How To Get A Tennessee Contractor's License
Are you looking to get your general contractor license in Tennessee? Our step-by-step guide explains everything you need to know to become a licensed general contractor in Tennessee. From application requirements to the benefits of the NASCLA exam, learn how to meet state licensing standards and start working on commercial projects legally and confidently.
Set Yourself Apart With A Tennessee Contractor's License
Securing your general contractor license in Tennessee opens the door to a wide range of professional opportunities. Not only does it legally authorize you to take on larger, higher-paying projects, but it also helps you stand out in a competitive market. Licensed contractors are viewed as more reliable and trustworthy, giving clients confidence in your skills and business practices. Plus, holding a valid Tennessee contractor license can make it easier to secure financing, pull permits, hire subcontractors, and even expand your business across state lines. It’s more than a requirement
YouR Tennessee Contractor's License
NASCLA Exam
If you’re planning to become a licensed contractor in Tennessee, it’s important to understand which license types the NASCLA exam covers. The NASCLA Accredited Examination for Commercial General Building Contractors is a popular exam for contractors looking to work across multiple states—it’s accepted by Tennessee as a substitute for the trade exam only for the BC-B Commercial Contractor license.
However, if your goal is to obtain a BC-A Residential Contractor license in Tennessee, which allows you to build or remodel one-to-four family homes up to three stories, the NASCLA exam will not meet the trade exam requirement. Instead, you must pass the BC-A Residential trade exam along with the mandatory Tennessee Business and Law exam.
For smaller residential projects under $125,000, Tennessee also offers a BC-A/r Limited Residential License. This option does not require a trade exam—instead, you can attend a pre-approved course through a Tennessee community college. However, consider that this license comes with strict monetary limits.
In short: The NASCLA exam is ideal for commercial contractors or those seeking multi-state licensing, but it does not qualify you for a full residential contractor license in Tennessee. Be sure to choose the right exam path based on the type of work you plan to do.
Our NASCLA Prep Plans
NASCLA Practice Exam
For students already well prepared for the NASCLA
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Two attempts on a timed NASCLA practice exam
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Answer key
NASCLA Full Course
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Tutorial Videos
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Time practice exams
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NASCLA Book Tabs
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Proven Benefits Of A Tennessee General Contractor's License
Large Scale Projects
With a BC-B license, you’re authorized to bid on, build, renovate, or manage commercial construction projects of unlimited size and value. This includes offices, retail centers, warehouses, schools, and more. This opens the door to high revenue and profit opportunities!
Increased Professional Credibility
Being a licensed commercial contractor builds trust with clients, architects, and developers. It shows you’ve met state qualifications and regulatory standards, giving you a competitive edge in bids while also showing reliability and qualification.
Legal Compliance and Business Growth
Holding a BC-B license ensures you’re operating in full compliance with Tennessee state law. It also allows you to pull commercial permits, expand your business scope, and grow strategically without licensing barriers.
The Process
TN General Contractor Application Requirements
Before starting your journey to become a licensed contractor in Tennessee, it’s essential to understand the Tennessee contractor license application process and exam requirements. Visit the Tennessee Board for Licensing Contractors to review the official steps and ensure you’re on the right track. To help you get started, we’ve outlined a few key details that every applicant should know before applying.
1. Tennessee Contractor's License Based On Contract Value
A contractor’s license is mandatory for any individual or business that bids on projects where the total cost is $25,000 or more, including materials and labor. This law applies to prime contractors, subcontractors, and construction managers.
2. Tennessee Contractor License Financial Requirements
What Financial Statement Do You Need?
Your monetary license limit—the maximum value of a project you’re approved to handle—is directly tied to your financial strength, which is verified through a CPA-prepared financial statement.
For license limits up to $3,000,000: You must submit a Reviewed Financial Statement from a licensed CPA.
For license limits over $3,000,000: You are required to provide an Audited Financial Statement.
How Is Your Monetary Limit Calculated?
Tennessee calculates your monetary limit at 10× the lesser of your working capital or net worth:
Working Capital = Current Assets – Current Liabilities
Net Worth = Total Assets – Total Liabilities
Example: If your working capital is $70,000 and your net worth is $100,000, your limit would be $700,000 (10 × $70,000).
Can You Qualify for an Unlimited License?
Yes! To be eligible for an unlimited BC-B license in Tennessee, you must:
Provide to the Board an Audited Financial Statement
Have a minimum of $300,000 in both working capital and net worth
This license will allow you to bid and build commercial projects of any size.
Financial Documentation for License Renewals and Revisions
License Renewals ≤ $3 million: You may submit a self-prepared statement.
Renewals or Revisions Over $3 million: Must include a reviewed or audited financial statement, based on your limit.
3. Pass The Required Exams
Applicants are required to pass a trade exam corresponding to the specific classification necessary unless a waiver is granted through reciprocity agreements and Tennessee Business and Law examination. In Tennessee, the NASCLA exam can serve as your trade exam for a BC-B contractor license.
4. Business Registration
The business entity (e.g., sole proprietorship, partnership, corporation, LLC) must be properly registered with the Tennessee Secretary of State. The name on the license must exactly match the name on the financial statement and all related documents. This entity will be the license holder, whereas the individual that has passed the exams will be the qualifier for the license holder.
5. Proof Of Insurance
Applicants must provide a certificate of insurance (COI) demonstrating general liability coverage. The amount of coverage should be sufficient for the monetary limit requested.
6. Application Submission and Fee
A completed application must be submitted along with a non-refundable fee of $250. Applications are reviewed by the Board, and approval is required before a license is issued.
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TN Contractor License FAQ
If you’re preparing to become a licensed contractor in Tennessee, we’ve got you covered. Explore our guide to see if your questions about the Tennessee contractor license process are answered. If you still need help, don’t hesitate to reach out to our team—we’re here to support you every step of the way!
An unlicensed contractor can only perform projects up to $25,000 in Tennessee.
A commercial building contractor has authorization to bid on and contract for use and occupancy by the general public for commercial use. This also includes residential construction with more than 4 units or greater than 3 stories.
The NASCLA exam fee is $130.00.
The NASCLA exam can be used as the trades exam for the commercial contractor license (BC-B) in TN.
The application fee is $250 and is issued for 2 years.
It takes the Tennessee Contractor Board approximately 4 to 6 weeks to grant a license.
Only one letter of reference is a is necessary, but should be submitted with your contractor license application in TN.
General liability insurance is a required based on the monetary limit of a contractor in TN.
Workers compensation insurance is required or you may supply proof of exemption.
If you plan to operate your business as an entity you should form that entity before completing the TN contractor license application.
You will complete the application as the entity. The qualifying agent will be the individual from the entity that takes the exam(s).
The TN Business, Law and Project Management exam is required to obtain your contractor license. You will take this exam after you pass the trades exam.
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