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TNState License RequiredNASCLA Accepted

Tennessee Contractor License

Tennessee Board for Licensing Contractors

Tennessee requires a state-level contractor license for projects above $3,000 for residential; $25,000 for commercial. Exam required. NASCLA accepted. Administered by Tennessee Board for Licensing Contractors.

Licensing & Bidding in Tennessee

If you plan to bid construction work in Tennessee, the Tennessee Board for Licensing Contractors requires a state license before you submit a bid on most projects. The thresholds are aggressive: residential work triggers licensing at just $3,000, while commercial work requires a license at $25,000 and above. Critically, Tennessee law generally requires that you hold the proper license at the time you bid, not merely when you sign the contract, so an out-of-state firm chasing public or large private work should secure licensure before the proposal goes in. The license also carries a monetary limit tied to your financial statement and bond, so price your bids within the dollar limit your license actually authorizes.

Tennessee accepts the NASCLA exam, which streamlines entry for contractors already qualified in other NASCLA-recognized states, and it maintains exam reciprocity with neighbors including Alabama, Arkansas, Georgia, Louisiana, Mississippi, North Carolina, Ohio, and South Carolina. Even with reciprocity, you must still apply to the Tennessee board and meet its financial and bonding requirements. Bond amounts of $500,000 or $1,000,000 are among the highest in the country, so build those bonding and insurance costs into your overhead before quoting.

Bidding unlicensed in Tennessee is a costly mistake. It is a Class A misdemeanor carrying fines up to $2,500 and potential jail time, and unlicensed contractors forfeit mechanics lien rights, meaning you may be unable to enforce payment on completed work. Plan ahead: application processing takes four to six weeks, and residential contractors must complete eight hours of continuing education to keep the license active and protect your eligibility to keep winning work.

Key Facts

GC License Required
Yes
Threshold
$3,000 for residential; $25,000 for commercial
Exam Required
Yes
NASCLA Accepted
Yes
Official Board Website

Fees

Application Fee
$250 (non-refundable)
License Fee
Included in application
Renewal Fee
$250 biennially

Key Facts

  • Residential threshold of $3,000 is one of the lowest in the nation
  • Bond amounts of $500,000 or $1,000,000 are among the highest
  • Home improvement contractors have separate $10,000 bond requirement
  • Application processing takes 4-6 weeks

Insurance Requirements

General Liability
Required for all licensed contractors
Workers Comp
Required for all contractors with employees
Surety Bond
$500,000 (if financial limit $1.5M or less); $1,000,000 (if over $1.5M)

Continuing Education

8 hours for residential contractors

Reciprocity States

ALARGALAMSNCOHSC

Specialty Licenses Required

ElectricalPlumbingHVACMasonryRoofingSwimming Pool

How to Apply

  1. 1Submit application to the Board for Licensing Contractors with $250 fee
  2. 2Pass the Business and Law exam and trade exam (NASCLA accepted)
  3. 3Provide a financial statement showing required financial capacity
  4. 4Obtain general liability and workers compensation insurance
  5. 5Purchase surety bond ($500,000 or $1,000,000 depending on financial limit)
  6. 6Provide support letters and notarized affidavit

Penalties for Unlicensed Work

Class A misdemeanor; fines up to $2,500; up to 11 months 29 days jail; loss of lien rights

Related Templates

Pre-Qualification QuestionnaireCOI Request FormSubcontractor Agreement

Frequently Asked Questions

Yes. Tennessee requires a state-level contractor license for projects above $3,000 for residential; $25,000 for commercial. The administering board is Tennessee Board for Licensing Contractors.
Yes. Tennessee requires a licensing exam. The state accepts the NASCLA standardized exam as an alternative to the state-specific exam.
General Liability: Required for all licensed contractors. Workers Comp: Required for all contractors with employees. Bond: $500,000 (if financial limit $1.5M or less); $1,000,000 (if over $1.5M).
Class A misdemeanor; fines up to $2,500; up to 11 months 29 days jail; loss of lien rights
Tennessee generally requires the proper license at the bid stage, not just at contract signing. Submit large or public bids only after you are licensed, since bidding above the residential $3,000 or commercial $25,000 thresholds without a license can invalidate your standing and forfeit lien rights.
Tennessee bond requirements are among the highest nationally, commonly $500,000 or $1,000,000 depending on classification, while home improvement contractors carry a separate $10,000 bond. Confirm your bond and monetary limit before bidding, since both cap the project value your license authorizes you to take on.
Yes. Tennessee accepts the NASCLA exam and offers exam reciprocity with states including Alabama, Arkansas, Georgia, Louisiana, Mississippi, North Carolina, Ohio, and South Carolina. You still must apply to the Tennessee board and meet its financial and bonding requirements, and processing typically takes four to six weeks.

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