Per the Tennessee Board for Licensing Contractors, anyone acting as a prime contractor on a project totaling $25,000 or more must hold a BLC contractor's license. Masonry subcontractors have a higher trigger — a license is required only once the masonry portion of a job reaches $100,000 or more. Residential projects priced between $3,000 and $25,000 fall under the separate Home Improvement license described below, and general work under $3,000 typically requires no state license, though local permitting rules can still apply.

Every BLC classification except the restricted residential license (BC-A/r) requires passing the Business & Law exam, plus a classification-specific trade exam. Beginning July 1, 2026, exams are administered by Prov rather than the prior provider; plumbing and full mechanical trade exams additionally require Board pre-approval and a $50 fee before scheduling. Financial requirements scale with the requested monetary limit: a reviewed financial statement is required for limits of $3,000,000 or less, and an audited statement is required above that amount. Starting July 1, 2026, applicants also have the option to substitute a surety bond equal to 50% of the requested limit in place of a financial statement.

Tennessee accepts the NASCLA Accredited Examination as a trade exam waiver for applicants who already hold a NASCLA-recognized credential — but NASCLA only replaces the trade exam. Every applicant, NASCLA or not, still must pass Tennessee's own Business & Law exam.

Tennessee's Home Improvement license covers residential projects priced from $3,000 up to (but not including) $25,000. No exam is required. Applicants need $100,000 minimum general liability insurance, workers' compensation coverage for any employees, a $10,000 bond (surety, cash, property, or letter of credit), a written contract containing specific statutory language, and Secretary of State business registration for entities. The license costs $250 for a two-year term. It explicitly does not cover electrical, gas, mechanical, HVAC, or plumbing work — those trades require their own BLC or Limited Licensed credential regardless of project size.

BLC contractor licenses are biennial, expiring every two years on the last day of the month in which they were issued. The initial application fee is $250; renewal costs $200. Late renewals incur a $20-per-month penalty, up to 12 months. Residential (BC-A and related) license holders must submit proof of 8 hours of Residential Continuing Education from a Board-approved provider with each renewal — only one Qualifying Agent per company needs to complete it, even if the entity has multiple residential QAs.

Tennessee waives the trade exam for applicants who hold a comparable license from Alabama, Arkansas, Louisiana, Mississippi, North Carolina, Ohio, South Carolina, or West Virginia, as well as for holders of a NASCLA-accredited exam score. The waiver applies only to the trade portion — with the narrow exception of the restricted residential classification, every applicant, reciprocal or not, must still pass the Tennessee Business & Law exam.

Already hold a BLC classification, Home Improvement license, or LLE/LLP credential? Get added to our list of qualifiers available to license businesses that need a qualifying party in Tennessee.

Tennessee's state-level bonds cover the BLC contractor license ($500,000 and $1,000,000 limits), Home Improvement license ($10,000), and Fire Protection Sprinkler System Contractor ($10,000). The rest are local municipal bonds required by cities like Nashville, Memphis/Shelby County, Knoxville, Hendersonville, and others — always confirm which apply to your specific job site.

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