Minnesota Contractor License Types
| License Type | Application Fee | Annual Renewal | Bond |
|---|---|---|---|
| Residential Building Contractor Required for anyone who contracts directly with a homeowner to build or do work on one- to four-family residential dwellings in more than one special skill area (for example, carpentry plus concrete plus roofing). Covers new construction and major remodeling. Issued by DLI under Minn. Stat. 326B.802 et seq. | Base license fee plus Contractor Recovery Fund fee (scales by gross annual receipts: $320 under $1M; $420 for $1M–$5M; $520 over $5M per Minn. Stat. 326B.89) | Renewed every 2 years; renewal fee plus Recovery Fund fee (tier-based as above). Qualifying person must complete 14 hours of continuing education every 2 years. | No state bond. General liability insurance ($100,000 per occurrence / $300,000 aggregate, plus $25,000 property damage) and workers' compensation (if any employees) required; DLI must be listed as certificate holder. |
| Residential Remodeler Required for anyone who contracts directly with a homeowner to remodel or repair one- to four-family residential dwellings in more than one special skill area. Does not cover new construction from the ground up — use the Residential Building Contractor license for that. | Base license fee plus Recovery Fund fee (tier-based by gross annual receipts per Minn. Stat. 326B.89) | Renewed every 2 years; fee plus Recovery Fund fee. Qualifying person must complete 14 hours of continuing education every 2 years. | No state bond. General liability insurance ($100,000 per occurrence / $300,000 aggregate, plus $25,000 property damage) and workers' compensation (if any employees) required. |
| Residential Roofer Required for anyone who contracts directly with a homeowner to perform roofing work on one- to four-family dwellings. Residential roofing contracts carry a specific statutory right to cancel under Minn. Stat. 326B.811 when an insurance claim related to the work is denied. | Base license fee plus Recovery Fund fee (tier-based by gross annual receipts per Minn. Stat. 326B.89) | Renewed every 2 years; fee plus Recovery Fund fee. Qualifying person must complete 14 hours of continuing education every 2 years. | No state bond. General liability insurance ($100,000 per occurrence / $300,000 aggregate, plus $25,000 property damage) and workers' compensation (if any employees) required. |
| Manufactured Home Installer Required for installation of manufactured homes in Minnesota. Administered by DLI with continuing education and separate fees. Subject to Minn. Stat. 327B. | $180 initial (per DLI form ms_installer_new) | Renewed every 2 years with 14 hours of continuing education prior to each renewal | Insurance required; confirm current requirements with DLI. |
| Electrical Contractor Required for businesses performing electrical work. Regulated under Minn. Stat. 326B.31–.59. A licensed master electrician must be designated as the responsible individual. Continuing education: 16 hours every 2 years, including at least 12 hours of National Electrical Code instruction. | See DLI electrical fee schedule | $188 timely renewal; $90 late fee if received after expiration. Master electrician licenses expire last day of February in odd-numbered years. | Continuous bond required; no need to resubmit bond with each renewal. Liability insurance required. |
| Plumbing Contractor Required for businesses performing plumbing work. Regulated under Minn. Stat. 326B.42–.47. All plumbing contractor licenses expire December 31 in odd-numbered years. | See DLI plumbing fee schedule | $188 renewal (timely); $90 late fee if not received by expiration | $25,000 surety bond required. Liability insurance required: $50,000 per person / $100,000 per occurrence bodily injury; $10,000 property damage. Workers' compensation required if any employees. |
| High-Pressure Piping Contractor Required for contractors performing high-pressure piping work. Regulated separately from plumbing under Minn. Stat. 326B. Individual pipefitter and contractor licenses are issued by DLI. | See DLI high-pressure piping fee schedule | Per DLI schedule | Bond and liability insurance required; confirm current amounts with DLI. |
| Mechanical Contractor Mechanical (HVAC) contractor activity in Minnesota is primarily regulated at the local/municipal level. State-level mechanical licensing is limited; verify requirements with DLI and the local building official for the jurisdiction where work is performed. | Varies; most mechanical licensing is municipal | Varies by municipality | Varies by municipality |
Processing time: Typically 4–8 weeks from complete application to license issuance, assuming exam requirements (where applicable) are already satisfied and background check clears without issue. from application submission to license issuance.
Minnesota licenses residential construction at the state level through the Department of Labor and Industry (DLI), Construction Codes and Licensing Division (CCLD). Anyone who contracts directly with a homeowner for work on one- to four-family dwellings — building, remodeling, or roofing — must hold a state license under Minn. Stat. Ch. 326B unless they qualify for the $15,000 gross-annual-receipts small-contractor exemption. Commercial construction is not licensed at the state level in Minnesota; commercial builders are regulated by local municipalities. Electricians, plumbers, high-pressure pipefitters, mechanical contractors, and manufactured home installers hold separate state licenses from DLI. Minnesota's Contractor Recovery Fund (Minn. Stat. 326B.89) provides a financial backstop for homeowners who obtain a court judgment against a licensed residential contractor and cannot collect.
Step 1: Get the Contractor's Minnesota License Number
Ask for the contractor's state license number before signing anything. Minnesota requires licensed residential contractors to include their license number on contracts, proposals, advertising, and vehicle signage. If a contractor cannot produce a number — or claims to be exempt — ask whether they hold a Certificate of Exemption (for contractors under $15,000 in gross annual residential receipts).
Step 2: Look Up the License on the DLI Website
Use the Minnesota Department of Labor and Industry license lookup to verify the contractor's license status, classification, expiration date, and any disciplinary actions. The lookup covers residential building contractors, remodelers, roofers, electricians, plumbers, and more.
Step 3: Confirm Insurance — DLI Must Be Certificate Holder
Minnesota requires residential contractors to carry general liability insurance and, if they have any employees, workers' compensation. The Department of Labor and Industry must be listed as a certificate holder on the contractor's liability policy — this is how DLI is notified if coverage lapses.
- General liability insurance with DLI named as certificate holder
- Workers' compensation insurance if the contractor has employees
- For plumbing contractors: $25,000 surety bond and liability policy with $50k/$100k/$10k minimums
Step 4: Check Complaint and Recovery Fund History
DLI publishes final disciplinary orders and investigates complaints against licensed contractors. You can call CCLD at 651-284-5012 or 1-800-657-3944 and ask whether a contractor has pending complaints or prior Recovery Fund claims paid against them. A history of paid Recovery Fund claims is a strong warning sign.
Step 5: Verify Trade-Specific Licenses Separately
A residential building contractor license does not cover electrical, plumbing, or high-pressure piping work. If your project includes those trades, verify that the subcontractor holds the separate state license required under Minn. Stat. Ch. 326B. Each trade has its own DLI lookup and its own renewal cycle.
Minnesota Contractor Insurance Requirements
| Insurance Type | Requirement |
|---|---|
| General Liability | Required for licensed residential building contractors, remodelers, and roofers. Minimum limits: $100,000 per occurrence / $300,000 aggregate bodily injury and property damage, plus $25,000 property damage. The Minnesota Department of Labor and Industry must be listed as a certificate holder on the policy so DLI is notified if coverage lapses or is cancelled. |
| Workers' Compensation | Required for any contractor with employees. A contractor working alone with no employees may file an exemption affidavit, but must obtain coverage immediately upon hiring. |
| Plumbing Contractor Liability | Plumbing contractors must carry bodily injury coverage of at least $50,000 per person / $100,000 per occurrence and property damage coverage of at least $10,000, in addition to the $25,000 surety bond. |
Minnesota Contractor Bond Requirements
Minnesota does not require a surety bond for residential building contractors, remodelers, or roofers — the Contractor Recovery Fund (Minn. Stat. 326B.89) functions as the statutory financial safety net instead. Bonds are required for plumbing contractors ($25,000), electrical contractors (continuous bond), and certain other trades. Verify bond status with DLI before hiring.
Minnesota Consumer Protections for Home Improvement
Minnesota law provides several important protections for homeowners hiring contractors:
- All residential construction contracts must be in writing and include a detailed summary of services, description of materials, and the total price or basis for calculating price (Minn. Stat. 326B.809).
- Residential roofing contracts carry a specific statutory right to cancel under Minn. Stat. 326B.811 — specifically, if the homeowner's insurance claim for the roofing work is denied, the owner may cancel the contract within 72 hours of receiving notice of the denial.
- Licensed residential contractors must carry general liability insurance with DLI listed as a certificate holder, so lapsed coverage triggers a regulatory notification.
- The Contractor Recovery Fund (Minn. Stat. 326B.89) reimburses homeowners who obtain a court judgment against a licensed residential contractor and cannot collect. Statutory caps: up to $100,000 per claim and $550,000 aggregate per licensee (Minn. Stat. 326B.89, subd. 5).
- Unlicensed contractors cannot file or enforce a mechanics lien in Minnesota — their lien rights are void under Minn. Stat. 326B.845.
- DLI can impose civil penalties up to $10,000 per violation under Minn. Stat. 326B.082, subd. 7(a) / 12(b), and suspend or revoke licenses. Performing licensed work without a license is a gross misdemeanor under Minn. Stat. 326B.845, which also voids the unlicensed contractor's mechanics lien rights.
What Happens if You Hire an Unlicensed Contractor?
Hiring an unlicensed contractor in Minnesota puts you at risk:
- Unlicensed contractors cannot file or enforce a mechanics lien in Minnesota — their lien rights are void under Minn. Stat. 326B.845
- You lose access to the Contractor Recovery Fund, which only covers judgments against licensed residential contractors
- The contract may be difficult to enforce in court and your homeowner's insurance may deny claims for damage caused by unlicensed work
- DLI can impose civil penalties up to $10,000 per violation under Minn. Stat. 326B.082, subd. 7(a) / 12(b)
- Performing licensed work without a license is a gross misdemeanor under Minn. Stat. 326B.845 — and voids the contractor's mechanics lien rights
- No workers' compensation coverage means you could be liable for on-the-job injuries on your property
How to Report an Unlicensed Contractor in Minnesota
Report unlicensed residential contracting activity to the Minnesota Department of Labor and Industry. Contracting directly with a homeowner for residential construction without a license (and without a Certificate of Exemption) violates Minn. Stat. 326B.802 et seq. DLI investigates reports and can assess civil penalties and refer cases for criminal prosecution.
- Online: dli.mn.gov
- Phone: 651-284-5069 (complaints/investigations) or CCLD main 651-284-5012 / 1-800-657-3944
- Email: dli.contractor@state.mn.us (complaints); dli.license@state.mn.us (licensing questions)
- Mail: Minnesota Department of Labor and Industry, 443 Lafayette Road N., St. Paul, MN 55155
How to File a Complaint Against a Registered Contractor in Minnesota
The Minnesota Department of Labor and Industry investigates complaints against licensed residential contractors and unlicensed contractor activity. DLI can impose civil penalties, suspend or revoke licenses, and refer cases for criminal prosecution. For financial recovery when a licensed contractor will not or cannot pay a court judgment, homeowners can apply to the Contractor Recovery Fund.
You can file a complaint by:
- Online: File a complaint at dli.mn.gov
- Phone: 651-284-5069 (complaints/investigations) or CCLD main 651-284-5012 / 1-800-657-3944
- Email: dli.contractor@state.mn.us (complaints and investigations)
- Mail: Minnesota Department of Labor and Industry, 443 Lafayette Road N., St. Paul, MN 55155
For Contractor Recovery Fund claims, you must first obtain a final civil judgment against the licensed contractor (conciliation court for claims up to $15,000; district court for larger claims), then submit a verified application on the DLI form within the statutory deadline.
Minnesota Contractor Bond Schedule
Minnesota's bonding landscape is trade-specific. The state relies on the Contractor Recovery Fund for residential contractor consumer protection rather than individual bonds.
| License Type | Bond Amount | Notes |
|---|---|---|
| Residential Building Contractor / Remodeler / Roofer | No state bond required | Consumer protection comes from general liability insurance (with DLI as certificate holder) and the Contractor Recovery Fund. |
| Plumbing Contractor Bond | $25,000 | Required under Minn. Stat. 326B.46. Continuous surety bond filed with DLI. |
| Electrical Contractor Bond | Continuous bond required | Bond is continuous — does not need to be resubmitted at each renewal. |
| Local Municipal Bonds | Varies | Many Minnesota cities require a separate local contractor's license bond for work within city limits (for example, Minneapolis, St. Paul, Rochester). |
What Makes Minnesota Contractor Licensing Unique
$15,000 Small-Contractor Exemption
A contractor with less than $15,000 in gross annual receipts from residential work (before expenses) can operate under a Certificate of Exemption instead of a full license (Minn. Stat. 326B.805, subd. 6). This carve-out exists to accommodate very small operators and side-work, but exempt contractors are still subject to consumer-protection laws.
No State License for Commercial General Contractors
Minnesota does not license commercial general contractors at the state level. Commercial builders are regulated by the municipality where the work is performed — meaning the rules in Minneapolis, St. Paul, Duluth, and Rochester can differ. For residential 1–4 unit dwellings, the state DLI license applies.
Contractor Recovery Fund Instead of State Bond
Unlike most states, Minnesota does not require residential contractors to post a surety bond. Instead, a portion of each license fee funds the Contractor Recovery Fund (Minn. Stat. 326B.89), which reimburses homeowners who win a judgment against a licensed contractor and cannot collect. The Recovery Fund fee tier is based on gross annual receipts: $320 (under $1M), $420 ($1M–$5M), or $520 (over $5M). Statutory payout caps (Minn. Stat. 326B.89, subd. 5) are $100,000 per claim and $550,000 aggregate per licensee.
DLI Must Be Certificate Holder on Insurance
Minnesota uniquely requires the Department of Labor and Industry to be listed as a certificate holder on the contractor's general liability insurance. This means DLI is automatically notified if a contractor's insurance lapses or is cancelled — a regulatory mechanism that helps keep licensed contractors continuously covered.
Separate Trade Licenses for Electrical, Plumbing, Piping
A residential building contractor license does not authorize electrical, plumbing, or high-pressure piping work. Those trades are licensed separately under Minn. Stat. Ch. 326B, with their own renewal cycles, continuing-education hours, and bond/insurance requirements. Electricians need 16 hours of continuing education every 2 years (at least 12 hours of NEC instruction).
Minnesota Contractor License Fees
Frequently Asked Questions: Minnesota Contractor Licensing
How do I check a contractor's license in Minnesota?
Use the Minnesota Department of Labor and Industry license lookup at dli.mn.gov/license-and-registration-lookup. You can search by business name, individual name, or license number. The lookup shows license type, status, expiration date, and disciplinary history. You can also call DLI's Construction Codes and Licensing Division at 651-284-5012 or 1-800-657-3944.
Does Minnesota require a state license for commercial contractors?
No. Minnesota does not license commercial general contractors at the state level. Commercial construction is regulated by the municipality where the work is performed — Minneapolis, St. Paul, Rochester, and Duluth all have their own local contractor registration and permit systems. Only residential work on 1- to 4-family dwellings requires a state DLI license.
What is the difference between Residential Building Contractor, Remodeler, and Roofer in Minnesota?
Residential Building Contractor (RBC) is the broadest license and covers new construction and remodeling of 1- to 4-family dwellings. Residential Remodeler (RR) covers remodeling and repair but not ground-up new construction. Residential Roofer (RRF) is limited to roofing work. Each license requires contracting directly with a homeowner in more than one special skill area. Specialty trades (electrical, plumbing, HVAC) require separate licenses.
What is the $15,000 small-contractor exemption?
Under Minn. Stat. 326B.805, subd. 6, a contractor with less than $15,000 in gross annual receipts from residential construction may file for a Certificate of Exemption instead of obtaining a full residential contractor license. Gross receipts are measured before expenses. Exempt contractors are still subject to Minnesota's consumer protection, contract, and lien laws.
Do Minnesota contractors need a surety bond?
Residential building contractors, remodelers, and roofers do NOT need a state surety bond. Instead, a portion of each license fee funds the Contractor Recovery Fund (Minn. Stat. 326B.89), which reimburses homeowners who cannot collect on a court judgment against a licensed contractor. Plumbing contractors need a $25,000 bond; electrical contractors need a continuous bond. Individual Minnesota cities may require local bonds.
How does the Minnesota Contractor Recovery Fund work?
If you win a civil judgment against a licensed Minnesota residential contractor (for fraudulent, deceptive, or dishonest practices, or for failure to perform) and cannot collect, you may file a verified application with DLI to recover from the Contractor Recovery Fund under Minn. Stat. 326B.89. You must first obtain the judgment (conciliation court for amounts up to $15,000, or district court for larger claims), then file the DLI application within the statutory deadline. DLI reviews and, if approved, pays eligible losses — excluding attorney fees, interest, and sweat equity. Statutory caps (subd. 5): $100,000 per claim and $550,000 aggregate per licensee.
How much does a Minnesota residential contractor license cost?
The cost is the base license fee plus a Contractor Recovery Fund fee that scales with gross annual receipts: $320 (under $1 million), $420 ($1–5 million), or $520 (over $5 million) per Minn. Stat. 326B.89. Licenses renew every 2 years, and qualifying persons must complete 14 hours of continuing education every 2 years. Plumbing and electrical contractor renewals are $188 if timely, with a $90 late fee.
Do Minnesota residential contracts require specific terms?
Yes. Minn. Stat. 326B.809 requires written residential construction contracts (and proposals, estimates, bids, and change orders) to include: (1) a detailed summary of services to be performed; (2) a description of specific materials or standard features; and (3) the total price or the basis for calculating the price. Residential roofing contracts also carry a statutory right to cancel under Minn. Stat. 326B.811: if the homeowner's insurance claim for the work is denied, the owner may cancel within 72 hours of receiving notice of the denial.
What happens if I hire an unlicensed contractor in Minnesota?
Unlicensed contractors in Minnesota cannot file or enforce a mechanics lien — their lien rights are void under Minn. Stat. 326B.845. You also lose access to the Contractor Recovery Fund, which only covers judgments against licensed residential contractors. The contractor may face civil penalties up to $10,000 per violation under Minn. Stat. 326B.082 (subd. 7(a) / 12(b)), and performing licensed work without a license is a gross misdemeanor under Minn. Stat. 326B.845. Your homeowner's insurance may also deny claims for damage caused by unlicensed work.
How do I file a complaint against a Minnesota contractor?
File a complaint with the Minnesota Department of Labor and Industry online at dli.mn.gov, by phone at 651-284-5012 or 1-800-657-3944, by email at dli.contractor@state.mn.us, or by mail to Minnesota Department of Labor and Industry, 443 Lafayette Road N., St. Paul, MN 55155. DLI investigates complaints against licensed contractors and unlicensed contractor activity and can impose civil penalties, suspend or revoke licenses, and refer cases for criminal prosecution.
Sources
Facts on this page were verified against the following primary sources on April 20, 2026. Licensing laws, fees, and bond amounts change — always confirm with the official board before acting.
- Minnesota Department of Labor and Industry (DLI) — Residential Contractor Licensing — Primary DLI page for residential building contractor, remodeler, and roofer licensing. (retrieved 2026-04-20)
- DLI — Construction Codes and Licensing Division (CCLD) — Division that administers residential contractor and trade licensing in Minnesota. (retrieved 2026-04-20)
- DLI — Phone and Email Directory — CCLD main line: 651-284-5012 or 1-800-657-3944. Licensing: dli.license@state.mn.us / 651-284-5034. Complaints: dli.contractor@state.mn.us / 651-284-5069. (retrieved 2026-04-20)
- DLI — Contact Us — Headquarters: 443 Lafayette Road N., St. Paul, MN 55155. (retrieved 2026-04-20)
- Minn. Stat. Ch. 326B — Construction Codes and Licensing (full chapter) — Full text of Ch. 326B governing residential contractor, electrical, plumbing, and other trade licensing. (retrieved 2026-04-20)
- Minn. Stat. 326B.805 — Residential Contractor Licensing and $15,000 Exemption — Statutory scope of residential contractor licensing and gross-annual-receipts exemption (subd. 6). (retrieved 2026-04-20)
- Minn. Stat. 326B.809 — Required Contract Terms — Required terms in residential construction contracts: scope, materials, price. (retrieved 2026-04-20)
- Minn. Stat. 326B.811 — Residential Roofing Contracts Right to Cancel — Statutory right to cancel residential roofing contracts. (retrieved 2026-04-20)
- Minn. Stat. 326B.83 — Application and Examination — Application, examination, and related procedures for residential contractor licensing. (retrieved 2026-04-20)
- Minn. Stat. 326B.89 — Contractor Recovery Fund — Contractor Recovery Fund statute — eligibility, application, and payout rules. (retrieved 2026-04-20)
- Minn. Stat. 326B.845 — Unlicensed Activity Enforcement — Penalties for performing licensed work without a license. (retrieved 2026-04-20)
- DLI — Contractor Recovery Fund Application Packet — Official DLI application packet for Recovery Fund claims. (retrieved 2026-04-20)
- DLI — Electrical Contractor License Renewal Instructions — Electrical contractor renewal fees ($188 timely, $90 late) and bond/CE rules. (retrieved 2026-04-20)
- DLI — Plumbing Contractor Licensing Basics — Plumbing contractor licensing requirements including $25,000 bond and liability minimums. (retrieved 2026-04-20)
- DLI — Plumbing Contractor Renewal — Plumbing contractor renewal: $188 timely; licenses expire Dec. 31 in odd-numbered years. (retrieved 2026-04-20)
- DLI — Manufactured Home Installer License — Manufactured home installer licensing and continuing education. (retrieved 2026-04-20)
- DLI License Lookup — Official Minnesota DLI license and registration lookup for contractors and trades. (retrieved 2026-04-20)
Other States
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