnesota Department of Labor and Industry: https://www.dli.mn.gov
When a license is required
A residential building contractor or remodeler license is required when you contract directly with homeowners and provide work in two or more special skill areas on one- to four-unit residential property. Contractors with gross annual receipts under $15,000 from residential work can hold a certificate of exemption instead. Residential roofing requires the license even as a single skill.
License classes in Minnesota
Residential building contractor
For new construction and broad residential contracting across multiple skill areas. The standard license for home builders.
Residential remodeler
For improvement work on existing residences across multiple skill areas. The common license for remodeling companies.
Residential roofer
Required for roofing contractors even though roofing is a single skill area, a rule written after storm-chasing problems. Carries the same exam and fund obligations.
What you need before you apply
- A designated qualifying person who passes the licensing exam: 110 questions, 70 percent to pass, 5.5 hours
- Payment into the Contractor Recovery Fund, scaled to gross receipts, in place of a bond
- General liability insurance and workers compensation coverage
- 14 hours of approved continuing education each two-year cycle, including energy code and business management hours
- A registered business entity in Minnesota
- License application and fee to the Department of Labor and Industry
How to get licensed in Minnesota
- Confirm you need the license. Two or more skill areas plus direct homeowner contracts means licensed. One skill area means exempt, unless the skill is roofing. Under $15,000 a year gross means you can file the exemption certificate instead.
- Pass the exam. The qualifying person sits a 110-question, 5.5-hour exam needing 70 percent. There is no education prerequisite to sit it, but unprepared applicants find that out the hard way.
- Fund and insure. Pay the Contractor Recovery Fund amount for your receipts tier and put liability and workers compensation coverage in place. Minnesota uses the fund, not a bond, to protect homeowners.
- Apply to DLI. Submit the application with exam results, insurance, and fees. The license covers the business through its qualifying person.
- Keep the education current. Renewal requires 14 hours of continuing education per two-year cycle, including at least one hour on the energy code and one on business management. Track it or the renewal stalls.
Reciprocity with other states
Minnesota does not have contractor license reciprocity with other states; the exam and application apply to everyone, though experience from anywhere prepares you for it. Trade licenses like electrical, which run through their own Minnesota boards, maintain separate policies on out-of-state credentials.
Working without a license
Contracting without a required license is a misdemeanor, and DLI backs it with administrative penalties and enforcement orders. The practical hit is the Contractor Recovery Fund: homeowners can only claim against it for licensed contractors, and unlicensed operators hand clients an easy legal defense against paying. Confirm current fund amounts and exemption rules with DLI.
Frequently asked questions
Do subcontractors need a license in Minnesota?
Usually not. The license targets contractors who deal directly with homeowners in two or more skill areas, so a sub providing one skill, like concrete or drywall, is exempt. The exception is residential roofing, which requires a license even as a single skill.
What is the $15,000 exemption in Minnesota?
Contractors whose gross annual receipts from residential work are under $15,000 can file for a certificate of exemption instead of a license. Gross means gross: the total is not reduced by materials or expenses. Cross the line mid-year and the license requirement kicks in.
How hard is the Minnesota contractor exam?
It is 110 questions over 5.5 hours with a 70 percent passing score, covering code, law, and business practices. There is no required prep course, which lulls people; the code content punishes guessing. Serious study or a prep course is the difference for most first-time passers.
What is the Contractor Recovery Fund?
It is Minnesota's substitute for a license bond: licensees pay in based on gross receipts, and the fund compensates homeowners for losses caused by licensed contractors' fraud or failure to perform. Claims only exist against licensed contractors. It is both consumer protection and a competitive argument for being licensed.
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