Licensing Guide
Trade License Requirements in the United States
Whether you are picking up your first tool belt or formalizing a business you have been running for years, understanding licensing is step one. This guide covers the licensing landscape for nine of the most common trades — what is required, what it costs, and how often you need to renew.
Last updated March 29, 2026
Important Disclaimer
Licensing requirements vary significantly by state, county, and city. The information below is general guidance based on common requirements across the US. Always verify requirements with your state licensing board and local municipality before starting work. This guide does not constitute legal advice.
Know the Difference
Business License vs. Trade License
Business License
A general permit from your city or county that authorizes you to operate a lawful business at a specific location. Nearly every business in the US needs one regardless of trade.
- •Required in most cities and counties
- •Costs $50–$200 on average
- •Renews annually
- •Does not prove trade skill or qualification
Trade License
A specialized credential issued by a state licensing board that proves you are qualified to perform a specific type of work — like plumbing, electrical, or general contracting.
- •Required for regulated trades (plumbing, electrical, etc.)
- •Costs $50–$1,000+ depending on trade and state
- •Usually requires an exam, experience, or both
- •Proves competency and protects the public
By Trade
Licensing requirements for 9 common trades
Select any trade below to see what is typically required at the federal, state, and local level.
Plumbing
TradeKit for Plumbing →License Required?
License required in all 50 states. You will need either a journeyman or master plumber license depending on your experience level and the scope of work.
Common Requirements
- ✓2–5 years of apprenticeship under a licensed plumber
- ✓Pass a state plumbing exam
- ✓Liability insurance (typically $500K–$1M minimum)
- ✓Some states require workers' compensation insurance
Typical Cost Range
$50–$500 for exam + license fee
Renewal
Every 1–3 years with continuing education credits
Electrical
TradeKit for Electrical →License Required?
License required in most states. Typically a journeyman or master electrician license. A few states allow work under supervision without a personal license.
Common Requirements
- ✓4–5 years of apprenticeship (8,000+ hours)
- ✓Pass a state electrical exam (often NEC-based)
- ✓Liability insurance
- ✓Some states require a surety bond
Typical Cost Range
$50–$400 for exam + license fee
Renewal
Every 1–3 years with 12–36 hours of continuing education
License Required?
EPA Section 608 certification is required at the federal level for anyone handling refrigerants. Most states also require a state-level HVAC license or mechanical contractor license.
Common Requirements
- ✓Trade school diploma or apprenticeship program
- ✓Pass the EPA 608 exam (Types I, II, III, or Universal)
- ✓State exam where required
- ✓Liability insurance
Typical Cost Range
EPA certification ~$20–$150; state license $50–$400
Renewal
EPA 608 certification does not expire. State licenses renew every 1–3 years.
Landscaping
TradeKit for Landscaping →License Required?
Generally no state license required for basic lawn care, mowing, and garden maintenance. A pesticide applicator license is required for chemical treatments. A business license is required in most cities and counties.
Common Requirements
- ✓Pesticide applicator certification for chemical applications
- ✓Business license from your city or county
- ✓Liability insurance recommended (often required by commercial clients)
- ✓Vehicle and equipment insurance
Typical Cost Range
Business license $50–$200; pesticide certification $50–$100
Renewal
Pesticide certification renews every 1–5 years depending on state. Business license renews annually.
Painting
TradeKit for Painting →License Required?
No state license required in most states for residential painting. However, an EPA Lead-Safe (RRP) certification is mandatory when working on pre-1978 homes. A business license is required in most cities.
Common Requirements
- ✓EPA RRP certification for work on pre-1978 homes
- ✓Business license from your city or county
- ✓Liability insurance (highly recommended)
- ✓Lead-safe work practice training
Typical Cost Range
RRP certification ~$300–$500; business license $50–$200
Renewal
RRP certification renews every 5 years. Business license renews annually.
Roofing
TradeKit for Roofing →License Required?
License required in most states. Roofing is considered high-risk work, so licensing requirements tend to be stricter, often including mandatory insurance and bonding.
Common Requirements
- ✓Workers' compensation insurance (required in most states)
- ✓General liability insurance ($1M+ is common)
- ✓Surety bond ($5,000–$25,000 depending on state)
- ✓Some states require passing an exam or proving experience
Typical Cost Range
$200–$1,000+ for license; $5,000–$25,000 for surety bond
Renewal
Annually in most states with proof of active insurance and bond
Cleaning
TradeKit for Cleaning →License Required?
Generally no specific trade license required. A general business license from your city or county is needed to operate legally. Some states require bonding for residential cleaning services.
Common Requirements
- ✓Business license from your city or county
- ✓Bonding recommended (some states require it for residential work)
- ✓Liability insurance (highly recommended, often required by clients)
- ✓Background checks may be required for employee-based operations
Typical Cost Range
Business license $50–$200
Renewal
Business license renews annually
Handyman
TradeKit for Handyman →License Required?
Varies widely by state. Many states have a specific handyman exemption that allows unlicensed work on small jobs (typically under $500–$1,000 per project). Larger projects usually require a general contractor license.
Common Requirements
- ✓Business license from your city or county
- ✓Stay within your state's dollar-value threshold for unlicensed work
- ✓Liability insurance (highly recommended)
- ✓Cannot perform work requiring a specialty license (electrical, plumbing, HVAC)
Typical Cost Range
Business license $50–$200
Renewal
Business license renews annually
General Contracting
TradeKit for General Contracting →License Required?
License required in most states. General contractors typically need the broadest credential since they oversee entire projects and subcontractors.
Common Requirements
- ✓2–5 years of documented construction experience
- ✓Pass a state contractor exam (business + trade sections)
- ✓General liability insurance ($1M+ is standard)
- ✓Surety bond ($5,000–$50,000+ depending on state and project size)
Typical Cost Range
$200–$1,000+ for license; $5,000–$50,000 for surety bond
Renewal
Annually with continuing education in most states
Quick Reference
License requirements at a glance
| Trade | License | Typical Cost | Renewal | Bond Required? |
|---|---|---|---|---|
| Plumbing | All 50 states | $50–$500 | 1–3 years | Rarely |
| Electrical | Most states | $50–$400 | 1–3 years | Some states |
| HVAC | Federal + most states | $20–$400 | 1–3 years (state) | Rarely |
| Landscaping | Business only | $50–$200 | Annual | No |
| Painting | RRP for pre-1978 | $300–$500 (RRP) | 5 years (RRP) | No |
| Roofing | Most states | $200–$1,000+ | Annual | Yes ($5K–$25K) |
| Cleaning | Business only | $50–$200 | Annual | Sometimes |
| Handyman | Exemption < $500–$1K | $50–$200 | Annual | Rarely |
| General Contracting | Most states | $200–$1,000+ | Annual | Yes ($5K–$50K) |
FAQ
Common licensing questions
Do I need a license to start a trade business?
It depends on the trade. Plumbing and electrical work require a license in virtually every state, while cleaning and basic landscaping generally do not require a trade-specific license — though a general business license is almost always needed.
What is the difference between a business license and a trade license?
A business license is a general permit from your city or county that allows you to operate any lawful business. A trade license (or contractor license) is a specialized credential that proves you are qualified to perform a specific type of work, such as plumbing or electrical.
How much does it cost to get a trade license?
Costs vary widely. Exam and license fees typically range from $50 to $500 for most trades. Bonding requirements for roofing and general contracting can add $5,000 to $50,000 depending on the state and project size.
Do trade licenses expire?
Most state trade licenses must be renewed every 1 to 3 years, often with continuing education requirements. The EPA 608 certification for HVAC technicians is a notable exception — it does not expire.
Can I do handyman work without a license?
In most states, yes — for small jobs. Many states have a handyman exemption that allows unlicensed work on projects under $500 to $1,000 per job. Anything above that threshold typically requires a contractor license. You will still need a general business license in most cities.
What happens if I work without a required license?
Penalties vary by state but can include fines ranging from hundreds to thousands of dollars, misdemeanor or felony charges for repeat offenses, inability to place liens on properties for unpaid work, and voided insurance coverage.
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