Fees on this page were verified against each state’s licensing board. California, Washington and Nevada were re-checked on 19 October 2026; North Carolina (5 September 2026) and Louisiana (6 September 2026) are as verified for their state guides; Ohio was verified on 19 October 2026, and Alabama on 20 October 2026. Bond and insurance coverage content reviewed by Tyler Williamson, Licensed Property & Casualty Insurance Agent, North Carolina.
The licence fee is usually the cheapest part of getting licensed. Board fees across the states we cover run from $50 for an Ohio state trade licence, or $150.20 for a Washington registration, to $900 in Nevada for the first two years. The money that actually decides what licensing costs you is the bond, the insurance, the financial paperwork and the working capital some states require you to hold.
Most answers to “how much is a contractor license” quote a single number, often a range like “$700 to $1,500” with no breakdown. That number blends fees the board publishes with costs nobody publishes, and it hides the line items that vary most between contractors. This page separates them: what the board charges, and what everything else will cost you.
Comparing states? See how to become a general contractor, our side-by-side of the requirements in every state we cover.
What the board charges, state by state
| State | To apply | To issue | To renew |
|---|---|---|---|
| Washington | $150.20 | Included | $150.20 every two years |
| North Carolina | Up to $75 / $100 / $125 by limitation, plus exam up to $100 | — | See state guide |
| Louisiana (residential) | Exam up to $50 | Up to $100 | Up to $100 |
| Alabama (home builders, unlimited) | $100 non-refundable, plus exams $130 (paid to Prov) | $250 ($235 licence + $15 recovery fund) | $250 a year |
| California | $450 | $200 sole owner / $350 other | $450 sole owner / $700 other |
| Nevada | $300, non-refundable | $600 for two years | $600 every two years |
| Ohio (state trade licence) | $25 per trade | $25 | See state guide |
North Carolina and Louisiana publish their fees as statutory maximums rather than a schedule, so the figures above are the most the board can charge, not necessarily what it charges today. Louisiana’s commercial fee schedule is not in the board’s published materials at all. Check with each board before you budget to the dollar.
The first-year minimum
Adding up only the board fees, the cheapest first-year cost in each state looks like this:
| State | Board fees to get licensed |
|---|---|
| Washington | $150.20 |
| Louisiana (residential) | Up to $150 |
| North Carolina | Up to $175 (Limited) to $225 (Unlimited) |
| Alabama (home builders, unlimited) | $350, plus $130 for the exams |
| California | $650 sole owner / $800 other entity |
| Nevada | $900, plus $200 to $1,000 Recovery Fund for residential work |
| Ohio (state trade licence only) | $50 — but general contractors are licensed by their city, at the city’s fees |
Two details catch people out. In California, forming a corporation or LLC costs you more every renewal, not just once: $700 against $450. In Nevada, the $300 application fee is non-refundable even if your application is denied, and residential contractors pay the Recovery Fund assessment again at every renewal.
What actually costs money
The board fees above are small next to the costs that come with meeting the requirements. None of these are set by a board, so no honest page can give you a single number for them. Here is what they are and what moves the price.
The bond premium
California requires a $25,000 bond, Washington $30,000 for a general contractor and $15,000 for a specialty contractor, and Nevada sets anything from $1,000 to $500,000. North Carolina and Louisiana do not require a bond for licensure.
You do not pay the face amount. You pay the surety an annual premium, priced on your credit, financial statements, trading history and claims record. No board publishes or sets that premium, and two contractors can be quoted very differently for the same bond. In Washington you can avoid the premium altogether by posting an assigned bank account for the full amount instead. Full detail is in contractor license bonds by state.
Insurance
Some states make insurance a condition of the licence. Washington requires general liability of $200,000 public liability and $50,000 property damage, or $250,000 combined single limit. Louisiana requires $100,000 general liability for residential and home improvement work, plus workers’ compensation. Nevada requires proof of workers’ compensation before it will licence you. In California, five classifications must carry workers’ compensation whether or not they have employees. North Carolina requires no insurance to be licensed.
Whatever the state requires, general liability is close to unavoidable in practice, because clients and general contractors ask for a certificate before you start. Premiums depend on your trade, payroll, revenue, claims history and the limits you choose, so a roofer and a painter with identical limits will not pay the same. This is usually the largest recurring cost of being a licensed contractor, and it dwarfs the licence fee. We explain what each policy does in licensed, bonded and insured.
Financial statements
Several states want evidence of financial standing, and producing it can cost more than the licence. North Carolina accepts audited financial statements, an Agreed-Upon Procedures report prepared to AICPA standards, or a surety bond in lieu. The AUP report is usually the cheapest of the three. Nevada scales the requirement to your monetary limit: up to $25,000 you can use the Board’s own forms, but above that the statement has to be compiled, reviewed or audited, which means paying a CPA.
Working capital
This one is not a fee, but it is often the real barrier. North Carolina requires working capital of $17,000 for a Limited licence, $75,000 for Intermediate and $150,000 for Unlimited. That money has to exist in your business, not be spent. Louisiana sets a minimum net worth of $10,000. If you cannot show the figure, the alternatives are a bond, which costs a premium, or a lower limitation, which caps the jobs you can take.
Exam preparation
California, Nevada, North Carolina and Louisiana all require examinations; Washington requires none. The exams themselves are cheap or included in the application. Preparation is optional and is where most people spend: courses, books and practice tests. If you are an experienced tradesperson, the law and business exam is usually the one worth paying to prepare for.
How much is a handyman licence?
In most of the states we cover there is no handyman licence to buy. What decides it is each state’s threshold:
- Alabama: no handyman licence. Residential jobs at or under $10,000 including labour and materials ($2,500 for roofing) need no home builders licence; above that, the limited licence covers single-trade work with no exam, at $350 in board fees.
- North Carolina: no licence below $40,000 per project, and no handyman licence exists. Cost: nothing, until you reach the threshold.
- California: work under $1,000 including labour and materials is exempt, but only if it needs no permit and you employ nobody. Above that, you need a full licence.
- Nevada: repair and maintenance under $1,000 including labour and materials is exempt, unless it needs a permit, is plumbing, electrical or HVAC work, or is part of a larger project worth $500 or more. Above that, the full $900 licence applies.
- Ohio: no state handyman or general contractor licence. Handyman work is licensed or registered by your city, at its fees; electrical, plumbing and HVAC work on commercial jobs needs the $50 state trade licence.
- Washington: any work that alters the property needs registration, whatever it is worth. Only jobs such as gutter cleaning, lawn care and window washing are excluded, so a handyman pays the same $150.20 as anyone else, plus the bond and insurance.
Frequently asked questions
How much is a contractor’s license?
Board fees for the first two years range from $150.20 in Washington to $900 in Nevada among the states we have verified. The larger costs are the bond premium, insurance, financial statements and, in some states, working capital you must hold.
How much does it cost to get a contractor’s license in California?
$450 to apply and $200 to issue for a sole owner, or $350 for any other entity: $650 or $800 in board fees. You also need a $25,000 bond, paid as an annual premium, and workers’ compensation if you hold one of five classifications.
How much does it cost to be licensed, bonded and insured?
The licence is the fixed, published part. The bond premium and insurance are priced individually on your credit, trade, payroll and claims history, so there is no single figure. Get quotes from several sureties and insurers before you budget.
What is the cheapest state to get a contractor license in?
Ohio has the lowest state fee, at $25 to apply and $25 to issue, but that licence covers only five commercial trades and Ohio has no state general contractor licence at all. For a statewide general contractor credential, the cheapest of the states we cover is Washington, at $150.20 with no exam. Cheap is not the same as easy, though: Washington also requires a $30,000 or $15,000 bond and general liability insurance before it will register you.
Are contractor license fees refundable?
Generally not. Nevada states explicitly that its $300 application fee is not refunded, even if the application is denied, and Alabama’s $100 home builders processing fee is non-refundable.
Sources
- Contractors State License Board (California): list of all CSLB fees
- Washington State Department of Labor & Industries: register as a contractor
- Nevada State Contractors Board: general requirements FAQ
- North Carolina Licensing Board for General Contractors: statutes and regulations
- Louisiana State Licensing Board for Contractors
- Ohio Construction Industry Licensing Board: examination application (DIC 3524)
- Alabama Home Builders Licensure Board: Ala. Admin. Code r. 465-X-4-.04 (fees) and Candidate Information Bulletin
Fees change; confirm current amounts with each board before you apply. This page is research, not legal, financial or insurance advice.
