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Contractor Licensing Requirements in Minnesota

Minnesota requires a statewide DLI license for most residential contractors, backed by a Contractor Recovery Fund instead of a bond. Trade Safe gets your coverage in place fast.

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Contractor Licensing Requirements in Minnesota

Minnesota is one of the few states with a true statewide residential contractor licensing system, run centrally by the Department of Labor and Industry (DLI) rather than by counties or cities. Whether you’re framing new homes or remodeling existing ones, DLI decides which license class you need and sets the exam, insurance, and continuing education rules that keep it active.

Minnesota’s Contractor Licensing System

The Minnesota Department of Labor and Industry (DLI) licenses Residential Building Contractors, Residential Remodelers, Residential Roofers, and Manufactured Home Installers statewide. A license is required if you contract directly with a homeowner and your work covers two or more of DLI’s eight defined special skills, such as carpentry, masonry, and excavation. Separate trade licenses for electrical work and plumbing are issued through different bodies — the Board of Electricity and DLI’s plumbing program, respectively — rather than the residential contractor track.

License Classes in Minnesota

Residential Building Contractor (BC) — new construction plus remodeling work
Residential Remodeler (CR) — work limited to existing structures only
Residential Roofer — roofing-only contracting work
Manufactured Home Installer — installation of manufactured/mobile homes

Exam & Experience Requirements

Each license is held by the business, with one qualifying person (an owner, officer, member, partner, or managing employee) responsible for passing the required exam. The Qualifying Builder (QB) exam applies to Building Contractor licenses and the Qualifying Remodeler (QC) exam applies to Remodeler licenses; each is 110 multiple-choice questions requiring a 70% passing score. Minnesota does not impose prerequisite work experience or education requirements before sitting for the exam.

NASCLA Reciprocity

Minnesota is not a NASCLA-participating state, so a NASCLA Accredited Examination credential from another state will not exempt a qualifying person from Minnesota’s own QB or QC exam.

Bonding & Insurance to Get Licensed

Instead of a traditional surety bond, Minnesota requires every licensee to pay into the DLI Contractor Recovery Fund, a pooled indemnity fund that compensates harmed homeowners. General liability insurance is also required as a condition of licensure, though the specific coverage minimums are covered in detail on our Minnesota trade pages.

For exact GL and workers’ comp dollar minimums required to get licensed, see Insurance Minimums to Get Licensed.

Reciprocity with Other States

Minnesota does not offer formal license reciprocity or exam waivers for contractors licensed in other states; every qualifying person must pass Minnesota’s own QB or QC exam regardless of out-of-state credentials.

Minnesota Licensing Fees & Timeline

Item	Cost / Time
Base license fee	$180
Recovery Fund fee (under $1M receipts)	$320
Recovery Fund fee ($1M–$5M receipts)	$420
Exam	110 questions, 70% to pass
Typical processing time	2-4 weeks after exam and application approval
Renewal cycle	Annual — all licenses expire March 31 regardless of issue date
Continuing education	14 hours/year, including 1 hour energy code + 1 hour building code

Penalties for Unlicensed Contracting

Operating as a residential contractor, remodeler, or roofer without a valid DLI license is a misdemeanor under Minn. Stat. § 326B.082, subd. 16, and DLI can levy civil penalties commonly in the $2,000-$5,000 range for a first offense, with statutory exposure up to $10,000 and potential criminal referral for repeat violations.

Resources: MN DLI Residential Contractor Licensing, MN DLI Contractor, Roofer & Remodeler Exams, Minnesota Statutes Chapter 326B

Frequently Asked Questions

Does Minnesota require a statewide contractor license?

Yes. Minnesota is one of the few states with true statewide licensing for residential contractors, remodelers, and roofers, administered entirely by DLI rather than by individual cities or counties.

What’s the difference between a Building Contractor and Remodeler license in Minnesota?

A Residential Building Contractor (BC) license covers new construction and remodeling, while a Residential Remodeler (CR) license is limited to work on existing structures only.

Does Minnesota require a surety bond for contractors?

No traditional surety bond is required. Instead, licensees pay into the DLI Contractor Recovery Fund, a pooled fund that compensates homeowners harmed by licensee misconduct.