Michigan contractor licenses: which trades the state licenses and which it does not

Michigan splits contractor licensing between two state offices and then leaves permits to cities and townships. The Department of Licensing and Regulatory Affairs (LARA) runs the Bureau of Construction Codes, which licenses builders and the skilled trades. The Department of Agriculture and Rural Development (MDARD) licenses anyone who sprays pesticides for hire. This page walks through each trade and what the statute or agency says about it. Treat it as a summary of October 2026 rules, not legal advice, and confirm with the agency before you bid.

If you are still choosing a business structure, start with our Michigan startup guide. For how licensing works in other states, see the national contractor license guide.

Residential builders and M&A contractors: the license most home-service owners ask about

Article 24 of the Occupational Code (Public Act 299 of 1980) covers anyone who builds, repairs, alters, adds to, improves or wrecks a residential structure for pay beyond wages for personal labor. The statute defines a residential structure as a detached one- or two-family dwelling or a townhouse of not more than three stories, plus related facilities. It also counts building a garage or laying concrete on residential property as maintenance and alteration work (MCL 339.2401).

Michigan issues two licenses under this article. A residential builder license covers building the structure. The M&A license is trade-specific. LARA lists the crafts as carpentry, concrete, excavation, insulation work, masonry, siding, roofing, screens and storm sash, gutters, tile and marble, house wrecking, swimming pools and basement waterproofing, and the license names the ones you qualify for (LARA M&A information). The statute adds that a specialty contractor may take a job that includes other crafts only when that work is incidental and supplemental to the licensed craft (MCL 339.2404).

Where the $600 line sits, and how it can fail

The statute exempts a person working on one undertaking or project under one or more contracts when the total price for labor, materials and other items is under $600. The exemption does not apply when the job is only part of a larger operation, or when a larger job is split into contracts under $600 to evade the law (MCL 339.2403). A handyman who prices three $550 invoices on the same kitchen remodel is outside the exemption.

Other exemptions in the same section include homeowners working on their own residence, owners of rental property doing maintenance and alteration on it, and persons who work solely under contract to a licensed builder or M&A contractor. Licensed electrical, plumbing and mechanical contractors are exempt for their own installation, maintenance and repair work only.

A subcontractor under a licensed builder does not need its own M&A license, but a subcontractor hired directly by a homeowner does. The line is who signs the contract with the owner. Read the contract before you assume your sub work is covered.

What an unlicensed residential contractor risks in Michigan

Michigan sets heavy consequences for unlicensed residential work, and they sit in two statutes.

• Criminal fine. A person not licensed under Article 24 who violates the licensing requirement commits a misdemeanor on a first offense, punishable by a fine of $5,000 to $25,000, up to one year in jail, or both. A second offense raises the possible jail term to two years. Work that causes death or serious injury is a felony with up to four years (MCL 339.601(6)).
• Civil fine. A prosecutor or the attorney general can sue an unlicensed person and the court must assess a civil fine of $5,000 to $25,000 on top of damages or restitution (MCL 339.2412(4)).
• No collection suit and no lien. A residential builder or M&A contractor may not bring or maintain a court action to collect pay for work that needs a license without proving it was licensed during the work. The same section bars a lien on the real property by anyone who was not licensed.

For other occupational licenses in the same code, the base penalty is lower: up to $500 and 90 days for a first violation, per MCL 339.601(4). The higher range applies to residential building.

Electrical, plumbing and HVAC each follow their own act

The Skilled Trades Regulation Act (Public Act 407 of 2016) licenses three trades that residential contractors often touch. All three require a master-level person tied to the contractor license.

Electrical

Nobody may engage in electrical contracting without a contractor's license from the state or from an approved municipality. The contractor license goes to a master electrician or to a company with a full-time Michigan-resident master electrician in charge of code compliance (MCL 339.5711). The master license requires age 22, at least 12,000 hours of experience over six or more years under a master, and two years as a journeyman (MCL 339.5713). The ratio on a job site is one journeyman or master to no more than three registered apprentices (MCL 339.5717). The act defines minor repair work as electrical wiring valued at $100 or less (MCL 339.5703), and the exemptions list excludes minor repair work from the license requirement (MCL 339.5737).

That same section carves out two outdoor trades. Installing, maintaining or servicing listed lawn irrigation equipment and listed landscape lighting needs no electrical license, except for permanent wired connections over 30 volts. A landscaper who sets low-voltage path lights is outside the electrical act, but one who ties a transformer into a 120-volt circuit is not.

Plumbing

Only a licensed master plumber or the second-tier licensed plumber may perform plumbing, and the contractor must hold a permit from the state or local agency. Exempt work includes minor repair, defined as clearing stoppages and replacing a faucet or valve or reinstalling the same fixture. A repair that is part of a larger renovation does not count as minor (MCL 339.6103). LARA lists 6,000 hours over at least three years as a registered apprentice for the second-tier plumber license (LARA plumbing licensing). A master needs that second-tier license plus 4,000 hours over at least two years (MCL 339.6113). A plumbing contractor must post a sign at the place of business with the master plumber's name and license number in letters at least three inches high (MCL 339.6111(8)).

Mechanical and HVAC

Mechanical contractors get a license in one or more classifications, from HVAC equipment and ductwork to refrigeration and limited heating service. The applicant needs three years or 6,000 hours of experience in the classification, or a qualifying license held for three years, then passes the exam (MCL 339.5807). The firm must name a contractor of record and pull the permit. If that person leaves, the firm has 90 days to name a replacement (MCL 339.5815). Security alarm companies registered under the state's alarm acts may install thermostats without a mechanical license (MCL 339.5809(4)).

Cities can run their own electrical licensing instead of the state's, as long as the ordinance is at least as strict, and a license from a qualifying city must be recognized by other municipalities (MCL 339.5733). For the national picture on these trades, read our pieces on becoming a licensed electrician and becoming a licensed plumber.

Lawn care and pest control: MDARD, not LARA

A commercial applicator who holds out to the public as being in the business of applying pesticides for pay must hold a pesticide application business license from MDARD. Personal certification does not allow you to run a business that applies pesticides for hire. Key points from MDARD's page, as listed in October 2026:

• The application and renewal fee is $100, and licenses expire each year on December 31.
• You need a certified applicator on staff whose credentials cover your categories, such as 3A turfgrass or 3B ornamental pest management.
• A new firm must show experience: two application seasons as an employee of a commercial applicator, or a pest-related bachelor's degree plus one season. The letter of experience is notarized.
• You file a certificate of liability insurance with at least $100,000 for bodily injury per occurrence and $25,000 for property damage per occurrence for most categories.
• Sole proprietors and partnerships submit a DBA certificate from each county clerk where they operate.

MDARD says to allow four to six weeks for the business license, on top of the time to process certification credentials. Details on the exam route are in our pest control license guide.

Trades the pages above do not license

Painting alone, pressure washing, mowing, house cleaning, junk removal and gutter cleaning do not appear on LARA's trade list or in the skilled trades acts above. We found no Michigan statute or agency page that licenses them as stand-alone trades. Two cautions apply. First, painting and pressure washing that become part of a larger repair or improvement of a home can fall back under the broad M&A definition, so a job with repairs, new siding or coatings is worth a call to LARA. Second, no state license does not mean no paperwork: you still need a business entity or assumed name, workers' compensation once you cross the thresholds, and local business licenses where a city requires them.

This page does not cover home inspectors, locksmiths or septic haulers. We could not confirm their Michigan requirements from a primary source, so we left them out. Check with LARA or your county health department.

Permits, local rules and the checks to run before you bid

A state license does not replace a permit. The Michigan Residential Code is enforced by the local building department, and a licensee can be disciplined for workmanship that falls short of that code (MCL 339.2411(2)(m)). Complaints must be made within 18 months after completion or occupancy. Run these checks first:

1. Look up the job's craft against the M&A trade list on your license.
2. Add up the full contract, including any related work, against the $600 line.
3. Confirm that your electrical, plumbing and mechanical subs hold their own licenses and that the permit holder is the right licensee.
4. Ask the building department whether the city has its own electrical licensing or registration.
5. Keep every contract in writing. A residential contractor's failure to deliver the whole agreement to the purchaser is itself a ground for discipline.

Insurance and workers' compensation rules are separate from licensing, so see our contractor insurance guide and the full licensing boards table for how Michigan compares. Nothing here is legal advice. Rules change, so call LARA at 517-241-9316 or read its current pages.

Frequently asked questions