In Minnesota, contractors must be licensed with the state and as part of that process, they must secure a Minnesota Contractor License Bond. In Minnesota, contractors are required to be bonded by both their specialty and local jurisdiction. For example, there is an electrical contractor bond that all electrical contractors must get, and there is a City of Alexandria that contractors in Alexandria has to get. If you are an electrical contractor within the city of Alexandria, Minnesota, then you will need to acquire both bonds. The bond exists to guarantee that contractors working in Minnesota will perform work in an adequate manner when carrying out their responsibilities.
Here is a pricing table for various Minnesota Contractor License bond types. We include the bond amount and starting prices:
Contractor licensing in Minnesota is regulated by the Minnesota Department of Labor and Industry (DLI). The DLI oversees all contractor licensing within the state to ensure contractors meet the required qualifications and comply with applicable laws and rules in Minnesota.
The DLI has separate phone lines and emails for handling different concerns related to contractors.
For licensing, bonds, and continuing education inquiries, call 651-284-5034 or email at dli.license@state.mn.us.
For licensing exam related questions, you can contact DLI via email at dli.exam@state.mn.us.
If you wish to file a complaint against a contractor, please email dli.contractor@state.mn.us or call 651-284-5069.
There are two types of licenses one can apply as a general contractor in Minnesota:
The initial step is completing a pre-license examination to obtain a general contractor license. The applicant must pass this examination before an applicant can proceed with submitting the necessary application documents to the DLI. The pre-license exam serves as a means to assess the knowledge, competence, and understanding of the contractor's work.
After the applicant completes the pre-license examination, they are prepared to proceed with all the necessary steps for the Minnesota contractor application process. Here's a concise overview of the actions the applicant needs to take to apply:
Step 1 - Start Your Business in Minnesota: Before applying for a new license, choose a business structure for your entity. You can either register a business as a sole proprietorship, LLC, partnership or corporation. Each has their pros and cons. Sole proprietorships are suitable for solo contractors looking to get started quick. LLCs and corporations are more heavy corporate structures suitable for contractors looking to build a company with employees or raise outside funding. Either way, regardless of what type of business you decide to register, you need to register it with the Minnesota Secretary of State. All it takes is an online application and paying the filing fees.
Step 2 - Obtain a Tax ID & Employment Insurance (For LLCs, partnerships & corporations): If you're not a sole proprietor, you will need to obtain Federal Employer Identification Number (FEIN) for tax filing purposes. Sole proprietors can use their social security number for filing taxes.
Step 3 - Obtain liability insurance and workers comp: All general contractors in Minnesota are required to have valid general liability insurance and workers comp. Most commercial insurance brokers will be able to help with us. Personally we recommend Next Insurance.
Step 4 - Gather Required Information for the License Application: Ensure you have the necessary information for completing the new license application. You will need the following information:
Step 5 - Submit the application and pay the Licensing Fee: The next step is to fill in application for general contractor and submit it to the DLI. The licensing fee that goes along with the application depends on your anticipated gross annual receipts:
The application must be mailed to the following address:
PO Box 64217
St. Paul, MN 55164-0217
Keep in mind that the license needs to be renewed every two years once it's obtained in Minnesota.
If you do any of the following, you are considered a specialty contractor in Minnesota:
A specialty contractor who provides services in multiple skill areas mentioned above must be licensed in Minnesota. Specialty contractors with only one skill are not required to have a Minnesota state contractor license. To get a specialty contractor license in Minnesota, one must apply through the iMS online application.
In Minnesota, electrical work encompasses installing, modifying, repairing, designing, or arranging electrical wiring, devices, or equipment used for lighting, heating, power supply, technology circuits, systems, or other functions. To be an electrical contractor in Minnesota, the individual must:
Step 1 - Qualify:
Step 2 - Insurance Proof:
Step 3 - Minnesota Contractor License Bond:
Step 4 - Disclosure of Business Information:
Step 5 - License Application:
A plumbing contractor license is required for plumbing work in Minnesota communities with a population over 5,000. To become a licensed plumbing contractor in the state of Minnesota, the process closely resembles obtaining an electrical contractor license, and the individual must:
Step 1 - Qualify:
Step 2 - Insurance Proof:
Step 3 - Minnesota Contractor License Bond:
Step 4 - Disclosure of Business Information:
Step 5 - License Application:
You must obtain the necessary contractor license in Minnesota to be eligible to perform contracting work within the state. Contracting activities without the required license in Minnesota are subject to criminal charges, including fines, penalties, and potential legal action. It is crucial to comply with Minnesota's licensing requirements to operate as a contractor legally and avoid potential legal issues.
