Moving to Tennessee as a general contractor: every state's rule

1. 1Trade exam. Pass the destination's trade exam. Tennessee BC-B Commercial Contractor examination (Prov), or the BC Combined examination for the full Building Construction classification: open book, 100 questions, 5 hours, 73% to pass. Scheduled directly with Prov without Board pre-approval..
2. 2Law / code exam. Pass a law, rules, or code exam. Tennessee Business and Law examination (Prov): open book, 50 questions, 2.5 hours, 73% to pass, drawn from the Contractors' Guide to Business, Law and Project Management, Tennessee Edition. Scheduled directly with Prov without Board pre-approval..
3. 3Exam fee. Pay the exam fee ($53). Prov examination fee, $53 for each examination and each retake, paid to Prov at registration; it is paid once for the trade examination and once for Business and Law..
4. 4Application fee. Pay the application fee ($250). Non-refundable application and initial license fee, paid with the Initial New Contractor Application at core.tn.gov. The license is issued for two years..
5. 5Financial responsibility. Show financial responsibility. Financial statement prepared by a licensed public accountant or CPA on the accountant's letterhead, in the name of the applicant entity, conforming to GAAP and dated no more than twelve months before the application. There is no fixed minimum dollar figure: the monetary limit on the license is set at ten times the lesser of working capital and net worth, supported by experience, so a $150,000 limit needs $15,000 of each and an unlimited license needs $300,000 of each. A reviewed opinion is required for a limit of $3,000,000 or less and an audited opinion above that. A line of credit or a Board Guaranty Agreement may be used to supplement working capital or net worth..
6. 6Surety bond. Post a surety bond (if applicable). Optional alternative to the CPA-reviewed or CPA-audited financial statement: from July 1, 2026 the Board accepts a Contractors' Surety Bond on the Board's own form in an amount of at least 50% of the monetary limit requested. A bond or Guaranty Agreement may also be required in addition to the financial statement where the statement is primarily cash without fixed assets or where a parent company guarantees the applicant..
7. 7Insurance. Carry the required insurance ($100,000). Certificate of general liability insurance in the same name as the license, listing the Board as certificate holder. The Board's minimum coverage is set by the monetary limit requested: $100,000 of coverage for a limit up to $500,000, $500,000 of coverage for a limit of $501,001 to $1,500,000, and $1,000,000 of coverage above $1,500,001 to unlimited. Workers' compensation insurance is also required unless the business has no employees and qualifies for an exemption or registers as a Construction Services Provider. The amount shown is the lowest coverage tier..
8. 8Business license. Obtain a business license. The license is issued to a legal entity in its exact name, so the corporation, LLC or limited partnership must be registered with the Tennessee Secretary of State before the license is issued; an entity formed in another state registers as a foreign entity and files its Certificate of Authority or Articles of Organization. A separate business tax license from the Tennessee Department of Revenue is needed for each city or county the contractor operates in..
9. 9Other. Letter of Reference on the Board's form from a past client, employer or code official who can speak to construction experience; it may be from outside Tennessee but may not come from a relative, and only one is needed. Also required: a Contractor's Affidavit signed and notarized by the Qualifying Agent, owners, partners, members, main officers and major stockholders, a statement of experience and management information, and a list of equipment. An interview at a Board meeting may be required, for example where the Qualifying Agent is not a majority owner and has been employed less than six months, where the experience shown is thin for the limit requested, or where there is complaint, judgment, bankruptcy or felony history..
10. 10Background check. Complete a background check (if applicable). The Board does not list a criminal background check for every applicant. Owners, officers and the Qualifying Agent disclose felony convictions, judgments, discipline and complaints on the notarized Contractor's Affidavit. Anyone disclosing a felony supplies the court records, proof of release from probation, a character reference and a Tennessee Bureau of Investigation criminal history report (plus a report from the state of conviction or prior residence if in Tennessee less than five years), and is usually interviewed by the Board..

Published fees on this path total $303, excluding exam-vendor fees, bonds, and insurance.