North Carolina contractor license requirements
If you want to offer your skills for larger projects, you can get a contractor license from the state licensing board. To apply for a North Carolina general contractor license, you must fulfill the following requirements:
- Be at least 18 years of age
- Possess good moral character (as determined by the Board)
- Provide evidence of financial responsibility (as determined by the Board)
- Plan to bid on, construct, superintend or manage projects costing $40,000 or more
Financial requirements
When you fill out your license application, you must select a limitation based on your business finances. There are three limitation categories available:
- Limited license (for projects up to $500,000 each): Requires $17,000 working capital, $80,000 net worth or a $175,000 surety bond
- Intermediate license (for projects up to $1,000,000 each): Requires $75,000 working capital, an audited financial statement or a $500,000 surety bond
- Unlimited license (for projects of any size): Requires $150,000 working capital, an audited financial statement or a $1,000,000 surety bond
Learn more about contractor surety bonds.
How to get a contractor license in North Carolina
Complete the following steps to get your North Carolina general contractor license:
Register with the Secretary of State
Before you begin the application process, make sure to register your business with the North Carolina Secretary of State. For the application, you must have copies of the Articles of Organization, Articles of Incorporation or Certificate of Authority.
Submit your application
When filling out the application, note which license classification you plan to test for, such as Building Contractor or Residential Contractor, and select your license limitation. You must also include three character references.
Pass the licensing exam
Upon approval of your application, you may schedule your licensing exam through the test administrator, PSI. You must take the exam that corresponds to your chosen license classification and achieve a score of 70% or higher to pass.
In addition to the PSI exam, the Board also accepts a passing score on the National Accredited Building Examination administered by the National Association of State Contractors Licensing Agencies (NASCLA).
Contractor license renewal
North Carolina general contractor licenses expire on January 1 of each year. You may renew your license as early as October of the year prior. The Board issues licenses year-round, so you must renew licenses issued in December for the following year.
You must complete eight hours of continuing education to qualify for renewal. When renewing your license, you must provide a current financial statement.
What kind of insurance does a handyman need in North Carolina?
Protecting your business is a top priority whether you work as a handyperson or a licensed general contractor. With the right insurance coverage, your business can remain financially stable even if accidents happen.
Review the following types of business insurance recommended for handypeople and general contractors in North Carolina.
General Liability insurance
General liability insurance helps cover costs related to certain types of accidents involving a third party, such as damage to someone else’s property or an injury to someone other than an employee.
Many handyman and contractor clients request proof of general liability insurance coverage before they agree to hire someone for a job.
Workers’ Compensation insurance
Workers’ compensation insurance provides important protections for your business if workplace injuries occur. This coverage helps pay for medical expenses, lost wages and other benefits if an employee gets hurt on the job.
In North Carolina, all businesses with three or more employees must have workers’ compensation insurance or qualify as self-insured employers.
Tools and Equipment insurance
Most handypeople and contractors have work gear that is essential for their projects. Tools and equipment insurance protects that gear by helping to pay for repairs or replacements for damaged or stolen items.
Commercial Auto insurance
If you use a work vehicle to drive to different job sites, you should have commercial auto insurance. If you get into an accident while driving your vehicle for work, this coverage can help pay for towing, repairs, rental reimbursement and other related expenses.
North Carolina requires all vehicles to have insurance coverage. The minimum coverage amounts are:
- $30,000 for bodily injury liability per person
- $60,000 for bodily injury liability per accident
- $25,000 for property damage
Commercial Property insurance
Commercial property insurance helps cover damage or vandalism to a property you own or rent and any inventory and equipment stored in that location.
How NEXT Insurance supports North Carolina handypeople
NEXT Insurance offers affordable and convenient small business insurance options for handypeople and contractors. We customize every insurance package to help protect your business.
You can start a quote from any computer or mobile device, compare coverage options and get a certificate of insurance for your business. Log in anytime to download and share unlimited COIs at no extra cost or make adjustments to your coverage.
Ready to get started? Get an instant quote online from NEXT today.
Do you have handyman projects outside North Carolina? Find out which states require licenses in our summary of handyman license requirements.
This information has been provided as a service. It is correct and up-to-date to the best of our knowledge; however, it is in no way intended to offer legal advice and you must always consult with local authorities before you make any business decisions. Regulations and requirements may change at any time.