At a Glance: Michigan Contractor License
| Item | Details |
|---|---|
| Licensing Board | Michigan Department of Licensing and Regulatory Affairs (LARA) |
| License Types |
|
| License Threshold | Residential work of any amount requires license |
| Application Fee | $100–$300 |
| Exam Required | ✅ Yes |
| Exam Provider | PSI Exams |
| Exam Cost | $75–$130 |
| Experience Required | 3 years in residential construction (for Builder) |
| Insurance Required | General Liability required; Workers' Comp if employees |
| License Renewal | Annual; $100–$300 |
Step-by-Step: How to Get Your Michigan Contractor License
- Choose license type based on work performed
- Document 3 years experience (for Residential Builder)
- Pass Michigan exam via PSI
- Obtain insurance
- Apply through LARA MiPLUS portal
- License issued in 4–6 weeks
Exam Requirements
Provider: PSI Exams
Cost: $75–$130
Topics covered: Michigan Building Code, Michigan Law & Business
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 required; Workers' Comp if employees
Beyond what Michigan 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
Michigan has the following reciprocity agreements with other states:
No active reciprocity agreements.
Important: Reciprocity agreements change over time. Always contact the Michigan licensing board directly to confirm current reciprocity status before assuming your out-of-state license qualifies for expedited licensure.
Important Notes for Michigan
Michigan requires separate licenses for residential vs commercial work. Electrical, plumbing, and mechanical have their own state licenses. Local municipalities may have additional requirements.
Official Resources
- Michigan Department of Licensing and Regulatory Affairs (LARA) — 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 Michigan Department of Licensing and Regulatory Affairs (LARA). Requirements, fees, and exam procedures change frequently — this guide is updated periodically but may not reflect the most recent changes.