Contractor Licensing Requirements in Michigan

Michigan contractors don’t get a patchwork of county rules – the state runs one centralized licensing system through the Department of Licensing and Regulatory Affairs (LARA). Before you can pull permits or sign residential contracts, you’ll need to clear prelicensure education, pass a two-part exam, and carry the right insurance. Here’s how the system actually works.

Michigan’s Contractor Licensing System

Michigan’s Residential Builders and Maintenance & Alteration Contractors Board, operating under LARA’s Bureau of Construction Codes, licenses anyone who builds, alters, or repairs residential structures for compensation. Commercial-only work generally falls outside this system, but electrical, plumbing, and mechanical trades are licensed separately through their own LARA boards regardless of residential or commercial scope.

License Classes in Michigan

• Residential Builder (RB) – for contractors who oversee or perform new residential construction and major remodeling
• Residential Maintenance & Alteration Contractor (MAC) – a narrower license for repair, maintenance, and smaller alteration work on existing residential structures
• Electrical, Plumbing, and Mechanical licenses – issued by separate LARA trade boards with their own exams and requirements, independent of the RB/MAC system
• Specialty endorsements (e.g., roofing under a proposed license or as part of RB scope) – check current LARA rules, as specialty licensing has been evolving

Exam & Experience Requirements

Applicants must complete 60 hours of LARA-approved prelicensure education covering business management, estimating, contracts, and code topics before sitting for the exam. Both the trade/technical exam and the business/law exam are administered by PSI and must be passed with at least 70% each (scores aren’t averaged), typically taking a combined 4-5 hours.

NASCLA Reciprocity

Michigan is not a NASCLA-participating state, so a NASCLA Accredited Examination credential from another state will not exempt you from Michigan’s own exam and education requirements.

Bonding & Insurance to Get Licensed

Michigan does not require a surety bond to obtain a Residential Builder or M&A Contractor license, unlike many other states. LARA does require proof of general liability and workers’ compensation coverage as part of licensure – Trade Safe’s state-and-trade combo pages break down the exact minimums for your specific trade.

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

Reciprocity with Other States

Michigan does not offer broad reciprocity agreements with other states for the RB or MAC license – nearly all applicants must complete Michigan’s own prelicensure education and pass its state-specific exams, regardless of licensing held elsewhere.

Michigan Licensing Fees & Timeline

Penalties for Unlicensed Contracting

Performing residential contracting without a license in Michigan is a misdemeanor that can carry fines up to $10,000 and up to 2 years imprisonment under MCL 339.2412, and unlicensed contractors generally cannot enforce construction contracts in Michigan courts. Broader Occupational Code violations escalate from a $500 first-offense fine to a felony with up to $25,000 in fines and 5 years imprisonment for repeat violations (MCL 339.604).

Resources: LARA Residential Builders Licensing Section, LARA License Fees, Michigan Occupational Code (Act 299 of 1980)

Frequently Asked Questions

Licensing rules and fees change periodically – always confirm current requirements directly with LARA before applying.