Do I have to take the Arkansas general contractor exam if I'm licensed in South Dakota?

The trade exam is waived, but Arkansas requires a law or code exam.

How long do I need to have held my South Dakota license?

At least 1 year before applying.

What does it cost to get a Arkansas general contractor license from South Dakota?

Published fees on this path total $184, not counting exam vendor fees or bonds.

Do my South Dakota work hours count in Arkansas?

Yes. Documented out-of-state experience counts toward Arkansas's eligibility requirements.

Does it work the other way, from Arkansas to South Dakota?

Not necessarily. Reciprocity is directed. Going from Arkansas to South Dakota, the mechanism is not applicable.

South Dakota to Arkansas: general contractor license reciprocity

No credit· Start overVerified September 17, 2026· 8 sources

South Dakota does not issue a statewide general contractor license, so there is nothing to transfer. Here is Arkansas's standard path for out-of-state applicants.

Your origin state does not issue a statewide license at this level, so there is no license to transfer. The destination's standard out-of-state path is shown; expect to meet it in full.

Reference only, not legal advice. Rules change; confirm with the licensing board before you apply. Full disclaimer.

Out-of-state commercial contractor without a reciprocal agreement, including the NASCLA route (all states except AL, LA, MS, NC and TN)

Your out-of-state credentials give no advantage. You meet the destination's requirements from scratch.

A commercial contractor licensed in a state that has no reciprocal agreement with Arkansas files the ordinary Commercial New Application and is reviewed by the Board case by case. The out-of-state license carries real weight: under 17 CAR § 255-208(b)(2) an applicant who holds a substantially equivalent license in good standing in another jurisdiction is not required to demonstrate experience, which removes the five-year showing for the Building classification, and 17 CAR § 255-201(d) allows a ninety-day temporary license on a completed application so work can start while the file is reviewed. An applicant without such a license can instead satisfy the experience rule by passing an examination, and the Board's examination for that purpose is the NASCLA Accredited Examination for Commercial General Building Contractors, an open-book examination of 115 questions over 330 minutes with a passing score of 81 that transfers between participating states. Neither route waives the Arkansas Business and Law examination, a fifty-question, two-hour open-book examination delivered by PSI that the qualifying party must pass before the license is released. The applicant also files a $10,000 contractor's surety bond, a CPA-prepared financial statement meeting the net worth minimum for the classification sought, Secretary of State filings and a workers' compensation certificate. Anyone who has established residence in Arkansas has a further route: Ark. Code Ann. § 17-7-104 obliges the Board to grant automatic occupational licensure to the holder in good standing for one year of a similar-scope license from another state, although the Board may still require the state-law examination and must still require the bond, financial statement and insurance.

Arkansas does not run a trade examination of its own for commercial contractors. Classifications are granted on experience, references or a passed examination under 17 CAR § 255-208(b)(1)(A), and the Arkansas Business and Law examination is the only examination the Board itself administers, which is why examTradeRequired is false and examLawRequired is true. The NASCLA Accredited Examination is therefore an alternative to proving experience rather than a substitute for the Business and Law examination: the Board's candidate bulletin for it states that candidates must follow the state agency's application 'in addition to taking a business and law examination'. The Board's NASCLA material is headed Commercial General Building Contractor, which is why the NASCLA route is authored at this level and not at the residential level. The Board does not publish the passing score for the Arkansas Business and Law examination, the number of attempts allowed, the temporary license fee, or a processing time; applications must reach the Board three weeks before a board meeting and must be completed within ninety days of receipt or the filing fee is forfeited. Uniformed service members, veterans and their spouses holding a similar out-of-state license are exempt from both the experience showing and the examination under 17 CAR § 255-206(c), and the commercial application adds that they need not file the three reference forms either. Specialties marked on the application as requiring an Arkansas trade license or certification, among them plumbing, electrical, HVACR, gas fitting, fire sprinklers, elevators, boilers, septic tanks, lead abatement and water wells, must also be cleared with the relevant Arkansas trade agency.

At a glance

Trade exam: Waived
Law / code exam: Required
Out-of-state hours: Count toward eligibility

What you must already have

Your South Dakota license must be active and in good standing.
You must have passed a licensing exam in South Dakota that the destination considers comparable.The NASCLA Accredited Examination is a single commercial general building trade examination that participating state boards accept in place of their own, and it is open to any candidate regardless of where they are licensed. Arkansas uses it in place of the applicant demonstrating appropriate experience on the application. It is 115 questions, 330 minutes, open book, with a minimum passing score of 81, and results are sent to boards through NASCLA's National Examination Database. It does not waive the Arkansas Business and Law examination, the financial statement, the bond, the insurance or the application.
You must have held your South Dakota license for at least 1 year.Applies only to the automatic occupational licensure route in Ark. Code Ann. § 17-7-104, which is open to an applicant who has established residence in Arkansas and has held a similar-scope license in good standing for one year. There is no minimum holding period on the ordinary application.
You must have no disciplinary action or unresolved complaints on your record.
You must document at least 10,000 hours of qualifying work experience.Five years of appropriate experience for the Heavy, Highway/Railroad/Airport, Municipal and Utility, Building, Light Building, Mechanical or Electrical classifications, or one year for a specialty. The rule states the requirement in years and allows a passed examination instead; the requirement is waived altogether for an applicant holding a substantially equivalent out-of-state license in good standing.

What you'll do to get licensed in Arkansas

1Law / code exam. Pass a law, rules, or code exam. Arkansas Business and Law examination, taken by the qualifying party and scheduled with PSI Services LLC: fifty multiple-choice questions, two hours, open book, tested only from the NASCLA Contractors Guide to Business, Law and Project Management, Arkansas Edition. The license can be approved but not released without the passing score. The Board does not publish the passing score..
2Trade exam. Pass the destination's trade exam (if applicable). Optional NASCLA Accredited Examination for Commercial General Building Contractors, used by the Board in place of the applicant demonstrating appropriate experience: 115 questions, 330 minutes, open book, minimum passing score 81, with a published reference list covering the International Building Code, ACI 318, OSHA 29 CFR Part 1926 and commercial construction management texts. Booked through NASCLA and delivered by PSI, with the result transferred to the Board through NASCLA's National Examination Database. An applicant who already holds a substantially equivalent out-of-state license does not need it..
3Application fee. Pay the application fee ($100). Non-refundable, non-transferable $100 filing fee for a Commercial New Application, payable to the Contractors Licensing Board by check or money order. A sole proprietor on certain public assistance, recently approved for unemployment, or with household income under 200% of the federal poverty guidelines may apply for an initial fee waiver under 17 CAR § 255-207..
4Exam fee. Pay the exam fee ($84). $84 paid to PSI Services LLC when the Arkansas Business and Law examination is scheduled. Examination fees are not refundable or transferable. The NASCLA Accredited Examination is booked and paid for separately through NASCLA; the Board does not publish that fee..
5Surety 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. The license can be approved but not released until the bond is on file, unless the same entity already holds a license or registration with the Board. The surety must be authorized to do business in Arkansas and the bond executed by an agent licensed by the Insurance Commissioner..
6Financial responsibility. Show financial responsibility of at least $50,000. CPA-prepared financial statement, not from an in-house CPA, dated less than one year before filing, with a balance sheet on a GAAP or accrual income tax basis. A Restricted Commercial applicant files a compiled report; an Unrestricted Commercial applicant files a reviewed report or audited opinion. Minimum business-related net worth is set by classification: $50,000 for Building, Heavy, Highway/Railroad/Airport and Municipal and Utility; $20,000 for Light Building, Mechanical and Electrical; $5,000 for a specialty. A new applicant must hold half the minimum in cash in the bank, not as receivables or a stockholder note, and must show positive working capital. The amount shown is the Building classification figure. The license expiry date is set by the date of the financial statement..
7Surety bond. Post a surety bond ($500,000) (if applicable). Optional surety bond in lieu of the financial statement under Ark. Code Ann. § 17-25-304(c), filed on the Board's form as an original: the amount is ten times the required net worth for the classification, so $500,000 for the Building classification. It must be continuous, list the State of Arkansas as obligee and stay in force while the license is held, and it may be cancelled once an acceptable financial statement is filed. It does not replace the $10,000 contractor's surety bond..
8Insurance. Carry the required insurance. Current certificate of workers' compensation insurance if the applicant has one or more employees, verified to the Board with the application..
9Business license. Obtain a business license. The license is issued to a legal entity, so a corporation, LLC, LP or LLP must file its Articles or filings from the Secretary of State's office with the application, together with any fictitious name registration. An out-of-state entity must therefore be registered to do business in Arkansas before the license issues, and the bond must be in that registered name and EIN..
10Other. Three reference forms completed by the referees themselves and no more than ninety days old, verifying the experience behind each classification or specialty requested. References from a supplier or banker are accepted only if that person has observed the work. This requirement falls away for an applicant holding a substantially equivalent out-of-state license in good standing under 17 CAR § 255-208(b)(2), and for uniformed service applicants..
11Other. Ninety-day temporary license: an applicant who holds a substantially equivalent license in good standing in another jurisdiction may file the temporary license application and fee alongside the new application and work while the full application is reviewed. An applicant from a jurisdiction that issues no substantially equivalent license may still get one by demonstrating experience or appropriate testing. The Board does not publish the temporary license fee. (if applicable).
12Other. Adding residential work: a commercial license automatically authorizes residential work in the same classifications. A commercial licensee who wants a residential classification the commercial license does not carry files the residential application as well, with references for that classification, but pays no additional fee and sits no additional test. (if applicable).

Published fees on this path total $184, excluding exam-vendor fees, bonds, and insurance.

What you'll need to buy or arrange

Exam preparation

Most boards contract PSI, Prov, or ICC for exams. Check which code edition the exam is written to before buying a prep course.

Law / code exam
Trade exam · if applicable
Exam fee · $84

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
Surety bond · $500,000 · if applicable

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

Verified September 17, 2026· 4 sources

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.

Moving to Arkansas Leaving Arkansas

Why South Dakota has nothing to transfer

South Dakota general contractor

Licensed by cities and counties

Verified September 17, 2026· 10 sources

South Dakota has no state general, commercial or building contractor license and no state board that examines or qualifies builders, so there is nothing at state level for an out-of-state general contractor's license to transfer into. The Department of Labor and Regulation's occupational licensing list has an Electrical Commission, a Plumbing Commission and a Board of Technical Professions for architects and engineers, and no contractor board, so the credentials that matter at state level are the electrical and plumbing licenses held by the subcontractors and the design professionals who stamp the drawings. Commercial building is governed locally, and most of the state's larger cities license less at this level than at the residential one: Sioux Falls states that it 'does not require Commercial Building Contractors to be licensed at this time', Aberdeen says commercial contractors are not required to be licensed through the city because commercial projects are designed and overseen by architects and engineers, and Brookings publishes a residential contractor license and no commercial equivalent. Rapid City is the exception, licensing a Class A general contractor for construction of all types of structures on the ICC National Standard General Building Contractor (A) examination. Every contractor, commercial included, must hold a free contractor's excise tax license from the Department of Revenue before starting work anywhere in the state, and the 2% contractor's excise tax falls on the prime contractor's gross receipts.

How local licensing works in South Dakota

How it works in South Dakota. No South Dakota agency issues a general, commercial, building or unlimited contractor license, and there is no state qualifying party, business-and-law examination or financial responsibility test. Commercial construction is controlled through the building permit and the plan review, and by the state's requirement that commercial projects be designed and overseen by licensed architects and engineers. The one thing the state does require of every commercial contractor is a contractor's excise tax license from the Department of Revenue: 'an individual must be licensed before starting work in South Dakota. All contractors must be licensed regardless of the amount of the receipts they have or the amount of tax due.' It is free, it is applied for online, and the 2% contractor's excise tax is imposed on the gross receipts of the prime contractor. Get it first; cities ask for the card.

Rapid City. This is the one city of the four that licenses commercial builders, and its Class A license is the most demanding contractor credential in South Dakota. Class A is the 'General Contractor' class, 'for construction of any and All types of structures', and it is issued on the ICC National Standard General Building Contractor (A) examination, known as the G11, taken through Pearson VUE: 4.5 hours, 90 multiple-choice questions, open book, based on the 2018 International Building Code and the 2018 International Residential Code, with an examination fee of $115.00 and testing at the Career Learning Center, 730 E Watertown St. The license itself is $200 initially and $100 to renew, runs three years and carries six hours of continuing education per period. Every applicant files a certificate of insurance naming the City of Rapid City as certificate holder, and no other form is accepted, with minimum general aggregate liability of $1,000,000, $300,000 fire damage and $1,000,000 each occurrence, plus a workers' compensation certificate or a signed statement of non-participation. A copy of the South Dakota excise tax certificate is part of the packet, and an electrical contractor class separately requires proof of a South Dakota electrical contractor's license. No verifiable experience is required for Class A, and the packet offers no waiver, credit or reciprocity for a contractor license held in another city or another state: a licensee who lets the license lapse beyond the one-year grace period must reapply and pass the examination again. Building Services is on (605) 394-4120.

Sioux Falls. The city's position is one sentence long: 'The City of Sioux Falls does not require Commercial Building Contractors to be licensed at this time.' What it requires instead is that each individual project goes through plan review and obtains the proper permits. Note that apartment buildings count as commercial for construction purposes even though they are residential in use, so a multifamily builder falls outside the residential license as well. The electrical, mechanical, plumbing, refrigeration, sign and right-of-way trades are separately licensed by the city, and right-of-way contractors must be bonded and insured before working in a city right-of-way. Plans examiners are on 605-367-8248 and building inspectors on 605-367-8251.

Aberdeen. 'Because the majority of commercial construction projects are required to be designed and overseen by design professionals (i.e. Professional Architects and Professional Engineers), Commercial Contractors are not required to be licensed through the City of Aberdeen. Commercial Contractors are required to obtain a South Dakota Excise Tax License.' Electricians are licensed by the state, with state permits and state inspections in Aberdeen; plumbers are licensed by the state but permitted and inspected by city inspectors. Building Inspection is at City Hall, 123 South Lincoln Street, 3rd Floor, 605-626-7017.

Brookings. Community Development issues a residential contractor license, a plumber license, building permits and rental licenses, and publishes no commercial or general building contractor license; all work must conform to the International Building Code and electrical and plumbing work must be done by trades licensed by the state and the city. Because the city publishes no commercial contractor application, confirm what is expected of a commercial builder with Community Development on (605) 692-6629 before bidding. Building permits also apply on nonagricultural land in the joint jurisdictional area about three miles beyond the city.

Everywhere else. Other South Dakota cities set their own permit and licensing rules, and the further from the larger cities you go the more likely it is that a permit and proof of insurance are all that is asked. Check with each building official, and hold the state excise tax license wherever you work.

Moving to South Dakota Leaving South Dakota

Common questions

Do I have to take the Arkansas general contractor exam if I'm licensed in South Dakota?: The trade exam is waived, but Arkansas requires a law or code exam.
How long do I need to have held my South Dakota license?: At least 1 year before applying.
What does it cost to get a Arkansas general contractor license from South Dakota?: Published fees on this path total $184, not counting exam vendor fees or bonds.
Do my South Dakota work hours count in Arkansas?: Yes. Documented out-of-state experience counts toward Arkansas's eligibility requirements.
Does it work the other way, from Arkansas to South Dakota?: Not necessarily. Reciprocity is directed. Going from Arkansas to South Dakota, the mechanism is not applicable.

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 - NASCLA-Accredited Examination, Commercial General Building Contractor (candidate bulletin, revised 6/30/2025) · PSI Services LLC for the Arkansas Contractors Licensing Board · Other · verified September 17, 2026
Out-of-State Licensure - Automatic Occupational Licensure, Ark. Code Ann. § 17-7-104 (Act 457 of 2023) · Ark. Code Ann. §§ 17-7-103, 17-7-104 (Act 457 (SB90) of 2023) · Arkansas Department of Labor and Licensing / Arkansas Contractors Licensing Board · Statute · 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
Arkansas Business & Law Test (Instructions) - Arkansas Contractors Licensing Board (Revised 1/2025) · Arkansas Contractors Licensing Board · Form · verified September 17, 2026
NASCLA Accredited Examination for Commercial General Building Contractors · National Association of State Contractors Licensing Agencies · Other · verified September 17, 2026

Verified dates are when a person last opened each source and confirmed the facts above. Cite the board, not us.

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