How to Get a General Contractor License in North Carolina

If you are running a construction business in North Carolina, there is a good chance you need to get a General Contractor License. 

Who needs a NC General Contractor License? Any contractor taking on projects worth $40,000 or more requires a license from the North Carolina Licensing Board for General Contractors (NCLBGC). The cost of getting said license varies depending on the type of license you need and the value of projects you take on. 

Our guide below breaks down all the details. It covers which general contractor license you should get, how to get a NC contractor license bond, license requirements, the application process, contractor exams, and more.

Step 1: Pick Your North Carolina License Classification 

The type of North Carolina contractor license that a business or individual needs depends on the type of work they plan to undertake. There are five possible classifications, and you may apply for more than one. 

For more information, see NCAC Title 21 Chapter 12A .0202. 

Step 2: Know Your North Carolina General Contractor Limitations

Your general contractor limitation determines the value of the projects that you can take on. There are three tiers to choose from:

• Limited – Up to $750,000.00 on any single project 
• Intermediate – Up to $1,500,000.00 on any single project 
• Unlimited – No value restrictions 

Step 3: Meet Financial Requirements

All applicants must demonstrate financial responsibility through assets or a surety bond. The amount of said assets or surety bond directly relates to the limitation tier you are applying for. You only need a surety bond if you cannot fulfill the asset requirement. 

Important: If you require a surety bond, it doesn’t mean you’ll need one forever. You won't need to renew your bond once you have enough working capital or net worth. 

Step 4: Get a Surety Bond

If you do not meet the financial requirements outlined in Step 3, you will need to get a North Carolina Contractor License Bond. This bond is also commonly called a general contractor bond, contractor bond, or contractor license bond. 

This surety bond costs a small fraction of the full required bond amount (generally 1% - 5% for those with good credit), and it is easy to apply for. 

1. Get a free quote for a contractor bond.
2. Once you get your quote and approval, sign the indemnity agreement and pay for the bond.
3. A copy of your bond will be emailed to you. The original bond will be sent by mail. 

Have bad credit? We offer contractor bonds to those with credit issues. Just this week, one of our agents worked with a contractor who got denied by other surety companies due to his low credit. Thanks to the large volume of bonds we underwrite, we were able to get him bonded through our bad credit surety bonds program.

Do I also need insurance to get a general contractor license in North Carolina? There is currently no general contractor insurance requirement for this license. However, business insurance is often needed to bid on projects and conduct daily operations. 

Step 5: Complete Your Licensure Application

Get a New License Application from the NC Licensing Board for General Contractors (NCLBGC). To successfully fill out the paperwork, you will need:

• Social Security Number of examinees and qualifiers.
• Tax identification numbers (corporate applicants).
• Name of business under which the licensee will be operating (if any).
• Information and court records for all crimes for which the applicant has been convicted.
• Information establishing financial responsibility, such as financial statements and a surety bond.
• Three letters of reference. 

Step 6: Submit Your Application & Fees

Current application fees are as follows:

Limited license: $75

Intermediate license: $100

Unlimited license: $125

Completed applications and cheques should be mailed to:

North Carolina Licensing Board for General Contractors 
5400 Creedmoor Rd 
Raleigh, NC 27612

Step 7: Take Your License Exam

Successful applications will be mailed an exam eligibility letter within 2 - 3 weeks.  

License exams are currently administered by PSI Exams. While the license applicant can take the exam, it can also be completed by another individual meeting the requirements to be a qualifier on the license. 

Exam Exemptions and Reciprocation:

• Individuals may transfer previous exams, such as the North Carolina NASCLA Exam (National Association of State Contracting Licensing Agencies Exam). 
• Individuals that passed the NASCLA National Accredited Building Exam or the proper exams in Georgia, Louisiana, Mississippi, South Carolina, or Tennessee may qualify for an exam waiver.

Have questions? Visit the Board website at www.nclbgc.org for more information on licensing. For questions about contractor surety bonds, contact one of our surety experts online or at (888) 592-6631.

A licensee and qualifier may be the same person, but they don’t have to be. 

• Licensee: the person, firm, corporation, LLC, or partnership who holds the NC contractor license. 
• Qualifier: an individual who has successfully passed the exam issued by the NC Board of General Contractors. All licensees must be connected to a qualifier (ex. working at the same company as them). If that qualifier leaves, a new one must be brought in. 

You will see both these terms in your license application, so it is important to understand what each is. 

All general contracting license applicants must meet the following criteria. 

• Age – be at least 18 years of age.
• Character – possess good moral character as determined by the Board.
• Finances – provide evidence of financial responsibility as determined by the Board. 
• Secretary of State Registration – companies applying for a license must be registered. 
• Background Check – consent to a criminal background check, if required.
• Financial Statement – an audited financial statement for those who have been in bankruptcy within five years prior to the application filing.
• Qualifier - Have a qualifier working for their company OR be willing to take the exam themselves/have someone take the exam to become a qualifier on their behalf. 

It takes approximately 1 to 2 months to become a licensed general contractor in North Carolina state. 

This timeline includes: 2 - 3 weeks for a general contracting license to process and 2 - 4 weeks for exam scheduling and processing.

General contractor licenses need to be renewed yearly. 

All licenses expire on January 1st each year and go invalid 60 days after expiration. License renewal applications must be received by January 1st to avoid a late fee.