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GENERAL CONTRACTING x MINNESOTA

General Contracting contractor requirements in Minnesota.

Under Minn. Stat. § 326B.805, a residential building contractor (new homes and improvements) or residential remodeler (existing homes only) must be licensed by the Department of Labor and Industry. The trigger is contracting with an owner of 1–4 family residential real estate to provide two or more of the eight special skills defined in § 326B.802, subd. 15. Each license needs a qualifying person who passes DLI's exam and then completes 14 hours of continuing education every two years.

The license costs $180 plus a Contractor Recovery Fund fee scaled to gross annual receipts — $320, $420, or $520 — and runs two years, expiring March 31. Licensees must carry liability insurance and prove workers' compensation compliance. Commercial general contracting has no state license; commercial builders register with DLI under § 326B.701 instead, and electrical and plumbing work still requires DLI-licensed contractors.

STATE LICENSE
ConditionalMinnesota Department of Labor and Industr…
STATUTE
Minn. Stat. §§ 326B.802–326B.885 (§ 326B.805)
RENEWAL
2 years — March 3114 hrs / 2 yrs for the qualifying person (1 Energy Code, 1 business management)
VERIFIED
October 2026Official sources
FILE · GENERAL CONTRACTING x MINNESOTA
Compliance Dossier
Public
File
October 2026
STATE AUTHORITYMinnesota Department of Labor and Industry (DLI) — Construction Codes and Licensing
STATUTE / CODEMinn. Stat. §§ 326B.802–326B.885 (§ 326B.805)
SCOPEStatewide · Minnesota
RENEWAL2 years — March 31
CONTINUING ED.14 hrs / 2 yrs for the qualifying person (1 Energy Code, 1 business management)
LOCAL OFFICES4 counties on file
FILE GENERAL CONTRACTINGSCOPE STATEWIDE · MINNESOTATYPE VERIFIED RULE FILE
VERIFIED October 2026STATUS PUBLIC REFERENCE
What this file settlesThe Minnesota rules for general contracting contractors, verified against official sources.
LICENSE TRUTH
Minnesota licenses residential general contractors — anyone contracting with a homeowner for two or more special skills needs a DLI building contractor or remodeler license — but has no state license for commercial general contracting.
STATE ↔ LOCAL
The residential license is statewide, but DLI notes that cities and counties may require their own license from state licensees doing commercial work and from Certificate of Exemption holders. Building permits and inspections are local under the State Building Code; permit offices check the state license number.
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 Minnesota.

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 LICENSE
DLI (Minn. Stat. § 326B.805)
BUILDING CONTRACTOR / REMODELERQUALIFYING PERSONRECOVERY FUND FEE
STATE — COMMERCIAL
DLI (Minn. Stat. § 326B.701)
CONTRACTOR REGISTRATIONLICENSED ELECTRICAL / PLUMBING SUBS
LOCAL — WHERE YOU BUILD
City / county building official
BUILDING PERMITSLOCAL CONTRACTOR LICENSES

Read it bottom-up.

The residential license is statewide, but DLI notes that cities and counties may require their own license from state licensees doing commercial work and from Certificate of Exemption holders. Building permits and inspections are local under the State Building Code; permit offices check the state license number.

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

Source · Minnesota Department of Labor and Industry (DLI) — Construction Codes and LicensingLast 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 Building Contractor / Remodeler LicenseTwo or more special skills for a homeowner
DLI
$500 / $600 / $700 by receipts tier ($180 license + $320 / $420 / $520 recovery fund)
2 years, March 31
Minn. Stat. § 326B.805, subd. 1
REQUIRED
Qualifying Person ExamNo prerequisite experience; 30-day wait to retake
DLI
$50
Before license
Minn. Stat. § 326B.805, subd. 4
REQUIRED
General Liability InsuranceCertificate kept on file with DLI
MN-licensed insurer
$100k/$300k BI + $25k PD, or $300k single limit
Before license
Minn. Stat. § 326B.86, subd. 2
REQUIRED
Workers' Compensation ComplianceShown on a DLI-approved form
Carrier / DLI
By payroll
Before license
DLI residential contractor licensing
REQUIRED
Contractor Recovery Fund FeePaid with every application and renewal
DLI
$320 / $420 / $520 by receipts
Each 2-year term
Minn. Stat. § 326B.89, subd. 3
REQUIRED
Certificate of ExemptionReceipts of $15,000 or less from licensable work
DLI
$10
Annual affidavit
Minn. Stat. § 326B.805, subd. 6
OPTIONAL
Contractor Registration (commercial)Commercial builders without a residential license
DLI
No fee published by DLI
Expires Dec 31, odd years
Minn. Stat. § 326B.701
CONDITIONAL
Building PermitWhere the State Building Code requires one
City / county building official
Set by municipality
Per project
Local code
CONDITIONAL
§ 03 · Year-One Cost

What it costs to start general contracting in Minnesota.

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
Minnesota · General Contracting
Qualifying person examPaid per attempt$50
License — tier 1< $1M receipts: $180 license + $320 recovery fund$500
License — tier 2$1M–$5M receipts: $180 + $420$600
License — tier 3> $5M receipts: $180 + $520$700
RenewalTier 1/2/3; includes $5 CE fee$505 / $605 / $705
Liability insurance§ 326B.86 minimumsMarket premium
Year-one floor$550 in state fees for a tier-1 shop (exam + license) + insurance
Excludes tools, vehicle purchase, payroll, and marketing.
NOTE
The recovery fund is most of the fee

Of the $500 tier-1 license cost, $320 is the Contractor Recovery Fund fee. The fund can pay homeowners up to $100,000 per claimant and $550,000 total per licensee — and a payout automatically suspends the license.

NOTE
Builder vs. remodeler

The remodeler license covers existing homes only. Building a new home or detached garage requires the residential building contractor license.

NOTE
Commercial is registration, not licensing

No state license exists for commercial general contracting. Commercial builders register with DLI, and municipalities may layer on their own licenses.

§ 04 · Path to First Job

From day zero to first inspection.

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

1
STEP 1
Designate a qualifying person
Owner, partner, or officer
2
STEP 2
Pass the DLI exam
DLI — $50
3
STEP 3
Bind liability + workers' comp
Carrier
4
STEP 4
Apply for the license
DLI — $500–$700
5
STEP 5
Pull permits under your license number
City / county building official
6
STEP 6
14 CE hours; renew by March 31
DLI-approved providers
§ 05 · Compliance Checklist

Check them off.

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

01
License before you sell two skills
Contracting with a homeowner for two or more special skills without a license is prohibited.
STATEESSENTIALMinn. Stat. § 326B.805, subd. 3
DLIIssuing authority
02
Keep the insurance certificate on file
DLI must hold a current certificate; the insurer notifies DLI of cancellation.
INSURANCEESSENTIALMinn. Stat. § 326B.86, subd. 2
CarrierIssuing authority
03
Report changes within 15 days
Address, ownership, qualifying-person, judgment, and bankruptcy changes go to DLI in writing; criminal convictions within 10 days.
STATEREPORTINGMinn. Stat. § 326B.805, subd. 5
LicenseeIssuing authority
04
Never lend your license number
Pulling a permit for an unlicensed person, or letting one use your number, is grounds for sanction.
LEGALPERMITSMinn. Stat. § 326B.84, clause 12
LicenseeIssuing authority
05
Complete 14 CE hours
Every two years, including 1 hour of Energy Code and 1 hour of business management.
RENEWALEDUCATIONDLI license renewals
Qualifying personIssuing authority
06
Follow pre-1978 renovation rules
Licensees renovating pre-1978 homes must meet § 326B.106, subd. 14.
SAFETYPRE-1978Minn. Stat. § 326B.805, subd. 1a
LicenseeIssuing authority
§ 06 · Enforcement

What the law does about unlicensed general contracting work.

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

§
Minn. Stat. § 326B.082, subds. 7 and 12Statute

Administrative penalty

DLI may issue administrative and licensing orders against unlicensed or unregistered contracting; each day a violation continues past a correction deadline counts separately.

ConsequenceUp to $10,000 per violation
§
Minn. Stat. § 326B.082, subd. 16Statute

Criminal violation

Violating an applicable law under DLI's jurisdiction is a misdemeanor unless another statute provides otherwise.

ConsequenceMisdemeanor
§
Minn. Stat. § 326B.082, subd. 10Statute

Stop work order

DLI may order business operations stopped at one or more worksites; operating in violation of a final stop order carries a daily civil penalty.

Consequence$5,000 per day
§ 08 · Minnesota FAQ

Questions general contracting contractors ask about Minnesota.

Q01Do I need a general contractor license in Minnesota?+
For residential work, yes — if you contract with a homeowner for two or more special skills you need a DLI residential building contractor or remodeler license (§ 326B.805). For commercial work there is no state GC license; you register with DLI under § 326B.701.
Q02How much does the Minnesota residential contractor license cost?+
$180 plus a Contractor Recovery Fund fee based on gross annual receipts: $500 total under $1 million, $600 from $1–5 million, $700 over $5 million. Renewals are $505, $605, or $705, and the qualifying person's exam is $50.
Q03What insurance is required?+
Commercial general liability of at least $100,000 per occurrence and $300,000 aggregate for bodily injury plus $25,000 property damage, or a $300,000 single-limit policy (§ 326B.86, subd. 2), plus workers' compensation compliance.
Q04Is there a small-contractor exemption?+
Yes. If your gross annual receipts from licensable residential work are $15,000 or less, you can hold a Certificate of Exemption ($10, renewed yearly by affidavit). Exceed $15,000 and you must surrender it and apply for a license immediately.
§ 09 · Sources

Primary authorities, not secondary summaries.

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

Pending verification: DLI's published liability-insurance wording differs by page: the residential contractor licensing page matches § 326B.86, but the roofer license page states $300,000 per occurrence with $10,000 property damage — the statute is followed here · Whether an unlicensed residential contractor may enforce a mechanic's lien or contract claim in Minnesota (not confirmed in the sections reviewed) · The specific lead-safe work practices required by § 326B.106, subd. 14 for pre-1978 renovation (§ 326B.805, subd. 1a cross-references it; the subdivision text was not retrieved) · The substance of the 2024 amendments to § 326B.082 and § 326B.701 (2024 c 127 art 10) — the revisor history lists them, but the changed provisions were not compared line by line · Whether DLI charges a fee for construction contractor registration (§ 326B.701 and the DLI registration page state none; the July 2025 fee schedule does not list registration)

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

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