Getting a Tennessee contractor license can be pretty exhausting as it is a lengthy process. A contractor license is required by the people involved in the activities, such as a handyman or home renovator. 

There is a plethora of information concerned with the contractor’s license available online. However, this article will consolidate the different steps involved in successfully getting a contractor’s license.

The procedure involved in getting a Contractor’s license

Accomplish the Business and Law Exam

Irrespective of the type of contractor’s license you want, clearing the business and law exam is a must. The test is offered by PSI testing along with the facilities such as scheduling, registration, testing location, and more. A fee of $55 is charged for appearing in the examination.

Prepare a financial statement in detail.

Tennessee law requires an applicant applying for a contractor’s license to prepare an audited or reviewed financial statement that is developed by a designated accounting firm. Reviewed financial statements are required for the monetary limit of $1,500,000. Meanwhile, the audited financial statement is required for monetary limits which exceed the $1,500,000 limit.

For more information regarding the financial statements, you can consult the Tennessee Department of Commerce and Insurance website.   

Submit a reference letter and proof of insurance.

The next step in the application process for a contractor’s license is to submit the letter of reference. This letter must be formulated from a past client or employer who has direct experience with you. Moreover, you can also submit a letter from a code official who has inspected your work.

Furthermore, you also need to provide proof of insurance, especially general liability insurance based on the monetary limit. Also, you need to provide worker’s compensation insurance as well.

Register your business with the Tennessee Secretary of state.

Registering your business with the secretary of state is a must for every firm. All LLCs, partnerships, and corporations are required to get the registration certificate. Also, these businesses must also register their organization for getting a tax identification number.

Submit the application fee

The last and final step in getting a contractor’s license is to pay the application fee. However, before paying the amount, one must check whether the application for the contractor’s license I completely filled or not, and for the section which is not required in your application, you need to explain why you don’t require them.

For completing the application form, one needs to provide social security number, contractor’s affidavit, and Eligibility Verification for Entitlements.

After providing all this information, an applicant needs to submit a nonrefundable $250 fee at the following address. 

Tennessee Board for Licensing Contractors

 500 James Robertson Parkway

 Nashville, TN 37243-1150

After submitting the application, it typically takes around three weeks to process, and all the progress regarding the application is notified through email, mail, or fax. Moreover, all the licenses are issued for a duration of 2 years, and 90 days before the expiry of the permit, a reminder is sent.

Also, a fee of $200 is charged for the renewal of the license, and the renewal application can be filed either online or offline.


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