How to Get a Michigan Builders License

Want to become a licensed contractor, handyman, or home renovator in Michigan, but you’re not sure how to get started?

In this guide, we provide everything you need to know about getting a State of Michigan builders license so you can spend less time figuring out what license to apply for and more time growing your business.

Who Needs a Builders License in Michigan?

If you plan to work on building or renovation projects valued at more than $600, you’ll need a residential builders license or a maintenance and alterations contractor license¹.

How Do I Get a Builders License in Michigan?

Before we dive into the details of the Michigan builders license application, let’s talk about a few things you should first be aware of.

In Michigan, the license you apply for will entirely depend on the scope of the projects you plan to take on and the total value of those projects. These criteria will determine whether your license will be handled at the state or local level. We’ll discuss those details in more depth further on.

How to Obtain a Builders License in Michigan. 

Below are a few essential things to note before you get started:

• All contractors are required to register with the Michigan Department of Treasury².
• Any project costing over $600 requires a residential builder’s license or a maintenance and alteration contractor’s license. These licenses must be obtained through the Michigan Licensing and Regulatory Affairs Department³, where they are regulated at the state level.
• There are pre-licensure courses that all applicants must take¹. Each Michigan builders license course will have its own focus such as these: The Michigan Residential Code; Contracts, Liability, and Risk Management; and Marketing and Sales.

What Does a Michigan Builders License Allow You to Do?

There are three types of licenses⁴ you can apply for. Each license allows you to perform specific types of work.

1. Michigan Builders License

This license is for contractors who build homes or perform repairs on established homes. While this license covers contracting for the whole job, subcontracting is required for plumbing, electrical, HVAC, and other work. These types of trades are covered by a maintenance and alteration license.

2. Michigan Maintenance and Alteration Contractors License

The following trades are covered under this State of Michigan alteration contractors license³:

• Carpentry
• Concrete
• Excavation
• Insulation Work
• Masonry
• Painting and Decorating
• Siding
• Roofing
• Screen and Storm Sash
• Gutters
• Tile and Marble
• House Wrecking
• Swimming Pools
• Basement Waterproofing

Whether you choose to be a residential or maintenance and alteration contractor, you’ll complete the same form. For more details on the two types of licenses, check out the Michigan Department of Licensing and Regulatory Affairs Licenses and Requirements website.

3. Michigan Commercial Builders License

This builder’s license is different from the other two, since the state doesn’t govern it⁴. If you’re going to work on school buildings, offices, and other commercial buildings, that license will go through your municipality.

What Are the Requirements for a State of Michigan Builders License?

Now that we’ve covered the types of licenses you can apply for, let’s discuss the requirements. Depending on the license you want to pursue, the Michigan builders license application requirements may vary¹, but generally, all applicants must:

• Be 18 years or older
• Have a valid Michigan driver’s license
• Complete 60 hours of pre-licensure courses
• Pass the residential or maintenance and alteration contractor exam
• Pay all application and license fees

Approved pre-licensure courses

As I mentioned above, one of the requirements for licensure is to complete 60 hours of approved courses. Each Michigan builders license course has its own topic, ranging from marketing and sales to MIOSHA Construction Safety Standards. To view all approved courses, check out the Michigan Department of Licensing and Regulatory Affairs website, or reach them at 517-373-8068.

How difficult is a Michigan builders license course?

Each course is designed to teach you what you need to know to pass the required builders license exam, so paying attention is essential. In Michigan, all contractor exams are issued through PSI Exams⁵. The exam varies in cost, based on how many sections you must take as required by the Michigan builders license you are applying for. You’ll pay for this at the time of the exam.

Pay the associated fees

Finally, when you submit your application, you’re required to pay the application fee of $195 — either via a check or money order. If you’re an Armed Forces Veteran, you may be eligible to have the application fee waived at the time of the exam.

Renewing your Michigan Builder license

It’s fairly easy to renew your contractor’s license online. Renewal fees may vary, based on your type of license.

Register Your Business with the Michigan Department of Treasury.

A crucial step in the Michigan builders license application process is registering your business. All applicants must register their business through the Michigan Department of Treasury. Fortunately, this process can be done online, which is a huge time-saver.

If you have any questions regarding this process, visit michigan.gov/treasury or call 517-636-4660.

We Can Help with Insurance

While liability insurance is not required for contractors in Michigan, workers’ compensation often is required if you have employees. While meeting requirements is important, so too is protecting the business you’re building. That’s a key reason for considering builders insurance. 

With Simply Business, finding affordable insurance is fast and easy. You can compare free business insurance quotes from top insurers online 24/7 and get insured in under 10 minutes. 

When we refer to “builders insurance,” we mean any one or combination of multiple business insurance policies that will help cover an applicable business. Coverage might include general liability, inland marine, and/or professional liability. 

Still not sure what you need? No worries. Our licensed insurance agents can review coverage options with you via the phone. They’re here to help at 844-654-7272, Monday-Friday, 8 a.m.-8 p.m. (ET).

More Resources for Your Business

As a new builder, you have a long checklist of things that need to be done. Luckily, we have a shortcut to help your small business. Our online resource center has valuable information, free tools and templates, and helpful articles to keep you in the loop with everything you need to know regarding your industry. 

We’ve even handpicked these articles to help get your building business up and running. 

General Contractor Insurance: Everything You Need To Know

How to Find Handyman Jobs Online

FREE Contractor Invoice Template

References:

(1) Learn more at procore.com/library/michigan-contractors-license

(2) Learn more at michigan.gov/taxes

(3) Learn more at michigan.gov/lara

(4) Learn more at michiganbuilderslicense.com/blog/post/how-and-why-to-get-a-michigan-builders-license

(5) Learn more at candidate.psiexams.com