Licensing Guides
State Contractor License: How to Become a General Contractor in Illinois
Contractor, IL
Table of Contents
Why Do You Need a Contractor License in Illinois?
How Can You Get a Contractor License in Illinois?
Types of Contractor Licenses in Illinois
What Are the Requirements of an Illinois Contractor License?
How Long Does It Take to Get a Contractor License in Illinois?
How Much Does It Cost to Get a Contractor License in Illinois?
Illinois Contractor License Training Programs and Schools
Does Illinois Reciprocate Contractor Licenses?
Do I Need to Renew my Contractor License in Illinois?
Are There Any Penalties for Contracting Without a License in Illinois?
We all need a place to live and work, and those buildings require upkeep and repair. They are often the biggest investments we make in our lives and keeping them in good condition is essential. We count on professionals to know how to fix damage to or wear and tear on our homes and businesses. General contractors are typically the experts we rely on to help us with these repairs, and we need these men and women to know what they’re doing.
Many states require contractors to be licensed. Others simply require solid insurance to back up the essential work they perform. There are 520,900 construction managers and 1,599,800 construction laborers and helpers nationwide according to the Bureau of Labor Statistics (BLS). Illinois employs 15,930 managers and 29,930 laborers and helpers. The national number for managers is projected to grow 9% from 2023 to 2033 and for laborers and helpers that number is 8%. In Illinois, according to CareerOneStop, the U.S. Department of Labor’s job search website, the projected growth rate for laborers is lower than the national number at 5%, and for managers it’s 4%. If you’re thinking about becoming a contractor or you want a job in the field, you need to know the licensing requirements in your state or local municipality. This guide will help you determine what you need before you get started.
Why Do You Need a Contractor License in Illinois?
A contractor license is necessary to perform most work legally in Illinois. General contractor licenses are issued at the city or county level rather than the state level. Illinois only licenses roofing contractors and plumbing contractors at the state level. These licenses are issued by the Illinois Department of Financial and Professional Regulation (IDFPR).
In Chicago, a General Contractor license is required to perform most types of building construction, alteration, repair, and demolition work within the City of Chicago. General contractor licenses are issued by the Chicago Department of Buildings. Subcontractors do not need a license as long as they work under a licensed contractor.
In Aurora, you need a General Contractor license to install, supervise, maintain, or repair any work for which a building permit is required by the city code. Aurora licenses are issued by the Division of Buildings and Permits.
Contractors must verify license requirements in the locality in which they intend to conduct business.
How Can You Get a Contractor License in Illinois?
In Chicago, the process is spelled out on the city website. The process for each classification is roughly the same.
You must be at least 18 years of age. You must have either a Social Security number or an individual taxpayer identification number.
There are no work experience requirements, but you must pass the contractor licensing exam via Continental Testing Services.
You will need to specify your business entity, such as LLC, sole proprietor, or partnership and include all members in the business structure. You also need to provide proof of general liability insurance in the amount for your license classification and workers’ compensation insurance. You must submit a certificate of insurance specifying the insurance provider has a credit rating of B+ or higher.
Finally, you need to submit the license application and pay the license fee.
The licensing process is similar in Aurora, and you can find more information on the city’s website.
You must be at least 18 years of age. You must have either a Social Security number or an individual taxpayer identification number.
There are no work experience or testing requirements for general contractors in Aurora. Only HVAC and electrical contractors need to pass a licensing exam.
You will need to specify your business type, such as LLC, sole proprietor, or partnership. You also need to provide proof of general liability insurance and workers’ compensation insurance.
Finally, you need to submit the license application and pay the license fee.
Types of Contractor Licenses in Illinois
There are five classifications for General Contractors in Chicago as well as trade-specific licenses for plumbers and roofers.
Class A General Contractor
Class B General Contractor
Class C General Contractor
Class D General Contractor
Class E General Contractor
The Class A General Contractor license allows the holder to perform building construction, alteration, repair, and demolition with unlimited project value.
The Class B General Contractor license allows the holder to perform building construction, alteration, repair, and demolition on projects up to $10 million.
The Class C General Contractor license allows the holder to perform building construction, alteration, repair, and demolition on projects up to $5 million.
The Class D General Contractor license allows the holder to perform building construction, alteration, repair, and demolition on projects up to $2 million.
The Class E General Contractor license allows the holder to perform building construction, alteration, repair, and demolition on projects up to $500,000.
Aurora
There is only one classification for a general contractor license in Aurora: General Contractor license.
The General Contractor license allows the holder to install, supervise, maintain, or repair any work for which a permit is required by the city code.
Getting a Chicago or Aurora general contractor license
The bottom line is that you need to be licensed as a general contractor to do any kind of construction, repair, or maintenance work of any value that requires a building permit in Chicago or Aurora.
Both Aurora and Chicago offer trade-specific licenses for electricians, HVAC techs, and more.
For more, consult our guides to getting your HVAC license, plumbing license, or electrical license in Illinois.
APPLY FOR LICENSE: The first step in both cities requires filling out the license application. In Aurora, you can print out the contractor registration application and mail it to the Division of Building and Permits at 77 S Broadway, Aurora, IL 60505. There is also the option to complete the application online via the city’s online portal. In Chicago, you need to print out the license application and mail it to the City of Chicago General Contractor License P.O. Box 388249, Chicago, IL 60638-8249.
PAY LICENSING FEE: The license fee in Chicago is based on the contractor license classification: Class A - $2,000, Class B - $1,000, Class C - $750, Class D - $500, Class E - $300. There is no fee for the license exam. In Aurora, new applicants must pay a $200 registration fee.
TAKE LICENSING EXAM: Candidates for a general contractor license in Chicago must pass the licensing exam administered by Continental Testing Services.
PROVIDE PROOF OF INSURANCE: In Chicago, insurance requirements are based on the license classification: Class A - $5 million per occurrence (primary or umbrella), Class B - $3 million per occurrence (primary or umbrella), Class C - $1 million per occurrence and $2 million in the aggregate, Class D - $1 million per occurrence and $2 million in the aggregate, Class E - $1 million per occurrence. You also need workers’ compensation insurance.
In Aurora, you need general liability insurance of at least $1 million general aggregate with $500,000 per occurrence as well as workers’ compensation insurance. Aurora contractors must also obtain a surety bond in the amount of $5,000. The bond must be valid for a minimum of one year.
Getting an Illinois Roofing License
The state of Illinois offers two classifications of roofing licenses, limited and unlimited. Limited license holders can work on residential structures, while unlimited contractors can work on residential and commercial properties.
The process involves passing a licensing exam and obtaining workers’ compensation insurance, unemployment insurance, and general liability insurance.
What Are the Requirements of an Illinois Contractor License?
The requirements for licensure as a contractor in Illinois are all intended to demonstrate that an individual who will be serving the public is properly prepared to do the job right. To that end there are age, knowledge, and financial prerequisites.
You must be at least 18 years of age.
You must have either a Social Security number or an individual taxpayer identification number.
Apply for the specific license type and classification.
Specify your business entity, such as LLC, sole proprietor, or partnership.
Provide proof of general liability insurance and workers’ compensation insurance. In Aurora, you also need to obtain a surety bond.
In Chicago, pass the contractor licensing exam via Continental Testing Services.
Pay all fees.
Submit the contractor license application.
How Long Does It Take to Get a Contractor License in Illinois?
Since there are no work experience or education requirements, the process for obtaining a contractor license is relatively quick. In Chicago, the Department of Buildings will process the issuance of your contractor license within 10 business days of receiving the completed application and all required documentation. Aurora processes license applications as soon as they are received.
What Business Owners Need to Know
Being efficient in the contracting world, no matter where you are in your licensing journey, takes work. ServiceTitan’s cloud-based, all-in-one contracting software gives workers and business owners in residential field service, commercial contracting, or new construction the technology they need to do the work efficiently, and the data they need to do it effectively.
ServiceTitan features:
SMS communications that keep customers informed about the technician’s visit.
Location-specific service history, including recorded calls, accessible from the mobile app.
Required forms that ensure every job is done right, driving consistency.
The ability to build multi-option proposals with photos, on-site, in minutes.
Sales presentations that make conversations with customers easier and drive the average ticket.
Mobile payment acceptance, eliminating lost checks and increasing cash flow.
To learn more, schedule a demo with a product expert today.
How Much Does It Cost to Get a Contractor License in Illinois?
The license fee for a Chicago contractor license depends on the classification and can range from $300 to $2,000. In Aurora, the registration fee for a contractor license is $200.
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Illinois Contractor License Training Programs and Schools
There are no specific educational or course requirements to get an Illinois contractor license. However, there are training programs throughout the state that can help you prepare for a career in construction.
If you don’t attend any formal schooling, but rather learn on-the-job and get paid, you may want to consider signing up for an apprenticeship. Apprenticeship Illinois runs a registered apprenticeship program across the state with more than 400 programs and 1,660 sponsoring employers. The Illinois Laborers and Contractors Joint Apprenticeship and Training Program also provides apprenticeship opportunities.
If you choose to start your career path at a college or university, you can pursue a degree in construction management or construction engineering. There are many higher education options throughout the Prairie State that offer these types of programs. Each of the following schools offers a Construction Management Bachelor of Science degree.
There are also many Illinois community colleges throughout the state that offer Construction Management programs and Associate degree and certificate options.
Does Illinois Reciprocate Contractor Licenses?
No. Illinois does not have reciprocal agreements with other states because it doesn’t offer a state-issued general contractor license. Neither Chicago, Aurora, Rockford, or Springfield offer reciprocal agreements at the municipal level.
Do I Need to Renew my Contractor License in Illinois?
Most cities in the state of Illinois require contractors to renew their licenses annually, including Chicago and Aurora.
In Chicago, Continental Testing Services processes general contractor license renewals on behalf of the Department of Buildings. To renew your license, you must submit the Renewal Form and provide the same documentation as when you initially received your license, including proof of liability insurance and workers’ compensation insurance. You must also sign an affidavit attesting no information has changed from your original application. The renewal fee is the same as the initial license fee: Class A - $2,000, Class B - $1,000, Class C - $750, Class D - $500, Class E - $300.
Aurora contractors must renew their licenses each year and pay the $200 renewal fee via the city’s online web portal.
Are There Any Penalties for Contracting Without a License in Illinois?
Yes. There are fines, misdemeanor charges, and even possible jail time for contracting without a license in Chicago. Fines can range from $250 to $500 for each offense. The city also has the authority to shut down any business that operates without a license. Continuing to operate a business after being shut down can result in fines between $500 and $1,000, misdemeanor charges, and incarceration for up to six months.
National Certifications
Other certifications can help you demonstrate your proficiency to potential employers and clients. There are many professional organizations that offer certification. These certifications are not required but can add to your marketability and therefore increase your opportunity to make more money.
Some of the top construction certifications are:
Occupational Safety and Health Administration (OSHA) Safety Certificate
Construction Management Association of America Certified Construction Manager (CCM)
National Association of Safety Professionals (NASP) Certified Safety Manager (CSM) certification
National Center for Construction Education & Research (NCCER)
Continuing Education
General contractors are not required to complete continuing education to maintain their licenses in Chicago or Aurora. Despite not requiring continuing education, you will want to stay informed about emerging technology in the industry. There are many ways to keep yourself current in regard to the technology put to use in construction, roofing, energy and environmental designs, efficiency standards and more. For example, distributors want you to know about their company’s latest offerings and will often hold training sessions about new and changing equipment and parts. Another option is the Associated General Contractors of America (AGC) which provides continuing education courses.
Resources
You can stay up to date on contracting industry news several ways:
Check top blogs, including ServiceTitan’s blog.
Read about the latest industry trends, and discover ideas on how to grow your business.
Listen to top podcasts like ServiceTitan’s “Toolbox for the Trades” podcast.
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