Who Needs a Contractor License in Minnesota?

Minnesota does not license every contractor. The state’s test asks who you contract with, what kind of building it is, and how many “special skills” the job covers. Here is the test, from the Department of Labor and Industry (DLI) and two statutes: Minnesota Statutes 326B.805 (who must be licensed, and the exemptions) and 326B.802 (the definitions).

Quick test: is a state contractor license needed?

“Home” here means what 326B.802 calls residential real estate: a building “constructed for habitation by one to four families”, including detached garages.

Your situation	State contractor license?	Why, and the conditions
You contract directly with a home’s owner for work in more than one special skill	Yes. Building contractor (BC) or remodeler (CR)	DLI’s licensing page. 326B.802 defines these contractors: a person “in the business of” building homes, or of contracting or offering to contract with an owner, by providing two or more special skills. 326B.805 requires them to be licensed.
Roofing only, for a home’s owner	Yes. BC, CR or roofer (RR)	DLI’s page. 326B.805 requires a residential roofer to be licensed. Its exemption for one-skill specialty contractors has no roofer carve-out in its own text; “except residential roofers” appears only on DLI’s page.
One special skill only, not roofing	No state license, but registration	326B.805 exempts “specialty contractors who provide only one special skill”. 326B.701 requires a person who performs building construction or improvement services to register with DLI unless an exception applies. A city or county can require a local license.
Gross annual receipts within the $15,000 exemption, with a Certificate of Exemption	No, but only with the certificate	326B.805 says receipts that “do not exceed $15,000”. DLI’s page says “less than $15,000”. Conditions are below the table.
Employee of a licensed contractor	No	326B.805: an employee of a licensee “performing work for the licensee”.
Subcontractor who does not contract with the homeowner	No, per DLI	DLI’s page lists these subcontractors as not needing a license, and says they must register with DLI. 326B.805 lists no subcontractor exemption. 326B.802 defines a remodeler and a roofer by contracting “with an owner”, but it also defines a building contractor as “a person in the business of building residential real estate”, with no owner in that part. If you build new homes as a subcontractor, ask DLI.
Owner working on their own home	No	326B.805: the owner “occupies or will occupy” the home, or will keep it as a rental when the work is done. DLI’s page states the resale or speculation exception, but not the occupancy or rental condition.
Owner who builds or improves homes to resell	Yes. BC or CR	DLI’s page says this owner must have a license. 326B.805 says the owner exemption does not apply to work “for purposes of resale or speculation”. Speculation is presumed “if the owner constructs or improves more than one property within any 24-month period, unless the properties will be retained by the owner for rental purposes”.
Landlord working on their own rental units	No, with a limit	DLI’s page: landlords “performing work other than plumbing or electrical work”. 326B.805 words it differently: an owner who “will retain ownership for rental purposes upon completion”.
Residential buildings with more than four units, and commercial work	No	DLI’s page. Commercial contractors must register with DLI.
Plumbing	A plumbing license instead	326B.805 exempts a plumber or electrician “when engaged in the activity which is the subject of that licensure”. DLI: contracting for plumbing work takes a plumbing contractor license or a restricted plumbing contractor license. A restricted contractor cannot contract for work in communities with a population over 5,000. See hiring a plumber.
Electrical	An electrical license instead	The same 326B.805 exemption. DLI: contracting for electrical work takes an electrical contractor license. See electrical work and permits.
Heating and cooling (mechanical)	No state license, but a bond	326B.805 exempts “a mechanical contractor”. DLI requires a $25,000 mechanical contractor bond to contract for gas, heating, ventilation, cooling, air conditioning, fuel burning or refrigeration work. Local licensing requirements still apply.
Solar panels on a home	Yes. BC or CR	DLI’s page, effective July 1, 2023, for companies that contract with homeowners to install solar photovoltaic systems. The installation work must be done by a Minnesota-licensed electrical contractor.
Supplier who does not install	No	326B.805: a material person, manufacturer or retailer “who does not install or attach the items”.

326B.805 lists other exemptions too:

• architects and professional engineers in professional practice
• school districts, and technical colleges governed under chapter 136F
• Habitat for Humanity and Builders Outreach Foundation, and their individual volunteers when working on their behalf
• besides plumbers and electricians, any “other person whose profession is otherwise subject to statewide licensing”, when engaged in the licensed activity

The $15,000 exemption’s conditions, from 326B.805:

• You must obtain a certificate of exemption from DLI. Your affidavit states that you do not expect to exceed $15,000 in gross annual receipts from work that requires a license during that calendar year.
• To renew, your affidavit states that you did not exceed it during the past calendar year.
• If you exceed it in any calendar year, you must “immediately surrender the certificate” and apply for the license. You stay licensed until a calendar year’s receipts fall below $15,000.
• 326B.802 defines gross annual receipts as the total from residential contracting or remodeling, “regardless of where the activities are performed”. It is not reduced by cost of goods sold, expenses, losses “or any other amount”.

The eight special skills

Special skill	Work DLI’s page lists
1. Excavation	Excavation, trenching, grading, site grading
2. Masonry/concrete	Drain systems, poured walls, slabs and poured-in-place footings, masonry walls, masonry fireplaces, masonry veneer, water resistance and waterproofing
3. Carpentry	Rough framing, finish carpentry, doors, windows and skylights, porches and decks (excluding concrete footings), wood foundations, drywall installation (excluding taping and finishing)
4. Interior finishing	Floor covering, wood floors, cabinet and countertop installation, insulation and vapor barriers, interior or exterior painting, ceramic, marble and quarry tile, wallpapering, ornamental guardrail and installation of prefabricated stairs
5. Exterior finishing	Siding, soffit, fascia and trim, exterior plaster and stucco, painting, rain carrying systems including gutters and down spouts
6. Drywall and plaster	Installation, taping, finishing, interior plaster, painting, wallpapering
7. Roofing	Roof coverings, roof sheathing, roof weatherproofing and insulation, repair of roof support system (not construction of a new one), penetration of roof coverings to attach a solar photovoltaic system
8. General installation specialties	Garage doors and openers, pools, spas and hot tubs, fireplaces and wood stoves, asphalt paving and seal coating, ornamental guardrail and prefabricated stairs, assembly of the support system for a solar photovoltaic system

Read the list closely:

• Painting: interior finishing, exterior finishing, and drywall and plaster.
• Wallpapering: interior finishing, and drywall and plaster.
• Drywall installation: carpentry, and drywall and plaster.
• Ornamental guardrail and prefabricated stairs: interior finishing and general installation.
• Decks: carpentry, but not the footings. The two word this differently: DLI’s page says “excluding concrete footings”, and 326B.802 says “excluding footings”. Poured-in-place footings are under masonry/concrete.

Neither DLI’s page nor 326B.802 says how to count work that sits in more than one area. Ask DLI licensing at 651-284-5034.

Does a handyman need a license in Minnesota?

DLI’s pages and the statutes cited here never use the word “handyman”. The same test applies:

• One special skill only, not roofing: no state license. 326B.701 still requires you to register with DLI unless an exception applies.
• More than one special skill: a BC or CR license, unless you hold the Certificate of Exemption. 326B.805 allows it for gross annual receipts that “do not exceed $15,000”; DLI’s page says “less than $15,000”.
• Roofing: a license even alone. DLI’s pages and 326B.805 are not plain on whether the $15,000 exemption can cover roofing, so ask DLI.
• Plumbing or electrical work: each has its own license. DLI’s pages for them list no $15,000 exemption.

Which license

The license goes to the business. A sole proprietor is licensed as an individual.

License	Number starts	What it allows	Exam
Residential building contractor	BC	All the work a remodeler can do, plus new structures	Qualifying builder (QB)
Residential remodeler	CR	Existing structures only. No new homes or detached garages	Qualifying remodeler (QC)
Residential roofer	RR	Roofing only. No gutters, downspouts, soffit or fascia; DLI says that work takes a BC or CR license	Qualifying roofer (QR)

What it takes and what it costs

1. Name a qualifying person. 326B.805 says who: the proprietor, a general partner, a limited liability company’s chief manager, a corporation’s owner or officer, or a managing employee who is regularly employed by the business and actively engaged in its residential work. One person may qualify more than one corporation or limited liability company only with common ownership of at least 25 percent. DLI’s exam page words the list differently: for a corporation “a chief executive officer or managing employee”, and for a partnership “a partner”. Confirm with DLI.
2. Pass the exam. DLI says it has 110 multiple choice questions, needs a score of 70% or higher, and allows five and a half hours. No experience or education is required first. If you fail, you wait 30 days before applying again. Passing earns a Q number, which DLI calls “a registration and not a license”.
3. File the business with the Minnesota Secretary of State. DLI excepts a proprietorship or partnership whose business name includes the owners’ full legal names.
4. Show insurance. DLI’s licensing page sets the liability minimum at $100,000 per occurrence, $300,000 aggregate and $25,000 in property damage coverage. You also show workers’ compensation compliance.
5. Apply online in iMS and pay.

Fee for a building contractor or remodeler license (DLI’s licensing page)	Amount
Base license fee	$180
Recovery Fund fee, gross annual receipts under $1 million	$320
Recovery Fund fee, between $1 and 5 million	$420
Recovery Fund fee, over $5 million	$520

DLI says the Recovery Fund “replaces bonding requirements”. DLI’s licensing and exam pages do not give the exam fee.

Term. Minnesota Statutes 326B.815 says licenses “shall be effective for two years and shall expire on March 31 of the year after the year in which the application is made”. Ask DLI for your exact expiry date.

Continuing education. This comes from DLI’s licensing pages: the qualifying person completes 14 hours of approved continuing education every two years, with at least one hour each on the Energy Code and business management strategies. The statute sections cited here do not give the hours. DLI’s consumer pages say licensed contractors complete classes “each year”.

Roofers. DLI’s roofer license page gives the same $180 license fee, but its other items differ: a $15,000 surety bond, and liability insurance of at least $300,000 per occurrence with at least $10,000 property damage coverage. Confirm with DLI licensing.

If you work without a required license

• It is a misdemeanor. DLI says: “A person whose company is required to be licensed and who performs unlicensed work as a residential building contractor or remodeler is guilty of a misdemeanor.”
• You may lose lien rights. Under Minnesota Statutes 326B.845, an unlicensed person who “knowingly violates” the licensing law has no right to claim a lien, and the lien is void. See mechanic’s liens.
• No permit. DLI says local governments, such as a city or county, cannot give a building or zoning permit to a residential building contractor or remodeler who needs a license and has none. They also have to report the attempt to DLI, for investigation.
• Penalties. DLI says unlicensed activity is “subject to administrative and civil penalties”. Minnesota Statutes 326B.84 and 326B.082 let the commissioner issue a monetary penalty of “up to $10,000 for each violation”.
• Show the number. DLI says license numbers must be on all business cards, contracts and all other advertising, including websites.

Local licenses

DLI says cities and counties cannot require a contractor who has a state license to get a local license for work the state license covers. They can require one for:

• Certificate of Exemption holders
• specialty contractors
• state-licensed contractors doing work outside the scope of the state license. DLI’s examples: work on city-owned property such as curb cut-ins or sidewalks, HVAC installation or maintenance, or commercial work.

If you are hiring: what to ask

• What is your license number? Residential license numbers begin with BC, CR or RR. DLI suggests you verify it at 651-284-5069. Here is how to check a license.
• Why is there no number on your card or website? Licensed contractors must show it there. A one-skill contractor may legally have no license, so ask which exemption applies.
• Is that an IR number? That is a registration, not a license. DLI says registered contractors are not required to provide proof of insurance or bonding. See licensed, registered, bonded and insured.
• Is it a BC or CR license? DLI’s fund page names only those two for the Contractor Recovery Fund. DLI’s consumer guide says the fund is not available if you hire an unlicensed contractor, even a legal one. The fund’s number is 651-284-5057.

Common questions

Sources

Every rule, number and deadline in this guide comes from these official pages, read on November 12, 2026. Rules change. The source is always the final word.

• Residential contractor licensing (Minnesota Department of Labor and Industry)
• Residential contractor FAQs (Minnesota Department of Labor and Industry)
• Roofer license (Minnesota Department of Labor and Industry)
• Contractor, roofer and remodeler exams (Minnesota Department of Labor and Industry)
• Construction contractor registration (Minnesota Department of Labor and Industry)
• Tips for hiring a contractor (Minnesota Department of Labor and Industry)
• A Consumer's Guide to Hiring a Residential Building Contractor (Minnesota Department of Labor and Industry)
• Minnesota Statutes 326B.805: Licensing requirements
• Minnesota Statutes 326B.802: Definitions
• Minnesota Statutes 326B.845: Penalties
• Minnesota Statutes 326B.84: Grounds for sanctions
• Minnesota Statutes 326B.815: Fees
• Minnesota Statutes 326B.701: Construction contractor registration
• Mechanical contractor bond requirements (Minnesota Department of Labor and Industry)
• Plumbing contractor licensing basics (Minnesota Department of Labor and Industry)
• Electrical contractor licensing basics (Minnesota Department of Labor and Industry)
• Contractor Recovery Fund (Minnesota Department of Labor and Industry)
• Minnesota Statutes 326B.082: Enforcement

This guide is general information, not legal advice.