Michigan General Contractor License: Requirements, Costs, and How to Get Certified in 2026

Do you need a general contractor license in Michigan?

Yes. You need a general contractor license in Michigan to work on any residential project valued at more than $600, including both materials and labor.

The limit is firm. It’s against the law to break a larger contract into pieces under $600 to avoid getting licensed. The Department of Licensing and Regulatory Affairs (LARA), through its Bureau of Construction Codes, oversees general contractor licensing in the state.

Benefits of getting a Michigan contractor license 

A license lets you legally bid on nearly every residential job in Michigan, not just the small ones. Without it, you’re capped at projects worth $600 or less.

Beyond the legal side, a license does a few things for your business:

• Bigger, higher-paying jobs. Licensed builders can take on full residential builds, additions, and remodels instead of odd jobs.
• Customer trust. Many homeowners check the state license lookup before hiring, so a valid license helps you win work.
• Fewer legal risks. Working licensed keeps you clear of the fines and penalties that come with unlicensed work.
• Easier permitting and insurance. Local building departments and insurers often ask for your license number before you can pull permits or bind coverage.

Types of contractor licenses in Michigan

Michigan issues two residential license types through LARA, the Residential Builder license and the Maintenance & Alteration Contractor license. Which one you need depends on the scope of your work.

Michigan general contractor license requirements

Before you apply, you need to meet a few basic prerequisites and finish your education. Here’s what the state requires.

Basic prerequisites 

These requirements are set by the state and reflected on the license application. All applicants must:

• Be at least 18 years old.
• Have a valid state-issued ID.
• Have a Michigan business address. Out-of-state applicants must submit a Consent to Service of Process form.

60-hour prelicensure course

To qualify for your Michigan general contractor license, you’ll also have to take and pass an approved 60-hour prelicensure course. At least six hours of instruction must come from each of these areas:

• Business management, estimating, and job costing
• Design and building science
• Contracts, liability, and risk management
• Marketing and sales
• Project management and scheduling
• The Michigan Residential Code
• Michigan Occupational Safety and Health Act (MIOSHA) construction safety standards

The rest of your hours can come from LARA’s current list of approved courses, which you’ll find on the state’s prelicensure education page. Courses run through both in-person schools and self-paced online providers, so pick the format that fits your schedule. Always confirm a program is state-approved before you pay.

Most cities don’t add their own licensing on top of the state requirement. A few do, though. Grand Rapids, for example, asks state-licensed contractors to register with the city before pulling permits, so check with your local building department before you start a job.

How to get a general contractor license in Michigan

Once you’ve finished your course, getting licensed comes down to five steps:

1. Complete your 60 hours of prelicensure coursework.
2. Fill out the Residential Builder or Maintenance & Alteration Contractor application.
3. Provide a copy of your personal identification and proof of a Michigan business address.
4. Pay the $195 license fee. (Veterans may be exempt. See below.)
5. Submit everything to LARA.

Most applicants now apply and pay online through LARA’s Accela permitting portal. If you’d rather mail your application, send it to the Bureau of Construction Codes, Licensing Division, P.O. Box 30255, Lansing, MI 48909.

After LARA reviews your complete application, the department approves you to sit for your Residential Builder or M&A Contractor exam.

Veteran fee exemption: If you can show your separation from the armed forces was “honorable” or “general under honorable conditions,” you’re exempt from the license fee, per the LARA application. Include a copy of your Form DD-214 or DD-215 in place of the payment.

Michigan general contractor exam

After LARA approves your application, you can register online for either the Residential Builder exam or the Maintenance & Alteration Contractor exam through PSI, the state’s testing provider. You must pass within one year of your approval date, or you’ll have to reapply and pay again.

How long does it take to get a Michigan contractor license? 

Plan on roughly 8 to 12 weeks from start to finish, though it can take longer depending on your pace and LARA’s processing times.

Here’s how the timeline usually breaks down:

• Prelicensure course: A few days to several weeks, depending on whether you take it in person or self-paced online.
• Application review: After you apply through LARA, it can take several weeks for the department to process your application and approve you to test.
• Exam and license: Once you pass, LARA issues your license, often digitally.

If you want to be on a worksite soon, start your course early. The full process can stretch toward a year if you delay any step, since your exam approval is only valid for one year.

How much does a general contractor license cost in Michigan?

Expect to pay a little more than $300 to get started. The $195 application fee plus the $117 Residential Builder exam comes to $312, before your course. Keep in mind that $195 is the license fee itself. The higher figure is your combined startup cost.

Your prelicensure course is a separate cost. Approved 60-hour courses generally run a few hundred dollars, depending on the provider and format.

Do you need insurance or a bond as a Michigan contractor?

You’ll likely need general liability coverage to work. Local building departments, lenders, and clients commonly require proof of general liability insurance before you can pull a permit or sign a contract, and some trades and jurisdictions set their own bonding rules.

Before applying, confirm current state-level insurance and bonding requirements directly with LARA and Article 24 of the Michigan Occupational Code. Carrying liability insurance protects your business from claims, and most established contractors treat it as a cost of doing business rather than an option.

Does a Michigan general contractor license work in any other states?

No. Michigan doesn’t hold reciprocal agreements with any other state, so an out-of-state license won’t transfer here.

If you hold a contractor license elsewhere and want to work in Michigan, you’ll need to meet all the Residential Builder or M&A Contractor requirements and apply for a new license here from scratch.

How to renew your general contractor license in Michigan 

Residential Builder and M&A Contractor licenses must be renewed every three years by May 31. You can renew online through LARA’s Accela portal, and you can start up to 90 days before your license expires. LARA now sends renewal reminders by email, so keep your contact information current with the state.

To renew, you’ll need to meet Michigan’s continuing competency requirements (CCRs). Every licensee completes at least three hours each renewal period:

• One hour on building codes and laws
• One hour on safety
• One hour on changes in construction and business management laws

If you’ve been licensed fewer than six years, you need more. That’s 21 hours of CCRs in each of your first two three-year periods, with at least three hours completed each year.

You can use Michigan’s license lookup tool to confirm your license issue date.

What happens if my general contractor license expires? 

If your license has expired, stop all general contracting work right away. Working on an expired license opens you up to fines, penalties, and even legal action. Depending on the offense, fines for operating without a valid license range from $5,000 to $25,000, and jail time is possible.

If you miss the renewal deadline, you can still pay your renewal fee plus a $20 late fee for up to 60 days after your license expires. Different rules apply after 60 days, when you’ll likely need to go through re-licensure. For the details, see the Michigan Occupational Code.

How to start a contracting business in Michigan 

Once you hold your Residential Builder or M&A Contractor license, you can start building your own contracting business.

First, register your business with the Department of Treasury to get the tax license and permits you need to operate. If you’re operating under a “doing business as” name, register that name through Michigan’s corporations division. For broader startup help, the state’s business assistance guide is a solid starting point.

From there, the day-to-day of running the business comes down to a few essentials:

• Pricing your jobs so you actually turn a profit
• Setting up financing and a bookkeeping system
• Lining up equipment and reliable suppliers
• Generating leads for new work

Once the jobs start coming in, staying organized is what keeps you profitable. Contractor software like Jobber handles quotes, scheduling, invoicing, and payments in one place, so you can spend less time on paperwork and more time on the tools.