Minnesota contractor licenses: the eight-skill rule and what each trade needs

Minnesota does not hand out one contractor license. The Department of Labor and Industry (DLI) licenses residential builders, remodelers, roofers, electricians and plumbers, and it takes bond filings from HVAC contractors. Two other agencies license pesticide sprayers and septic crews. The state decides by the number of skills in your contract, not by the dollar size of the job, which surprises owners coming from other states. What follows reflects the agencies' pages in October 2026. Check with the agency before you bid.

For the startup steps that come before licensing, see our Minnesota startup guide. The national contractor license guide explains the common parts of any state process.

The eight-skill rule for residential work

DLI says any individual or company that contracts directly with the owner of one-to-four-unit residential real estate to provide work in more than one special skill needs a residential building contractor or residential remodeler license (DLI residential contractor licensing). An owner who builds or improves homes for resale must hold one too. Under the statute, no one required to be licensed may act or hold themselves out as a residential contractor for pay without it (Minn. Stat. 326B.805).

The eight special skills, as DLI lists them:

Painting shows up under three of the eight categories. A painter who only paints should confirm with DLI whether the work counts as one skill before signing a contract that adds drywall repair or trim. A remodeler license covers existing structures only. A building contractor license adds new homes and detached garages.

Single-skill contractors and the $15,000 exemption

A specialty contractor who provides only one special skill does not need a state license, with the exception of roofers. Those contractors instead register through DLI's Construction Contractor Registration Program. The same program covers subcontractors who do not contract with the homeowner and commercial contractors, and DLI says that if a license is required for the work, you may not register instead (DLI contractor registration).

A second route is the Certificate of Exemption. A person whose annual gross receipts from licensable work are $15,000 or less can file an affidavit with DLI to get one, and must surrender it and get the license if receipts pass $15,000 in a calendar year (Minn. Stat. 326B.805, subdivision 6). The statute defines gross annual receipts so they cannot be reduced by cost of goods sold, expenses or losses (Minn. Stat. 326B.802). A handyman who bills $22,000 a year across several skills is above the line even if profit is thin.

What the license takes: exam, insurance and fees

1. Pick a qualifying person. An owner, officer, member, partner, chief manager or managing employee must pass a written DLI exam. That person gets a Q number, a registration that lasts two years and needs 14 hours of continuing education to renew, including one hour on the Energy Code and one on business management.
2. Insure the company. DLI sets the minimum at $100,000 per occurrence, $300,000 aggregate and $25,000 in property damage, with premises, operations and completed operations coverage. Workers' compensation compliance must be shown on a DLI form.
3. File with the Secretary of State. The business name on your license, insurance certificate and state filing must match exactly.
4. Pay the fees. The base license fee is $180. A Contractor Recovery Fund fee is added by gross receipts: $320 under $1 million, $420 from $1 million to $5 million, $520 above $5 million, as listed by DLI in October 2026.

One local rule: the qualifying person cannot serve for another company unless the two companies share at least 25 percent common ownership.

Roofers and solar installers get their own rules

Roofing is the one single skill that needs a state license. DLI lets you hold a residential roofer license, but it covers roofing only. A licensed roofer cannot contract for gutters, downspouts, soffit or fascia, which need a building contractor or remodeler license. Roofing under DLI includes roof coverings, sheathing, weatherproofing and insulation, and it also covers penetrating a roof to attach a solar photovoltaic system. For how roofing is handled elsewhere, see our national roofing license guide.

Since July 1, 2023, a company that contracts with a homeowner to install a rooftop solar system must hold a residential building contractor or remodeler license. The wiring itself must be done by a Minnesota-licensed electrical contractor. The change was made so homeowners can claim against the Contractor Recovery Fund if a solar company fails.

Electrical, plumbing and HVAC: three different approaches

Electrical

Minnesota requires a contractor license for anyone who performs or offers electrical work, other than employees, partners or officers of a licensed contractor. The contractor must name a responsible master electrician, post a $25,000 bond and carry general liability insurance of $100,000 per occurrence and $300,000 aggregate, plus property damage coverage (Minn. Stat. 326B.33). Unlicensed workers must register with DLI and work under direct supervision by a licensed person from the same employer, at no more than two unlicensed workers per licensed person for most work. HVAC and refrigeration contractors are exempt from the electrical license when doing HVAC work described in section 326B.38. A homeowner doing work on a home they own and occupy is exempt if the dwelling has its own electrical service.

Plumbing

A plumbing contractor license is required in Minnesota communities with a population over 5,000. Below that, a restricted plumbing contractor license is available, but restricted contractors cannot work in communities above 5,000. The responsible licensed individual must hold a master plumber license and cannot be the responsible person for any other plumbing contractor. The license needs a $25,000 surety bond, product liability limits of $50,000 per person and $100,000 per occurrence, $10,000 in property damage, and an application fee of $188, per DLI's page. Our licensed plumber guide covers the personal license path.

HVAC and gas work

DLI says there is no state license for mechanical contractors, but a business must file a $25,000 mechanical contractor bond to contract for gas, heating, ventilation, cooling, air conditioning, fuel burning or refrigeration work. The filing fee is $100 and is valid for two years. Individuals do not need a state license, but cities may require their own license or competency card, and DLI does not issue them. Ask each city where you work.

Pesticide spraying and septic work

The Minnesota Department of Agriculture (MDA) issues commercial pesticide applicator licenses to anyone applying pesticides for hire, meaning customers are billed or invoiced. Licenses go to applicators who pass the Core exam (Category A) and at least one more category, and every license expires on December 31 (MDA licensing). Our pest control license guide outlines the national route.

The Minnesota Pollution Control Agency licenses subsurface sewage treatment system work. A person may not design, install, maintain, pump, inspect or service these systems without a license, and local governments may not require additional local licenses for septic businesses. Until the agency adopts fee rules, the license fee is $200 per year, with a business-wide cap of $400 (Minn. Stat. 115.56).

What happens if you work without a required license

The commissioner may use any enforcement provision in section 326B.082 against a person who is required by law to hold a residential license and does not. Grounds listed in the statute for license sanctions include failing to supervise employees or subcontractors, failing to use payment proceeds to pay for labor and materials, and not giving the owner a valid lien waiver or a payment bond (Minn. Stat. 326B.84). Payments from the Contractor Recovery Fund to a homeowner can also lead to sanctions for the contractor who caused them.

Before you bid, check three things: how many skills the contract names, whether the property has more than four units, and whether a trade on the job is licensed separately. For the broader picture, see the licensing boards table. This page is not legal advice. Rules and fees change, so confirm with DLI, the MDA or the MPCA.

Frequently asked questions