Texas General Contractor License: How to Become a Certified General Contractor in TX

Do you need a general contractor license in Texas?

You do NOT need a state license to be a general contractor in Texas, but that is only part of the story. There are local regulations you need to consider in order to be able to manage construction jobs across Texas. These include different types of licenses and registration with local government offices and trade boards.

Additionally, if you are an electrician, plumber, or HVAC contractor, you will need to be properly licensed by the state. You’ll also need the right license to provide electrical, plumbing, and HVAC services—even if you don’t label yourself as a contractor or technician in these fields.

Types of contractor licenses

There is no general contractor license in Texas, as you don’t need a state license to manage construction jobs. You also don’t need to be licensed as a handyman or builder. However, there are specific contractor licenses for electricians, plumbers, and HVAC contractors. 

Electricians and HVAC contractors are licensed by the Texas Department of Licensing & Regulations (TDLR), while plumbers are licensed by the Texas State Board of Plumbing Examiners (TSBPE).

Each license allows you to provide electrical, plumbing, or HVAC services. Each license has different levels that you can earn and upgrade with more experience.

Electrician licenses: 

• Electrical contractor
• Electrical sign apprentice
• Electrician apprentice
• Journeyman electrician
• Journeyman industrial electrician
• Journeyman lineman
• Journeyman sign electrician
• Maintenance electrician
• Master electrician
• Master sign electrician
• Residential appliance installation contractor
• Residential appliance installer
• Residential wireman

Plumbing licenses:

• Master responsible plumber
• Master plumber
• Journeyman plumber
• Tradesmen-plumber limited
• Plumbing apprentice
• Plumbing inspector

HVAC licenses:

• HVAC technician
• HVAC contractor

Texas general contractor license requirements

The main requirement for general contractors in Texas is to register your business. This is done at the state and/or local level, depending on your business structure, and ensures you are legally allowed to manage construction in your service area.

As there is no state license for general contractors in Texas, there are no age, education, experience, application, or exam requirements.

How to get a Texas general contractor license

Without the need for a general contractor’s license in Texas, you need to look to other common regulations to offer general contracting work. The first step is to register through the Secretary of State’s Business Service Portal.

If you are an electrician, plumber,  HVAC contractor, or providing those services as part of your general contracting, you will need to get state licenses.

Here are a few examples of the pathways to electrician, plumbing and HVAC contractor licenses.

Master electrician license

To become a master electrician in Texas, you’ll need to work as a journeyman for a minimum of 2 years. You also need to provide proof of 12,000 hours of work experience under the supervision of a licensed master electrician.

Once your experience is complete, submit your application and pass a 2-part exam with a score of 70% or better. The application fee is $45, and the exam fee is $156.

Master plumbing licence 

To become a master plumber in Texas, you must be a journeyman for at least 4 years, or have 1 year of experience as a journeyman and a combination of approved training courses or a master plumbing license in another state.

Then, submit an application for examination, pass the exam, and pay a $75 licensing fee.

HVAC contractor license: 

To become an HVAC contractor in Texas, you must have at least 4 years of practical work experience or 12 months as a certified HVAC technician and 3 years of experience under the supervision of a licensed HVAC contractor.

Once you’ve gained enough experience, you need to submit an application and pass a licensing exam with a score of 70% or better, and provide proof of general liability insurance. There is an application fee of $115.

Does my Texas general contractors license work in any other states?

Many states recognize valid contractor licenses from another state as reciprocal, which means you can get a license based on previous qualifications and licensure from another state without retaking any exams.

Texas recognizes a valid license from another state as a substitute for work experience in electrician, plumbing, and HVAC licenses, but does not have any reciprocal agreements with other states for general contractors.

City and municipal licenses

While there is no state-wide general contractor license in Texas, there are rules and regulations to abide by at the local level. Depending on the area, you may need a contractor license bond to ensure compliance, hold the right insurance to provide contracting services, or register directly with a municipal office. 

The rules differ from location to location, and it’s important you know before you establish your business in a region. Check with local governments—through their offices or websites—to make sure you have a good understanding of the requirements for general contract work.

Here are a few examples of the steps you need to take to be a general contractor in major cities in Texas:

Austin

After registering with the state, general contractors in Austin have to register with the Building and Trade Contractor Services (BTCS) department to get a Building or Trade Permit.

With the Building or Trade Permit, you are responsible for:

• Activating your building permit 
• Paying any fees for the permit
• Doing the work that was approved in your permit application
• Booking inspections when needed, including the final inspection
• Getting a Certificate of Occupancy (CO) or Certificate of Completion (CC), if needed
• Keeping track of any smaller permits for trades like plumbing or electrical, if they apply

Dallas

In Dallas, you have to register as a general contractor through the city’s Housing & Community Development office. To register, submit an application and pay an annual fee of $120. As part of the application, you need to provide proof of a place of business through a Home Occupancy Declaration.

Dallas is very explicit in its definition of general contracting work. It includes:

• Residential general contractor 
• Commercial general contractor
• Roofing contractor
• Fence contractor
• Foundation contractor
• Demolition contractor
• Pool contractor

You also need to provide proof of liability insurance, workers’ compensation insurance, and commercial auto insurance.

Houston

Houston does not have any licensing requirements for general contractors. Instead, the city evaluates and permits general contracting work on a job-by-job basis. The Houston Permitting Center website allows you to provide the information for your job and gives you guidance on the permits you’ll need to proceed.

If you’re running a general contracting business in Houston, you’ll need to register the business through the city’s Department of Administration & Regulatory Affairs. As part of your business registration, you may need to provide proof of insurance, such as general liability, workers’ compensation, and commercial auto. 

San Antonio

San Antonio offers 2 pathways to register as a general contractor—both through the city’s Development Services Department.

You can register as either a home improvement contractor or a residential building contractor. If you’re doing mostly home renovation work and general maintenance, you would be covered under the home improvement contractor. If the contracting involves structural work, then you will need to register as a residential building contractor.

You’ll need to provide proof of liability insurance if you’re registering as a residential building contractor.

Licensing penalties

Operating without a license or with an expired license comes with serious penalties in Texas. Electricians, plumbers, and HVAC contractors operating without a valid license are at risk of fines from $1,000 to $5,000, as well as a 1-year suspension or license revocation.

How to start a general contracting business

Now that you understand the state requirements and many of the major local processes needed to get the proper licensing, you’re more prepared than ever to start a general contracting business.

It starts with choosing your business structure—sole proprietorship, partnership, corporation, or LLC—-and then registering with the right state and local offices. 

From there, you have a handful of steps we recommend to get you started on the right foot. These steps include:

• Choose what contracting services you’ll offer
• Develop a business plan
• Set up your legal business framework
• Get licensed and insured
• Open a business bank account
• Build your team
• Get your essential tools and equipment
• Price your services
• Get your first contracting customers

To learn more about starting and running a successful contracting business, read our helpful guide.

Does getting a general contractor license increase your earning potential?

Yes, getting your general contractor license in Texas gives you the opportunity to earn more money, and it starts with your ability to perform general contracting work. Without the right licenses, business registration, insurance, and more, you can’t work as a general contractor or operate a general contracting business.

If you are a licensed and working general contractor, you stand to make more money through experience and growth, as well as upgrading specialty licenses like electrician, plumbing, and HVAC contractor licenses.

A general contractor in Texas makes an average salary of $58,858 per year. The bottom 10% of earners make between an estimated $27,000-$34,000, while the top 3% make from $93,000-$100,000—largely as a result of gaining experience, growing your own business, or moving up within an already established company.

To learn more, refer to our guide on “How to make money in construction and remodeling.”