How to Get a Contractor's License in Tennessee
Tennessee requires a contractor's license for projects of $25,000 or more. Below are the steps, including the Reviewed Financial Statement the Board requires. I prepare these within 3 business days, 100% remotely.
Do You Need a Tennessee Contractor License?
You need a contractor license before you bid or contract on any project of $25,000 or more in Tennessee. That applies to prime (general) contractors and many subcontractors — anyone offering to oversee or perform construction.
Already licensed?
Raising your monetary limit requires a reviewed financial statement (up to $3 million) or a surety bond.
TN rules →
Renewing a license over $1.5 million? You need a compiled financial statement prepared by a licensed CPA or a surety bond.
TN rules →
4 Steps to Your Tennessee Contractor License
These are the Tennessee Board for Licensing Contractors' own four steps to getting your contractor license. Most of the time goes into the first two steps: the exam and the reviewed financial statement.
Testing: Exam and Reciprocity
Pass the Business and Law exam. Some classifications also need a trade exam. Exams are open-book and typically valid for 2 years. Some out-of-state license holders can get a trade exam waiver.
Financial Statement
A reviewed financial statement from a licensed, independent CPA, less than 12 months old, for limits up to $3,000,000.
This is where I come inLetter of Reference, Proof of Insurance and Contractor's Affidavit
A reference letter (not from a family member), general liability and workers' compensation coverage, and a notarized affidavit.
Corporations, LLCs and Other Entities
Secretary of State registration for corporations and LLCs, plus a business tax license for each city or county where you work.
The Financial Statement Requirement
The Board uses your financial statement to set your monetary limit, which is the largest single project you can take on.
Since July 1, 2026, you have two ways to meet it:
#1: Reviewed financial statement
- Prepared by a licensed, independent CPA
- Less than 12 months old
- Covers monetary limits up to $3,000,000
- Your limit is based on your own numbers
- A one-time cost each time you file
#2: Surety bond option
- New as of July 1, 2026
- Bond of at least 50% of the monetary limit you request
- Uses the Board-approved bond form
- One continuous bond (you pay premiums every year). If it lapses, your license becomes invalid.
Not sure which option is best for you?
I'll walk you through both on a quick call.
Source: Tennessee Public Chapter 1039 (2026), Sections 24, 25, 27 and 28.
How Tennessee Sets Your Monetary Limit
Your limit is based on the financial statement you submit. For example, a $500,000 limit needs at least $50,000 in both working capital and net worth.
If your numbers come in short, a guaranty agreement or a line of credit can help support the limit you need.
I'll tell you on the first call what limit your numbers support and how to close any gap.
Options to support your limit →
Get Your Reviewed Financial Statement Without an Office Visit
Everything happens by phone, text and email. You work directly with me from start to license approval.
Call or email
We talk through your license, your business and the monetary limit you need.
Send your documents
You email or upload the documents I request.
I prepare and review
I build the statements, run the review procedures and ask any follow-up questions.
Submit to the Board
You receive the reviewed financial statement, ready to file with your application.
Tennessee Contractor License FAQ
Do I need a Tennessee contractor license for jobs under $25,000?
A Tennessee contractor's license is required before bidding or contracting on projects of $25,000 or more. Masonry contractors need a license for projects of $100,000 or more.
Is the Tennessee Business and Law exam open-book?
Yes. The Board says its exams are open-book and typically valid for two years. Some license classifications also require a trade exam.
What financial statement do I need for a new Tennessee contractor license?
A reviewed financial statement prepared by a licensed, independent CPA, less than 12 months old, for monetary limits up to $3,000,000. Since July 1, 2026, a surety bond of at least 50% of the requested limit can be used instead.
Can I use a surety bond instead of a financial statement?
Yes. Since July 1, 2026, Tennessee accepts a surety bond of at least 50% of the requested monetary limit, on the Board-approved form, in place of a financial statement for new licenses, limit increases and renewals. The bond must stay in force as long as you hold the license, with a premium due each year. If it lapses, the license becomes invalid.
How long does a reviewed financial statement take?
Most of my reviews are completed within 3 business days from the day I receive your documents.
Do I need to visit an office?
No. The entire process is done by phone, text and email.
Work Directly With Andy Ellis, CPA
- This is all I do: Financial statements for contractors only.
- No staff: Every conversation is with me, the decision maker.
- Peer-reviewed CPA: Independent quality review.
- 500+ contractors served: I know what the Board approves.
- Help 7 days a week: new licenses, renewals, & limit increases.
- 5.0 rating on Google: with 120+ client reviews.
Ready for Step #2?
Call now and I'll tell you exactly what your reviewed financial statement needs and what monetary limit your numbers support.
Serving Tennessee, Alabama, Mississippi and North Carolina contractors