At a Glance: Minnesota Contractor License
| Item | Details |
|---|---|
| Licensing Board | Minnesota Department of Labor and Industry |
| License Types |
|
| License Threshold | All residential work requires license; commercial varies |
| Application Fee | $150–$500 |
| Exam Required | ✅ Yes |
| Exam Provider | DLI approved exams |
| Exam Cost | $75–$130 |
| Experience Required | 2 years experience |
| Insurance Required | General Liability ($100,000); Workers' Comp if employees |
| License Renewal | Annual; $150–$400 |
Step-by-Step: How to Get Your Minnesota Contractor License
- Determine license type (Contractor vs Remodeler)
- Pass applicable DLI exam
- Obtain insurance and post required bond
- Register with DLI online
- Pay annual license fee
Exam Requirements
Provider: DLI approved exams
Cost: $75–$130
Topics covered: Minnesota Building Codes, Business practices
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 ($100,000); Workers' Comp if employees
Beyond what Minnesota 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
Minnesota has the following reciprocity agreements with other states:
No active reciprocity agreements.
Important: Reciprocity agreements change over time. Always contact the Minnesota licensing board directly to confirm current reciprocity status before assuming your out-of-state license qualifies for expedited licensure.
Important Notes for Minnesota
Minnesota requires residential contractors and remodelers to be separately licensed. New construction = Contractor license. Renovation/remodel = Remodeler license.
Official Resources
- Minnesota Department of Labor and Industry — 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 Minnesota Department of Labor and Industry. Requirements, fees, and exam procedures change frequently — this guide is updated periodically but may not reflect the most recent changes.