Contractor License in Michigan (2026)

Michigan contractor license status: restricted. In Michigan, individuals performing residential building or alteration services frequently need to be licensed as a residential builder or maintenance and alteration contractor, which is regulated by the Department of Licensing and Regulatory Affairs (LARA).. A valid license is required to operate.

Key facts

Status
Restricted
License required
Yes
Jurisdiction
Michigan
Last reviewed
2026-04-09

Contractor License laws in Michigan

Michigan law differentiates between those who construct entire residential structures (residential builders) and those who perform specific home improvements (maintenance and alteration contractors). Both types of contractors are required to obtain a license from the Michigan Department of Licensing and Regulatory Affairs (LARA) if the total cost of materials and labor for a project exceeds a certain threshold, or if they are engaged in constructing or altering residential dwellings. This licensing helps ensure contractors meet minimum competency and financial responsibility standards. The licensing process typically involves demonstrating experience, passing an examination, and sometimes providing proof of financial stability or insurance. Certain specialized trades, like electricians or plumbers, have their own distinct licensing requirements and are often regulated by different boards or departments within LARA, even if they operate under the umbrella of a larger residential project. It's crucial for contractors to understand which specific license applies to their scope of work in Michigan.

Frequently asked questions

What are the Contractor License requirements in Michigan?

In Michigan, contractor license status is restricted. Michigan law differentiates between those who construct entire residential structures (residential builders) and those who perform specific home improvements (maintenance and alteration contractors). Both types of contractors are required to obtain a license from the Michigan Department of Licensing and Regulatory Affairs (LARA) if the total cost of materials and labor for a project exceeds a certain threshold, or if they are engaged in constructing or altering residential dwellings. This licensing helps ensure contractors meet minimum competency and financial responsibility standards. The licensing process typically involves demonstrating experience, passing an examination, and sometimes providing proof of financial stability or insurance. Certain specialized trades, like electricians or plumbers, have their own distinct licensing requirements and are often regulated by different boards or departments within LARA, even if they operate under the umbrella of a larger residential project. It's crucial for contractors to understand which specific license applies to their scope of work in Michigan.

How do I obtain a Contractor License in Michigan?

Michigan requires a Contractor License. Contact the relevant state agency for application details and testing locations.

Can I use my out-of-state Contractor License in Michigan?

Michigan generally recognizes out-of-state credentials through reciprocity agreements, but you must transfer your contractor license within 30 days of establishing residency. Check with the state agency for specific reciprocity details.

What are the penalties for contractor license violations in Michigan?

Penalties for contractor license violations in Michigan vary based on the specific offense. Verify current penalties with official state resources.

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