Contractor licensing in Pennsylvania

Pennsylvania has no statewide general contractor license. Instead, the state runs a registration regime for home improvement work, and the trades are licensed city-by-city and county-by-county. Three layers matter for most trades contractors starting a business here. Layer 1. Statewide Home Improvement Contractor (HIC) registration. The Pennsylvania Home Improvement Consumer Protection Act (HICPA), codified at 73 P.S. §517.1 et seq. (Act 132 of 2008), requires anyone who performs home improvements valued at $5,000 or more in a calendar year on residential property to register with the Office of Attorney General, Bureau of Consumer Protection, before doing the work. The application instructions (revised 2/18/26) confirm the $5,000 calendar-year threshold and that home improvement retailers with a net worth of $50 million or more are exempt (subcontractors and independent contractors working for those retailers still must register). - Registration fee. A $100 check or money order payable to the Commonwealth of Pennsylvania, non-refundable, per the current application checklist. Prior cycles used a $50 fee; the current instructions posted by the Attorney General reflect $100. - Insurance floor at registration. HICPA section 517.4 requires a Commercial General Liability certificate showing at least $50,000 bodily injury / personal injury coverage and at least $50,000 property damage coverage. Self-insurance is permitted only with an attached Self-Insurance Certificate of Coverage and Attestation accepted by the Bureau. - Registration number on every advertisement, contract, estimate, and proposal. A contract for a home improvement project of $500 or more must be in writing and contain the specific terms listed in 73 P.S. §517.7, including the HIC registration number and the three-day right of rescission. - Penalties. Failure to register or to comply with HICPA can result in civil and criminal penalties, and a non-compliant contract may be voidable and unenforceable against the homeowner. HIC registration is not a license to practice a trade. It is a consumer-protection registration. Local trade licensing sits on top of it. Layer 2. Philadelphia trade licenses (Department of Licenses and Inspections). If you will work in the City of Philadelphia, L&I issues the trade licenses directly. A Commercial Activity License and a Business Income and Receipts Tax (BIRT) ID are prerequisites for any L&I trade license. The three licenses most trades contractors need are: - Electrical Contractor License. Separately issued by L&I; an applicant must document the required electrical experience with a jurisdiction-licensed contractor and pass the Philadelphia Electrical Contractor Examination. Insurance requirements match the other trade licenses below. - Master Plumber License. Philadelphia Code §9-1003 / §9-1004 and Plumbing Code Appendix G govern the license. Applicants must either hold four years as a registered Philadelphia apprentice plumber plus at least one year as a licensed Philadelphia journeyman, or document five years of equivalent plumbing construction experience (at least one year at journeyman level). Applicants must also pass the Philadelphia Master Plumber Examination, administered by the International Code Council, within 12 months of application. Published fees: $50 non-refundable application fee plus $253 due on approval (initial total $303); annual renewal $253. Minimum insurance: $500,000 general liability per occurrence, $300,000 auto liability, and workers' compensation coverage. - Mechanical (HVAC) work. Philadelphia issues a general Contractor License (current fee $126, $20 of which is non-refundable) and specialty mechanical permits rather than a separate 'Mechanical Contractor' trade license in all cases. Mechanical permits and work on mechanical systems still require an active license, current city tax compliance, and insurance on file with L&I. Check the current L&I fee schedule for the specific license that fits your scope before you apply. Layer 3. Allegheny County plumbing (Pittsburgh region). Plumbing in Allegheny County is regulated by the Allegheny County Health Department under Article XV, the Allegheny County Plumbing Code. Three classes of license exist: Apprentice, Journeyman, and Master Plumber. The pathway is four years as a registered apprentice, followed by journeyman exam and licensure, followed by a minimum of two years working as a journeyman before sitting for the Master Plumber exam. The Health Department administers the exam twice a year. Published fees widely reported for Allegheny County: $133 journeyman exam fee and $125 annual journeyman license; $250 master exam application fee and $375 annual master license. Confirm current figures directly with the Health Department before applying. Allegheny County plumbers must renew annually. Other Pennsylvania cities (Pittsburgh non-plumbing trades, Harrisburg, Allentown, Erie, Scranton, and smaller municipalities) issue their own local licensing and permit rules. Always verify the specific municipality's requirements before quoting work there. What this means for a new Pennsylvania trades business. You will almost always need three things before you quote residential work: (1) the Commonwealth HIC registration, (2) the local trade license where the work will be performed, and (3) the insurance certificates those two require. The insurance page in this guide goes deeper on workers' compensation and on the higher liability limits that Philadelphia and commercial general contractors typically require.