At a Glance: Illinois Contractor License
| Item | Details |
|---|---|
| Licensing Board | Illinois Department of Financial and Professional Regulation (IDFPR) — Trade Licenses; City of Chicago — Local GC License |
| License Types |
|
| License Threshold | Illinois has no statewide GC license. Roofing requires an IDFPR state license for all projects. Plumbing requires state licensing. Chicago requires a City of Chicago contractor license for GC work within city limits. Most Illinois municipalities require local contractor registration for work within their jurisdiction. |
| Application Fee | $125–$300 for IDFPR trade licenses; $175–$450 for City of Chicago contractor license; varies by municipality for local registration |
| Exam Required | Yes |
| Exam Provider | IDFPR-approved exam for roofing; City of Chicago Dept. of Buildings for Chicago GC license; local exam for some municipalities |
| Exam Cost | $75–$200 depending on trade and jurisdiction |
| Experience Required | 2+ years in trade for state licenses; 3–5 years for City of Chicago GC license; varies by trade |
| Insurance Required | General Liability ($500,000 minimum for most municipalities; Chicago requires $1,000,000 minimum for GC license). Workers' Compensation required if you have employees (Illinois law). Surety bond: $10,000–$25,000 for Chicago GC license. Verify exact amounts with each jurisdiction. |
| License Renewal | IDFPR licenses: annual or biennial; City of Chicago GC license: annual ($175–$450 renewal fee) |
Step-by-Step: How to Get Your Illinois Contractor License
- Determine your primary work area: Chicago City limits, Chicago suburbs, or downstate Illinois — licensing rules differ significantly
- For roofing statewide: Apply for IDFPR Roofing Contractor license at idfpr.illinois.gov — requires exam, 2+ years experience, and $1M liability insurance
- For plumbing: Obtain Illinois licensed plumber or contractor status through IDFPR — required statewide for all plumbing work
- For City of Chicago GC work: Apply for City of Chicago General Contractor license through the Dept. of Buildings — requires Chicago Electrical Exam or trade equivalency, insurance documentation, and city registration fee
- For suburban Cook County and other municipalities: Register with each municipality where you work — requirements range from simple registration to full exam and insurance proof
- Obtain General Liability insurance ($1M minimum for Chicago; $500K for most suburbs) and Workers' Comp if you have employees
- If doing commercial work in Chicago: Ensure your electrical subcontractor has a valid City of Chicago Electrical Contractor license — Chicago does not accept state electrical licenses
- Register your business with the Illinois Secretary of State (LLC or corporation recommended for liability protection)
Exam Requirements
Provider: IDFPR-approved exam for roofing; City of Chicago Dept. of Buildings for Chicago GC license; local exam for some municipalities
Cost: $75–$200 depending on trade and jurisdiction
Topics covered: Illinois Building Code (IBC/IRC), Chicago Municipal Code (for Chicago work), Trade safety and installation standards, Business and law (contracts, lien rights, workers' comp), OSHA 10 or 30 (required for some jurisdictions)
Most state contractor exams test two main areas: Business & Law (contracts, lien law, workers' comp, licensing regulations) and Trade Knowledge (construction practices, building codes, safety). Prepare for both sections — even experienced contractors struggle with the Business & Law portion without dedicated study.
Study Resources
- PSI Candidate Handbook (available on PSI website — free, covers exactly what's on the exam)
- ICC Study Guides for code-based exams
- Contractor's Business & Law Study Guide by Craftsman Book Company
- Online prep courses from Contractor Exam Prep and similar providers
Insurance & Bonding Requirements
General Liability ($500,000 minimum for most municipalities; Chicago requires $1,000,000 minimum for GC license). Workers' Compensation required if you have employees (Illinois law). Surety bond: $10,000–$25,000 for Chicago GC license. Verify exact amounts with each jurisdiction.
Beyond what Illinois requires, consider these coverage types for complete protection:
- General Liability: Protects against third-party bodily injury and property damage claims
- Workers' Compensation: Required if you have employees; protects against job-site injury claims
- Commercial Auto: Your personal auto policy won't cover your work truck
- Inland Marine (Tools & Equipment): Covers tool theft from job site or vehicle
Reciprocity
Illinois has the following reciprocity agreements with other states:
No active reciprocity agreements.
Important: Reciprocity agreements change over time. Always contact the Illinois licensing board directly to confirm current reciprocity status before assuming your out-of-state license qualifies for expedited licensure.
Important Notes for Illinois
Illinois is a complex licensing state because there is NO statewide GC license — instead, each major city and county has its own requirements. Chicago is the most strict: the City of Chicago has its own contractor licensing system, separate from IDFPR, and specifically requires Chicago-licensed electricians (the state electrical license is not accepted in Chicago). Springfield, Rockford, Peoria, and other downstate cities each have local registration requirements. The IDFPR state licenses (roofing, plumbing, home inspector) apply statewide but do not substitute for local GC registration. Working in Chicago without a City contractor license is illegal and can result in stop-work orders, fines up to $10,000 per violation, and difficulty getting permits pulled.
Frequently Asked Questions
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Do I need a contractor license in Illinois?Yes. In Illinois, contractors are required to be licensed for projects valued at Illinois has no statewide GC license. Roofing requires an IDFPR state license for all projects. Plumbing requires state licensing. Chicago requires a City of Chicago contractor license for GC work within city limits. Most Illinois municipalities require local contractor registration for work within their jurisdiction.. The licensing is managed by the Illinois Department of Financial and Professional Regulation (IDFPR) — Trade Licenses; City of Chicago — Local GC License. Operating without a license can result in fines and inability to enforce contracts.
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How much does a Illinois contractor license cost?The application fee for a Illinois contractor license is $125–$300 for IDFPR trade licenses; $175–$450 for City of Chicago contractor license; varies by municipality for local registration. An exam fee of $75–$200 depending on trade and jurisdiction is also required for the IDFPR-approved exam for roofing; City of Chicago Dept. of Buildings for Chicago GC license; local exam for some municipalities exam. Renewal is IDFPR licenses: annual or biennial; City of Chicago GC license: annual ($175–$450 renewal fee).
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Is an exam required for a Illinois contractor license?Yes. Illinois requires passing the IDFPR-approved exam for roofing; City of Chicago Dept. of Buildings for Chicago GC license; local exam for some municipalities exam (cost: $75–$200 depending on trade and jurisdiction) covering Illinois Building Code (IBC/IRC) and Chicago Municipal Code (for Chicago work) and Trade safety and installation standards and Business and law (contracts, lien rights, workers' comp) and OSHA 10 or 30 (required for some jurisdictions). Passing the exam is a prerequisite before applying for your license.
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What insurance is required for a Illinois contractor license?Illinois requires the following insurance for contractor licensing: General Liability ($500,000 minimum for most municipalities; Chicago requires $1,000,000 minimum for GC license). Workers' Compensation required if you have employees (Illinois law). Surety bond: $10,000–$25,000 for Chicago GC license. Verify exact amounts with each jurisdiction.. This is the minimum required — most contractors carry higher limits for additional protection on job sites.
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How long does it take to get a contractor license in Illinois?Getting a Illinois contractor license typically involves 8 steps: obtaining required experience (2+ years in trade for state licenses; 3–5 years for City of Chicago GC license; varies by trade), passing the exam, securing insurance, and submitting the application to the Illinois Department of Financial and Professional Regulation (IDFPR) — Trade Licenses; City of Chicago — Local GC License. Processing times vary but most applications are decided within 4–8 weeks after submission.
Official Resources
- Illinois Department of Financial and Professional Regulation (IDFPR) — Trade Licenses; City of Chicago — Local GC License — Official Website
- PSI Exams — Schedule Your Contractor Exam
- Contractor Insurance Guide
- Contractor Bonding Guide
- How to Start a Construction Business
Always verify requirements directly with the Illinois Department of Financial and Professional Regulation (IDFPR) — Trade Licenses; City of Chicago — Local GC License. Requirements, fees, and exam procedures change frequently — this guide is updated periodically but may not reflect the most recent changes.