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 min); Workers' Comp if employees |
| License Renewal | Annual; $150–$400 |
Step-by-Step: How to Get Your Minnesota Contractor License
- Determine license type: Residential Contractor (new construction) or Residential Remodeler (renovation)
- Pass applicable DLI exam ($75–$130) — covers Minnesota Building Codes and business practices
- Obtain $100,000+ General Liability insurance and post $15,000 surety bond
- Register with DLI online at dli.mn.gov
- Pay license fee ($150–$500 depending on classification)
- License typically issued within 2–4 weeks
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 min); 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. $15,000 surety bond required for both — common requirement often missed by new applicants.
Frequently Asked Questions
-
Do I need a contractor license in Minnesota?Yes. In Minnesota, contractors are required to be licensed for projects valued at All residential work requires license; commercial varies. The licensing is managed by the Minnesota Department of Labor and Industry. Operating without a license can result in fines and inability to enforce contracts.
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How much does a Minnesota contractor license cost?The application fee for a Minnesota contractor license is $150–$500. An exam fee of $75–$130 is also required for the DLI approved exams exam. Renewal is Annual; $150–$400.
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Is an exam required for a Minnesota contractor license?Yes. Minnesota requires passing the DLI approved exams exam (cost: $75–$130) covering Minnesota Building Codes and Business practices. Passing the exam is a prerequisite before applying for your license.
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What insurance is required for a Minnesota contractor license?Minnesota requires the following insurance for contractor licensing: General Liability ($100,000 min); Workers' Comp if employees. 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 Minnesota?Getting a Minnesota contractor license typically involves 6 steps: obtaining required experience (2 years experience), passing the exam, securing insurance, and submitting the application to the Minnesota Department of Labor and Industry. Processing times vary but most applications are decided within 4–8 weeks after submission.
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.