How to Get a Contractor License in Michigan
Last updated: March 1, 2026
Michigan is a recovering market with opportunities across Detroit, Grand Rapids, and university towns, making it an excellent place to start a career as a contractor. Whether you're looking for a career change or entering the workforce for the first time, obtaining your contractor license in Michigan is a structured process overseen by the Michigan Department of Licensing and Regulatory Affairs (LARA).
With only 60 hours of pre-license education required, Michigan has a relatively accessible path to licensure. Budget between $500 and $1,000 for the total licensing process, including education, application, and exam fees. Most aspiring contractors complete the entire process in 2-4 months, depending on how quickly they move through the coursework and exam preparation.
Michigan Contractor License Requirements
| Requirement | Details |
|---|---|
| Minimum Age | 18 years old |
| Pre-License Education | 60 hours |
| Degree Required | No |
| Exam Required | Yes — Michigan Residential Builder Exam |
| Passing Score | 70% on each section |
| Background Check | Yes |
| Broker Sponsorship | Not required |
| Application Fee | $185 |
| Exam Fee | $79 |
| Governing Body | Michigan Department of Licensing and Regulatory Affairs (LARA) |
| License Reciprocity | None |
Steps to Get Your Contractor License in Michigan
- 1
Complete 60 Hours of Pre-License Education
60 hours of approved pre-license education, or an equivalent combination of education and experience. Courses may be available online or in-person.
Time: 1-3 months Cost: $350 - 2
Submit Your License Application
Apply through the Michigan Department of Licensing and Regulatory Affairs (LARA). You'll need proof of experience, financial statements, and insurance documentation. The application fee is $185.
Time: 2-6 weeks for processing Cost: $185 - 3
Pass the Michigan Residential Builder Exam
Schedule and pass the contractor licensing exam administered by PSI. You must score at least 70% on each section to pass. Study the relevant trade and business/law sections.
Time: 2-4 weeks to prepare and take Cost: $79 - 4
Obtain Required Insurance and Bonding
Most states require general liability insurance and a surety bond before your license is activated. No sponsorship required
Time: 1-2 weeks - 5
Receive Your Contractor License
Once you've passed the exam and met all requirements, the Michigan Department of Licensing and Regulatory Affairs (LARA) will issue your contractor license. You can then legally perform contracting work in Michigan.
Time: 1-4 weeks
Key Things to Know
- Education requirement: 60 hours of approved pre-license education, or an equivalent combination of education and experience.. Many providers offer online options, giving you flexibility to study on your own schedule.
- The licensing exam: The Michigan Residential Builder Exam is administered by PSI. You'll need to score at least 70% on each section to pass. Study materials and practice exams are available from most education providers.
- Ongoing requirements: Once licensed, you'll need 21 hours of continuing education every 3 years. 21 hours of continuing education every 3 years, including 3 hours of building code updates.
How Much Does a Contractor License Cost in Michigan?
| Cost Item | Estimated Range |
|---|---|
| Pre-License Education | $300 - $700 |
| Application Fee | $185 |
| Exam Fee | $79 |
| Total Estimated Cost | $500 - $1,000 |
License Renewal
- Renewal Period: Every 3 years
- Continuing Education: 21 hours
- CE Details: 21 hours of continuing education every 3 years, including 3 hours of building code updates
- Renewal Fee: $185
Tips for Success
- Choose your education provider carefully: Compare prices, format (online vs. in-person), and reviews. Some providers offer exam prep materials bundled with the course, which can save you money. Check the Michigan Department of Licensing and Regulatory Affairs (LARA) website for a list of approved providers.
- Don't rush the exam: At just 60 hours, the education requirement is on the lower end — you could realistically complete it in 4-8 weeks of focused study. Use practice exams to identify weak areas before scheduling your test date.
- Get your insurance and bonding lined up early: No sponsorship required General liability insurance and a surety bond are typically required. Shop multiple providers and consider joining a local contractors' association for group rates.
- Budget for startup costs beyond licensing: Beyond the $500-$1,000 licensing cost, plan for insurance premiums, bonding, tools and equipment, vehicle costs, and marketing. Most new contractors should budget an additional $5,000-$15,000 for their first year of business expenses.
Frequently Asked Questions
How long does it take to get a contractor license in Michigan?
Most people complete the process in 1-3 months total. The pre-license education (60 hours) takes the longest. After completing education, the exam and application process typically adds 2-6 weeks.
How much does it cost to get a contractor license in Michigan?
The total cost ranges from $500 to $1,000, including pre-license education, the application fee ($185), and the exam fee ($79).
Can I get a Michigan contractor license with a criminal record?
The Michigan Department of Licensing and Regulatory Affairs (LARA) evaluates criminal history on a case-by-case basis. Having a criminal record does not automatically disqualify you, but certain offenses may affect your eligibility. Contact the Michigan Department of Licensing and Regulatory Affairs (LARA) for guidance before applying.
Do I need a college degree to become a contractor in Michigan?
No. Michigan does not require a college degree. You only need to complete the 60 hours of approved pre-license courses.
Can I take the pre-license courses online in Michigan?
Many approved education providers offer pre-license courses online, allowing you to study at your own pace. Check the Michigan Department of Licensing and Regulatory Affairs (LARA) website for a list of approved providers.