Contractor licensing — Tennessee

Tennessee's contractor licensing structure is split by project dollar amount. The Tennessee Board for Licensing Contractors (in the Department of Commerce and Insurance) issues the Tennessee Contractor License for projects at or above $25,000 and the Limited Licensed Electrician (LLE) and Limited Licensed Plumber (LLP) credentials for lower-value work. Tennessee Contractor License ($25,000 and above). Issued to the business entity with a company qualifier who has passed a trade exam and the Business and Law exam (both administered by PSI Services, 70 percent passing). Classifications include BC (Building Construction), CE (Electrical Contractor), CMC (Mechanical Contractor, with Plumbing, HVAC, and other sub-classifications), and several specialty codes. Financial showing: monetary limit is set at 10 times working capital or net worth shown on a reviewed financial statement, up to the classification cap. A $100,000 contractor license bond can supplement the monetary limit. Limited Licensed Electrician (LLE). For electrical work where the electrical portion of a project is less than $25,000. Exam-only credential (40 questions, 2 hours, 72.5 percent passing, $57 exam fee, $50 biennial license fee). No Business and Law exam is required. The LLE is NOT accepted in counties operating their own codes office (Davidson, Hamilton, Knox, Shelby, and others). Limited Licensed Plumber (LLP). For plumbing and non-medical gas piping where the total job cost is less than $25,000. Requires 2,000 hours of documented experience and a 40-question exam (2 hours, 73 percent passing). The following counties DO NOT require a state LLP for work under $25,000 (published Board exemption list): Benton, Decatur, Dickson, Giles, Henderson, Henry, Hickman, Humphreys, Lake, Lawrence, Lewis, Obion, Perry, Stewart, and Weakley. Home Improvement Contractor (HI). Residential remodeling $3,000 to $24,999 in counties that have opted into the program. Requires application, bond, and exam. Local overlay. Many Tennessee cities and counties operate their own codes office with separate registration and inspection rules. Always confirm local acceptance of a state credential before bidding or pulling permits. Business registration. LLCs and corporations register with the Tennessee Secretary of State. The Tennessee Department of Revenue administers the franchise and excise taxes (minimum franchise $100).