Contractor license requirements in Georgia, North Carolina, South Carolina and Tennessee

The dollar amount that triggers a contractor license varies more than tenfold across four neighboring states: $2,500 in Georgia, $5,000 in South Carolina (residential), $25,000 in Tennessee and $40,000 in North Carolina. In Georgia and North Carolina, electrical, plumbing and HVAC contracting needs a trade license at any job size, with narrow exceptions. In South Carolina that line is $500 for residential work, and Tennessee has its own small-job rules. In all four states a house built to sell needs a licensed contractor, and working unlicensed can cost you the right to collect what you're owed.

The rules at a glance

Cities and counties add their own rules and permits. Always check with the state board and your local building department before you bid.

Georgia

Georgia law requires a residential contractor license when the work or your pay exceeds $2,500 (O.C.G.A. 43-41-2). Commercial general contracting has no dollar minimum. The board exempts many specialty trades, such as roofing, siding, drywall, painting and flooring, when they stay within their specialty. Most tradespeople who need a license start with Residential Basic (1–2 family homes and townhouses). It requires:

• Age 21 or older and at least 2 years of experience working as or for a residential contractor, with significant responsibility on at least 2 projects
• Passing the Business and Law and trade exams
• $25,000 minimum net worth and $300,000 of general liability insurance

Electrical, plumbing and conditioned-air (HVAC) contractors are licensed separately by the Construction Industry Licensing Board. A Class I electrical license, for example, requires at least 4 years of experience. A specialty contractor working within its trade doesn't also need a residential license.

South Carolina

The Residential Builders Commission requires a residential builder license when a job costs more than $5,000. It requires at least 1 year of residential building experience in the past 5 years, two exams, a $15,000 surety bond and a $135 application fee. Plumbers, electricians and HVAC installers need an examined specialty license for work over $500; that threshold was $200 until 2022.

Commercial work is licensed by a separate board above $10,000 (raised from $5,000 in 2023), in groups starting at $100,000 for general contractors and $35,000 for mechanical contractors.

Tennessee

You need a state contractor license before bidding a job of $25,000 or more, including subcontracted electrical, plumbing, HVAC and roofing work at that size. Your license limit is 10 times the lesser of your working capital or net worth; a $150,000 limit takes $15,000 of each. Since July 1, 2026, a surety bond of at least 50% of your requested limit can replace the CPA financial statement. Separately, the restricted residential license (BC-A/r), for single-family projects up to $125,000, lets you take a community college or vocational course instead of the exams.

Below $25,000, watch two rules. Nine counties, including Davidson (Nashville), Knox, Hamilton, Rutherford and Shelby, require a home improvement license for remodeling jobs over $3,000 and under $25,000; it doesn't cover electrical, plumbing or HVAC. And small electrical and plumbing jobs need a state limited license, except in cities with their own licensing, like Nashville, Memphis, Knoxville and Chattanooga, where the local license applies at any size. The plumbing license law doesn't apply in 15 mostly rural West and Middle Tennessee counties.

North Carolina

A general contractor license is required for projects of $40,000 or more, up from $30,000 in October 2023. The threshold is based on the cost of the whole project, so don't count on splitting it into smaller contracts to stay under. There's no experience requirement: you qualify by exam and by showing working capital.

Plumbing and heating contractors need a license at any job size, including work on property you plan to sell or rent, with a narrow exception for minor repairs to an existing system. Electrical contractors are licensed in tiers by job value.

The spec-house rule

Every state here lets you build your own home without a contractor license, but only to live in. A house you build to sell or rent needs a licensed contractor. If you plan to move up to owning projects, the license comes first.

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Data as of October 2026. Not legal advice. Rules change; confirm with the state board and local building department before you bid.

Questions

How much work can you do without a contractor license in Georgia?

Georgia requires a residential contractor license when the work or your pay exceeds $2,500. Commercial general contracting has no minimum, many specialty trades like roofing and painting are exempt within their specialty, and electrical, plumbing and HVAC work need a state trade license at any size.

What is the contractor license threshold in North Carolina?

$40,000 or more for a general contractor license, up from $30,000 in October 2023. Plumbing and heating work needs a license at any job size, apart from narrow exceptions like minor repairs.

Do you need a contractor license in Tennessee under $25,000?

Not a state contractor license, but nine counties require a home improvement license for remodeling jobs over $3,000 and under $25,000, and small electrical and plumbing jobs need a state limited or local license.

When do you need a residential builder license in South Carolina?

When a residential job costs more than $5,000. Plumbing, electrical and HVAC work over $500 needs an examined specialty license.