How to start a remodeling business in Massachusetts: HIC registration, CSL and contract rules

Remodeling in Massachusetts runs on two state credentials that people confuse constantly. One registers your company with a consumer-protection office. The other licenses a person to supervise work under the building code. This page covers what changes in Massachusetts. Our remodeling startup guide has the basics, and the state's wider rules are in Massachusetts contractor licenses and the Massachusetts starting guide.

The HIC registration and the CSL do different jobs

The Office of Consumer Affairs and Business Regulation (OCABR) says that contractors, subcontractors, partnerships or corporations that solicit, bid on or perform contracting work on an existing, owner-occupied residential property with one to four units must register as a Home Improvement Contractor. Its HIC contractor resources page says the registration is different from a Construction Supervisor License and the two are not interchangeable. An HIC registrant is not required to pass an exam.

The Division of Occupational Licensure issues the CSL after an exam on the state building code. The state says it is generally required for any work that involves a building's structural elements. The HIC page gives the split in plain terms. With only an HIC registration you can do ordinary repairs such as exterior painting, wallpapering and repairing existing decking. Larger projects such as a deck or an addition need a CSL. A kitchen renovation may need both, though not necessarily held by the same person. The contractor who signs the contract with the homeowner must hold the HIC registration, and that contractor can subcontract larger work to someone who holds both the license and the registration.

What the state's job chart says about remodeling work

OCABR publishes a chart of common jobs. It is general guidance only, and the page says to consult the building official. Selected rows:

The comments column matters. Kitchen cabinets may need a permit and CSL if they are part of a larger project, and plumbing or wiring needs a building permit and a CSL if it cuts or notches building elements. The chart also says plumbing, wiring, central heating and air conditioning are done by licensed trades as required by law. Electricians, plumbers and gas fitters are licensed by their own state boards, listed in our Massachusetts contractor licenses guide. A remodeler either subs those trades or hires licensed people. The same OCABR page lists exemptions from HIC registration, including interior painting, wall and floor coverings, fencing, landscaping and some part-time and small jobs under $500.

What HIC registration costs and how it lapses

OCABR's registration page lists fees as of October 2026. A new registration costs $150 plus a Guaranty Fund payment based on headcount: $100 for zero to three employees, $200 for four to ten, $300 for eleven to thirty and $500 for more than thirty. Registration renews every two years for $100. If it expires, you reapply and pay the full registration fee plus $100 to $500 for the Guaranty Fund, and your ability to pull municipal permits may be affected. Everything runs through the MA Contractor Hub online. Supplemental registration cards for officers or staff cost $10 each. Out-of-state corporations and LLCs must first register as foreign entities with the Secretary of the Commonwealth.

The Guaranty Fund exists for homeowners. OCABR says a homeowner who wins an arbitration award or a court judgment and cannot collect may apply for up to $25,000 of actual losses. A customer of an unregistered contractor is not eligible for arbitration or the Fund, which is one reason homeowners check the registration before they sign.

Getting a Construction Supervisor License

The Division of Occupational Licensure lists the types on its CSL types page. The unrestricted CSL covers construction, reconstruction, alteration, repair, removal or demolition of buildings of any use under 35,000 cubic feet, one- and two-family dwellings and their accessory structures, agricultural buildings, and walls under 10 feet. A narrower license covers one- and two-family dwellings only. Specialty licenses cover masonry, roof covering, windows and siding, solid fuel appliances, demolition and insulation.

To apply, the state's application page asks you to verify three years of experience in building construction or design, then register and sit the exam with PSI, which is based on the 10th Edition of the State Building Code, then mail the score report to the Board of Building Regulations and Standards. If you are a remodeler without the license, decide whether you will earn it or partner with a license holder, because structural work cannot proceed without one. Check the CSL program page for current fees.

The contract rules that shape your quote

M.G.L. c. 142A, section 2 requires a written contract for any residential contracting agreement above $1,000. The contract must include the contractor's registration number, the names and addresses of the parties, the total price, a detailed description of the work and materials, a payment schedule in dollars including finance charges, and the scheduled start and substantial completion dates. No work may begin before the contract is signed and a copy delivered to the owner. The contract must contain a notice of the owner's three-day cancellation rights.

The deposit rule is specific. Any advance deposit cannot exceed the greater of one-third of the total contract price or the actual cost of special-order or custom-made materials that must be ordered in advance. No final payment may be demanded until the work is completed to the satisfaction of the parties. OCABR lists demanding payment in violation of that clause as a violation. On a $60,000 kitchen with a $14,000 custom cabinet order, one-third is $20,000, so you could not ask for more than $20,000 up front. Put that arithmetic into your remodeling pricing and your estimate templates.

Advertising, permits and enforcement

OCABR says building permits, contracts and advertising for residential contracting must contain the contractor's active registration number. The violations list includes publishing any home improvement advertisement without the registration number, advertising that you are registered without an accurate reference to your number, and conducting business under any name other than the one you registered. For your website and listings that means the number in the footer, on your Google profile, on vehicle lettering and in every ad. Building permits also must state that people who contract with unregistered contractors do not have access to the Guaranty Fund.

Complaints go to a virtual hearing. Possible sanctions include a reprimand, suspension or revocation and fines, and the state says it can fine up to $2,000 for each violation. A contractor has 30 days to respond to a complaint, so keep signed contracts, change orders and permit records in one place. A custom CRM that stores each signed contract and permit number against the job makes that easy.

Sales tax, workers' comp and recording calls

The Department of Revenue's sales and use tax guide says contractors who repair or improve real property pay the tax on materials when they buy them. A contractor who installs a complete standard item and does nothing more is treated as a retailer and must collect tax. The guide covers contractors only in outline, so confirm with the Department how your own invoices, including separately stated installation charges, are treated.

The Department of Industrial Accidents says all employers must carry workers' compensation regardless of hours or headcount, so your first part-time helper triggers it. LLC members need not cover themselves. The DIA's requirements page lists stop work orders with fines starting at $100 per day, rising to $250 per day if you appeal and keep working. Under M.G.L. c. 272, section 99, Massachusetts requires every party's prior authority to record, so announce recording at the start of calls. See Massachusetts website, phone and email rules.

What to do first

1. Write down the jobs you will sell and note the CSL, HIC and permit answer for each, using the state chart.
2. Decide who holds the CSL: you, an employee or a partner.
3. Register on the MA Contractor Hub and pay the $150 fee and the Guaranty Fund amount for your headcount.
4. Build the contract template: registration number, dates, payment schedule, cancellation notice, deposit cap.
5. Add the HIC number to your site, cards, ads and trucks.
6. Get workers' comp quoted before your first hire.

This page is not legal or tax advice, and fees can change, so check with OCABR, the Division of Occupational Licensure and your town's building official.

Frequently asked questions