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GENERAL CONTRACTING x MICHIGAN

General Contracting contractor requirements in Michigan.

Article 24 of the Occupational Code covers anyone who, for compensation, builds, repairs, alters, improves, or demolishes a residential structure. Since 2020 PA 341 (retroactive to January 1, 2019) 'residential structure' means a detached 1- or 2-family dwelling or a townhouse of not more than 3 stories above grade. Older LARA web copy still says 'combination residential and commercial structure'; the current statute text is narrower.

The full Residential Builder license covers new homes plus all remodeling; the Maintenance & Alteration (M&A) license is the narrower option, limited to the crafts you test for. Both need the same 60-hour prelicensure course and PSI exam. The penalties are sharp: an unlicensed residential contractor cannot sue for payment or file a lien, and a first offense carries a mandatory $5,000 minimum fine.

STATE LICENSE
ConditionalMichigan LARA — Bureau of Construction Co…
STATUTE
MCL 339.2401 – 339.2412 (Occupational Code, Art. 24)
RENEWAL
Every 3 years — $150 ($170 late)21 hrs / 3-yr cycle (licensed 2009+)
VERIFIED
October 2026Official sources
FILE · GENERAL CONTRACTING x MICHIGAN
Compliance Dossier
Public
File
October 2026
STATE AUTHORITYMichigan LARA — Bureau of Construction Codes, Licensing Section
STATUTE / CODEMCL 339.2401 – 339.2412 (Occupational Code, Art. 24)
SCOPEStatewide · Michigan
RENEWALEvery 3 years — $150 ($170 late)
CONTINUING ED.21 hrs / 3-yr cycle (licensed 2009+)
LOCAL OFFICES4 counties on file
FILE GENERAL CONTRACTINGSCOPE STATEWIDE · MICHIGANTYPE VERIFIED RULE FILE
VERIFIED October 2026STATUS PUBLIC REFERENCE
What this file settlesThe Michigan rules for general contracting contractors, verified against official sources.
LICENSE TRUTH
Michigan licenses residential builders, not commercial general contractors: building or remodeling a 1- or 2-family home or a townhouse up to 3 stories for $600 or more requires a LARA Residential Builder (or M&A) license, while commercial general contracting has no state license.
STATE ↔ LOCAL
The Residential Builder license is the state layer for 1–2 family and small-townhouse work; permits and inspections run through the local enforcing agency. Commercial general contracting has no state license, so any requirement there comes from the municipality — LARA says it cannot advise on those and refers contractors to the specific municipality.
EVERY CLAIM SOURCED
Each requirement below carries its citation and official source. Facts we could not confirm are listed as pending — never asserted.
§ 01 · Permit Stack

How general contracting work is governed in Michigan.

The state sets the license floor; the county or city permit office controls filing, inspections, and local rules wherever the job site sits.

STATE — RESIDENTIAL ONLY
LARA Bureau of Construction Codes
RESIDENTIAL BUILDER LICENSE60-HR PRELICENSUREPSI EXAM
STATE — NO COMMERCIAL GC LICENSE
Article 24 scope (MCL 339.2401)
COMMERCIAL WORK UNLICENSED AT STATE LEVELTRADES STILL LICENSED
LOCAL — WHERE YOU FILE
City / township / county enforcing agency
BUILDING PERMITSINSPECTIONSANY LOCAL RULES

Read it bottom-up.

The Residential Builder license is the state layer for 1–2 family and small-townhouse work; permits and inspections run through the local enforcing agency. Commercial general contracting has no state license, so any requirement there comes from the municipality — LARA says it cannot advise on those and refers contractors to the specific municipality.

The local offices section below names the exact permit desk for every Michigan county on file.

Source · Michigan LARA — Bureau of Construction Codes, Licensing SectionLast verified · October 2026
§ 02 · Specs Ledger

Every requirement, with a number on it.

Each row names the issuing authority, cost, timeline, citation, and status behind the requirement — verified against the official source.

RequirementIssued byCostTimeCitationStatus
Residential Builder LicenseResidential work of $600+ per project
LARA BCC
$195 application
Exam-based
MCL 339.2401(a); 339.2403(f)
CONDITIONAL
60-Hour Prelicensure Course≥6 hrs each in 7 areas incl. Michigan Residential Code and MIOSHA safety
LARA-approved sponsor
Set by sponsor
Before applying
MCL 339.2404b(1)(c)
CONDITIONAL
Company LicenseLLC / corporation / partnership; qualifying officer holds individual license
LARA BCC
$195
After individual license
LARA Builder FAQ
CONDITIONAL
Renewal3-year term; $170 late; $185 relicensure
LARA BCC
$150
Every 3 years
MCL 339.2404; LARA fee schedule
REQUIRED
Continuing Competency21 hrs / cycle (licensed 2009+), ≥3 hrs/yr first 6 years
Approved providers
Course fees
Each 3-year cycle
MCL 339.2404b(2)
REQUIRED
Commercial GC LicenseNone exists at the state level
—
$0
—
LARA Builder FAQ
OPTIONAL
Building PermitPer local enforcing agency's code
Local enforcing agency
Set by locality
Per project
Local code
CONDITIONAL
§ 03 · Year-One Cost

What it costs to start general contracting in Michigan.

Published fees from the issuing authorities, as of October 2026. Local permit fees vary by project and jurisdiction — the basis is stated where a flat number does not exist.

Year-one ledger
Michigan · General Contracting
Residential Builder applicationIndividual; veterans' fee waived$195
Company licenseLLC / corporation / partnership$195
RenewalPer 3-year term$150
Late renewal$170
RelicensureLapsed license$185
PSI exam + 60-hr coursePaid to PSI and the course sponsorNot published by LARA
Year-one floor$195–$390 in state fees + course + PSI exam
Excludes tools, vehicle purchase, payroll, and marketing.
NOTE
Narrowed in 2020

2020 PA 341 redefined 'residential structure' as 1- and 2-family dwellings and townhouses up to 3 stories, retroactive to January 1, 2019. Larger multifamily and mixed-use projects fall outside Article 24.

NOTE
Builder or M&A — not both

An individual holds either a Residential Builder license or an M&A license. M&A applicants must pick at least one craft but not all twelve.

NOTE
No recovery fund

Michigan's Homeowner Construction Lien Recovery Fund was abolished in August 2010, per LARA.

§ 04 · Path to First Job

From day zero to first inspection.

A practical sequence for a new general contracting contractor in Michigan. Actual agency processing times are noted in the ledger above.

1
STEP 1
Confirm residential scope and $600+
MCL 339.2401 / 339.2403
2
STEP 2
Complete 60-hour prelicensure course
LARA-approved sponsor
3
STEP 3
Apply — Residential Builder ($195)
LARA BCC (Accela or paper)
4
STEP 4
Pass the PSI exam
PSI (after LARA approval)
5
STEP 5
Company license as qualifying officer
LARA BCC — $195
6
STEP 6
Pull first permit
Local enforcing agency
§ 05 · Compliance Checklist

Check them off.

Each item names the issuing authority, cycle, and citation.

01
Confirm the job is 'residential'
Detached 1- or 2-family dwelling, or a townhouse of not more than 3 stories with separate egress. Anything else is outside Article 24.
STATESCOPEMCL 339.2401(c)
LARA BCCIssuing authority
02
License the company separately
An LLC or corporation is a new legal person and needs its own company license with you as qualifying officer.
STATEENTITYLARA Builder FAQ
LARA BCCIssuing authority
03
Keep a Michigan business address
A physical Michigan place of business is required — no P.O. box; each additional location needs a branch office license.
STATEESSENTIALMCL 339.2404(4)
LARA BCCIssuing authority
04
Report control changes within 10 days
Changes in partners, directors, officers, or trustees must be reported to the department within 10 days.
LEGALDEADLINEMCL 339.2411(2)(g)
LARA BCCIssuing authority
05
Never divert project funds
Using money received for one project on another obligation is a licensee violation, as is abandoning a contract without legal excuse.
LEGALWARNINGMCL 339.2411(2)(a)–(b)
YouIssuing authority
06
Log continuing competency
21 hours per 3-year cycle with at least 1 hour each in codes, safety, and legal issues.
RENEWALEDUCATIONMCL 339.2404b(2)
Approved providersIssuing authority
§ 06 · Enforcement

What the law does about unlicensed general contracting work.

Statutory consequences with their citations — not estimates, not “commonly cited” guesses.

§
MCL 339.601(6)Statute

Unlicensed contracting

A first offense is a misdemeanor with a mandatory minimum fine; a second offense up to 2 years; an offense causing death or serious injury is a felony up to 4 years.

Consequence$5,000–$25,000 fine and/or up to 1 year
§
MCL 339.2412(1), (3)Statute

No suit, no lien

Unlicensed persons cannot bring an action to collect compensation, or impose a lien, for work that required a license.

ConsequenceNo right to payment or lien
§
MCL 339.2412(4)Statute

Civil fine

The Attorney General or a prosecuting attorney may also seek a civil fine against an unlicensed person.

Consequence$5,000–$25,000
§ 08 · Michigan FAQ

Questions general contracting contractors ask about Michigan.

Q01Do I need a contractor license in Michigan?+
For residential construction or remodeling on a 1- or 2-family home or a townhouse up to 3 stories, where the project totals $600 or more — yes, a Residential Builder or M&A license from LARA. For commercial general contracting, Michigan has no state license.
Q02What happens if I build without a license?+
You cannot sue to collect payment or file a lien (MCL 339.2412), and a first offense is a misdemeanor with a $5,000–$25,000 fine and up to 1 year in jail (MCL 339.601(6)). If the work causes death or serious injury, it is a felony.
Q03Does a commercial GC need anything from the state?+
No general contractor license — but electrical, plumbing, and mechanical work on a commercial job still must be done by contractors licensed under the Skilled Trades Regulation Act. Check the municipality for local rules.
Q04Does Michigan have reciprocity?+
No. LARA states Michigan holds no reciprocal agreements with any other state for builder or M&A licenses.
Q05Can I flip houses without a license?+
Only up to a point: buying, substantially rehabilitating, and reselling the same residential property more than twice in a calendar year makes you an M&A contractor, unless the work is hired out entirely to licensed contractors (MCL 339.2401(b)(ii)).
§ 09 · Sources

Primary authorities, not secondary summaries.

Every fact in this file was checked against these official sources on October 2026.

Pending verification: PSI examination fee for the builder / M&A exam (paid to PSI; not published on the LARA pages reviewed) · Market price of the 60-hour prelicensure course (set by each approved sponsor) · Whether a general liability or workers' compensation minimum applies to Article 24 licensees — not stated on the LARA pages or statute sections reviewed · Any local licensing of commercial general contractors by individual Michigan municipalities (LARA defers to each municipality)

General information, not legal advice. Always confirm requirements, deadlines, and forms with the issuing authority before filing or contracting.

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