Alabama to Arkansas: general contractor license reciprocity
Arkansas has a reciprocity agreement with Alabama: a Alabama general contractor can get a Arkansas license without retaking the trade exam.
Reference only, not legal advice. Rules change; confirm with the licensing board before you apply. Full disclaimer.
Reciprocal agreement with Alabama (commercial licenses)
A signed state-to-state agreement. The trade exam is waived; you apply, prove your history, and pay the fee.
Arkansas has a signed reciprocal agreement with Alabama. An applicant who has held a valid Alabama contractor license for at least one year may file the Arkansas Reciprocal Form with a Commercial New Application and is then not required to pass the Arkansas Business and Law examination, which is the only examination the Board itself requires. The applicant completes the top of the Reciprocal Form, sends it to the Alabama licensing board to complete the bottom section with the license number, first-licensed date, current status, classifications, business and law score and any disciplinary history under the state seal, and returns the finished form to Arkansas. The agreement waives the examination only. The $100 filing fee, the $10,000 contractor's bond, the CPA financial statement for the classification sought, Secretary of State filings and the workers' compensation certificate are all still required, and the Board keeps the right to investigate the applicant and to ask for anything else it needs.
The Board does not publish a start date for this agreement, nor a table matching Alabama classifications to Arkansas ones; the Alabama board certifies the classifications held and the Board decides what it will grant. A form notarised more than ninety days before it reaches the Board is refused. Applicants seeking plumbing, electrical, HVACR or another classification that carries an Arkansas trade license must still satisfy that trade agency separately.
At a glance
- Trade exam
- Waived
- Law / code exam
- Not required
- Out-of-state hours
- Count toward eligibility
- Agreement
- Active
What you must already have
- You must have held your Alabama license for at least 1 year.Valid Alabama contractor license held for at least one year, as stated in the Board's Reciprocal Form Instructions.
- Your Alabama license must be active and in good standing.
- You must have no disciplinary action or unresolved complaints on your record.
What you'll do to get licensed in Arkansas
- 1Application fee. Pay the application fee ($100). Non-refundable, non-transferable $100 filing fee for a Commercial New Application. A new application and the required documentation are still needed; the agreement does not replace them..
- 2Surety bond. Post a surety bond ($10,000). Fully executed $10,000 contractor's surety bond in the principal name and EIN registered with the Secretary of State, filed with the power of attorney before the license is released..
- 3Financial responsibility. Show financial responsibility of at least $50,000. CPA-prepared financial statement less than one year old: compiled for a Restricted license, reviewed or audited for an Unrestricted license. Minimum business-related net worth is $50,000 for the Building classification, $20,000 for Light Building, Mechanical or Electrical and $5,000 for a specialty, with half the minimum held in cash. A surety bond of ten times the required net worth may be filed instead..
- 4Insurance. Carry the required insurance. Current certificate of workers' compensation insurance if the applicant has one or more employees..
- 5Business license. Obtain a business license. Articles or filings from the Secretary of State's office for a corporation, LLC, LP or LLP, plus any fictitious name registration. The bond must be in that registered name and EIN..
- 6Other. Reciprocal Form: the applicant completes and signs the top section, sends it to the Alabama licensing board for completion of the verifying-state section, and returns the finished form to the Contractors Licensing Board, 4100 Richards Road, North Little Rock, AR 72117. Getting the form to and back from the other state is the applicant's responsibility..
Published fees on this path total $100, excluding exam-vendor fees, bonds, and insurance.
What you'll need to buy or arrange
Surety bond
A license or contractor bond is bought from a surety, not the state. Price is a small percentage of the bond amount and depends on your credit.
- Surety bond · $10,000
Liability insurance
Some states require proof of general liability or workers' compensation coverage at licensing time.
- Insurance
Business registration
If you plan to contract in your own name, budget for a business license or entity registration on top of the trade license.
- Business license
How Arkansas licenses general contractors
Arkansas general contractor · “Commercial Contractor, Building classification (Restricted under $750,000 or Unrestricted)”
Statewide license
Issued by Arkansas Contractors Licensing Board
Arkansas licenses commercial contractors statewide through the Arkansas Contractors Licensing Board under the Arkansas State Licensing Law for Commercial Contractors, Act 150 of 1965 as amended (Ark. Code Ann. § 17-25-101 et seq.). A commercial license is required for any project other than a single-family residence once the cost, including labor and materials, reaches $50,000, and it comes in two tiers: a Restricted Commercial license, limited to projects under $750,000, and an Unrestricted Commercial license with no project cap. Within either tier the Board grants classifications, of which Building is the general building tier; the others are Heavy, Highway/Railroad/Airport, Municipal and Utility, Light Building, Mechanical, Electrical and a long list of specialties. The license is held by the business and supported by a qualifying party, an owner, officer, actively engaged LLC member or full-time employee who personally passes the examination, so an inbound contractor applies as or for the entity that will sign contracts. Eligibility rests on five years of appropriate experience or a passed examination, evidenced by three references, plus the Arkansas Business and Law examination, a $10,000 contractor's surety bond, a CPA-prepared financial statement meeting a net worth minimum set by classification, and workers' compensation cover if the business has employees. Holding a commercial license automatically authorizes residential work in the same classification.
Common questions
- Do I have to take the Arkansas general contractor exam if I'm licensed in Alabama?
- No. The trade exam is waived on this path under the agreement with Alabama.
- How long do I need to have held my Alabama license?
- At least 1 year before applying.
- What does it cost to get a Arkansas general contractor license from Alabama?
- Published fees on this path total $100, not counting exam vendor fees or bonds.
- Do my Alabama work hours count in Arkansas?
- Yes. Documented out-of-state experience counts toward Arkansas's eligibility requirements.
Sources
- Arkansas Contractors Licensing Board - Arkansas Department of Labor and Licensing · Arkansas Contractors Licensing Board (Arkansas Department of Labor and Licensing) · Agency Page · verified September 17, 2026
- State of Arkansas Contractors Licensing Board - Commercial New Application (Effective 1/2025) · Arkansas Contractors Licensing Board · Form · verified September 17, 2026
- Arkansas State Licensing Law for Commercial Contractors, Act 150 of 1965 as amended - Arkansas Code and Rules (April 2026) · Ark. Code Ann. §§ 17-25-101, 17-25-103, 17-25-304, 17-25-305(b), 17-25-306, 17-25-307; 17 CAR §§ 255-201, 255-206, 255-208, 255-401 · Arkansas Contractors Licensing Board · Admin Rule · verified September 17, 2026
- Arkansas Contractors Licensing Board - Reciprocal Form and Reciprocal Form Instructions (Revised 3/2025) · Arkansas Contractors Licensing Board · Form · verified September 17, 2026
Verified dates are when a person last opened each source and confirmed the facts above. Cite the board, not us.