Licensing Guides
State Contractor License: How to Become a General Contractor in Minnesota
Contractor, MN
Table of Contents
Why Do You Need a Contractor License in Minnesota?
Can You Get a Contractor License in Minnesota?
Types of Roofing Licenses in Minnesota
What Are the Requirements of a Minnesota Contractor License?
How Long Does It Take to Get a Contractor License in Minnesota?
How Much Does It Cost to Get a Contractor License in Minnesota?
Minnesota Contractor License Training Programs and Schools
Does Minnesota Reciprocate Contractor Licenses?
Do I Need to Renew my Contractor License in Minnesota?
Are There Any Penalties for Contracting Without a License in Minnesota?
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 people 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). The state of Minnesota employs 5,120 managers and 24,540 laborers and helpers. The national number for managers is projected to grow 9% from 2023 to 2033 and for laborers and helpers, it’s 8%. In Minnesota, according to CareerOneStop, the U.S. Department of Labor’s job search website, the projected growth rate is 8% for laborers and 6% for managers. If you’re thinking about becoming a contractor or you want a job in the field, you need to know the requirements in your state or local jurisdiction. This guide will help you determine what you need to get started as a general contractor in the state of Minnesota.
Why Do You Need a Contractor License in Minnesota?
A contractor license is required for residential work valued at $15,000 or more in Minnesota. Subcontractors who do not contract with the homeowner are exempt, but must register with the Minnesota Department of Labor and Industry through the Construction Contractor Registration Program. There is a nine-factor test to qualify as an independent contractor in the state of Minnesota, and all criteria must be met.
There is no statewide license for commercial contractors, but they are required to register through the Construction Contractor Registration Program as well. Licensing and registration is overseen by the Minnesota Department of Labor and Industry.
License numbers are required to be included on all business cards, contracts, notices, and advertising, including websites.
How Can You Get a Contractor License in Minnesota?
The licensing requirements are all spelled out on the Minnesota Department of Labor and Industry website.
Residential contractors are required to register with the Secretary of State and pass a contractor exam. They also need general liability insurance with minimum coverage of $100,000 per occurrence, $300,000 aggregate, and $25,000 in property damage, and workers’ compensation insurance. Applicants are required to fill out a background disclosure form.
Contractor registration requires a Secretary of State business filing, and if the applicant has employees, proof of workers’ compensation insurance and an unemployment Insurance account with the Minnesota Department of Employment and Economic Development.
Types of General Contractor Licenses in Minnesota
There are two types of contractor licenses in the state of Minnesota:
Residential Remodeler: Can only perform work on existing structures.
Residential Building Contractor: Can perform work on existing structures and build new structures.
If a contractor performs work that utilizes more than one of these special skills below, they are required to obtain one of the licenses listed above:
Excavation
Masonry/concrete
Carpentry
Interior finishing
Exterior finishing
Drywall and plaster
Roofing
General installation specialties (garage doors, pools and hot tubs, fireplaces, asphalt paving and sealcoating)
Specialty contractors who provide only one special skill are not required to have a state license, with the exception of residential roofers.
Getting a general contractor license
The bottom line is that you need to be licensed to do any kind of initial residential construction, repair, or maintenance work valuing more than $15,000 in Minnesota. Whether you are applying for the Residential Building Contractor license or the Residential Remodeler license, the application process is the same. Here’s how you go about getting licensed.
REGISTER YOUR BUSINESS: A Secretary of State business filing is required for all businesses, except in the case of an individual proprietorship or partnership in which the full legal name(s) of the individual(s) operating the proprietorship or partnership are included in the company name. The Secretary of State filing allows operation as a business in Minnesota.
PASS EXAM: Schedule for and pass the required exam: Qualifying Builder or Qualifying Remodeler, depending on which license type you intend to apply for. The person who passes the exam will be listed as the Qualifying Person on the license application. Exam candidates are provided with two reference books, which can be used during the exam: the Minnesota State Residential Code, 2020 edition, and the DLI Reference Manual for Residential Building Contractor and Remodeler License Exam. Roughly 60% of the 110 exam questions relate to the Minnesota Residential Building Code, and the rest are based on the statutes and rules governing the various aspects of the residential construction industry.
OBTAIN REQUIRED INSURANCE: Obtain general liability insurance with minimum coverage of $100,000 per occurrence, $300,000 aggregate, and $25,000 in property damage, and workers’ compensation insurance.
SUBMIT APPLICATION: Fill out and submit the application with a license fee. The base license application fee is $180, plus an additional fee for the Contractor Recovery Fund based on your gross annual receipts.
Less than $1 million: $320
$1 million to $5 million: $420
Gross annual receipts greater than $5 million: $520
The Contractor Recovery Fund replaces bonding requirements. The fund is in place to reimburse consumers who suffer a financial loss as a result of a licensed residential building contractor or residential remodeler engaging in fraudulent, deceptive, or dishonest practices.
You may upload your license application and pay by credit card online at the DLI website or mail your application to DLI, along with a check or money order payable to the Minnesota Department of Labor & Industry.
Registering as a contractor
Construction contractor registration requires the same Secretary of State business registration, along with workers’ compensation insurance and an unemployment insurance account with the Minnesota Department of Employment and Economic Development if the contractor has employees. Registration is completed online. There is no application fee.
You can also consult our guides to getting your HVAC license, plumbing license, or electrical license in the state of Minnesota.
What Are the Requirements of a Minnesota Contractor License?
The requirements to become a licensed contractor in Minnesota 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 knowledge/experience and financial prerequisites.
Register with the Secretary of State.
Take and pass all parts of the licensing examinations.
Fill out a background disclosure form.
Pay all fees.
File evidence of general liability insurance and workers' compensation insurance.
How Long Does It Take to Get a Contractor License in Minnesota?
There are no experience or advanced education requirements for licensure, so it doesn’t take long to acquire a license. The DLI website doesn’t list a timeframe for application processing, but notes online applications are processed about a week faster than those received in the mail.
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:
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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.
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How Much Does It Cost to Get a Contractor License in Minnesota?
The application fee is $180 for all license types. There is also a $50 fee to register for the required exam.
Residential Building Contractors and Residential Remodelers pay an additional fee to the Contractor Recovery Fund based on gross annual receipts.
$320 for gross annual receipts under $1 million
$420 for gross annual receipts between $1million and $5 million
$520 for gross annual receipts over $5 million
The total cost to get a contractor license in Minnesota is $550 to $750.
Minnesota Contractor License Training Programs and Schools
There are no specific educational or course requirements to get a Minnesota contractor license. However, there are training programs throughout the state that can help you prepare for a career in construction.
If you choose to start your career path at a college or university, you can pursue an associate or bachelor’s degree in construction management or construction engineering. There are many higher education options throughout the Land of 10,000 Lakes that offer these types of programs. They include:
If you don’t attend any formal schooling or training, but want to learn on the job, you may want to consider an apprenticeship. Through an apprenticeship, you work, accumulate necessary experience, and can earn money all at the same time. The length of time to complete an apprenticeship depends on the trade and program. Check out the Minnesota Registered Apprenticeship Application Directory to find apprenticeship opportunities.
The #1 newsletter for the trades.
Does Minnesota Reciprocate Contractor Licenses?
Unlike for plumbers or electricians, Minnesota does not have reciprocity agreements with other states for general contractor licensing.
Do I Need to Renew my Contractor License in Minnesota?
Yes you must renew your license. Residential Building Contractor and Remodeler licenses are active for a two-year cycle ending on March 31. The Qualifying Party on a license must complete 14 hours of DLI-approved continuing education, with one hour related to Energy Code and one hour related to business management strategies.
License renewal fees depend on annual gross receipts:
Less than $1 million: $505
$1 million to $5 million: $605
Greater than $5 million: $705
Contractor registrations need to be renewed by the expiration date of Dec. 31 of each odd-numbered year. There is no renewal fee.
Secretary of State filings must be renewed annually as well.
Are There Any Penalties for Contracting Without a License in Minnesota?
Yes, a person whose company is required to be licensed and who performs unlicensed work is guilty of a misdemeanor. In addition, an unlicensed person who knowingly violates the law is not able to claim a lien. In addition, individuals engaging in unlicensed activity are subject to administrative and civil penalties.
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 industry 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
The Qualifying Person on a license, which is the person who passes the initial exam, must complete 14 hours of DLI-approved continuing education, with one hour related to Energy Code and one hour related to business management strategies, before renewal. The Department of Labor and Industry maintains a directory of approved continuing education courses.
The Qualifying Person can track their continuing education credits with their Q registration number.
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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