Moving to Illinois as a residential contractor: every state's rule

How it works in Illinois. There is no state license, no state application and no state exam for residential contractors. Each municipality decides who may pull a residential building permit, so a contractor must be licensed or registered separately in every jurisdiction where they build, and a credential from one Illinois city is not valid in the next. Almost all of these local programs are about identity, insurance, bonding and fees rather than trade competence, and none of them reviews or credits a residential contractor license held in another state. Roofing is the exception in the other direction: the State license is mandatory everywhere in Illinois, and cities from Rockford to Joliet to Cook County check it at the permit counter.

Chicago. This is the license that matters. 'A City of Chicago general contractor license is required to perform most types of building construction, alteration, repair, and demolition work within the City of Chicago', and it is needed to bid on, undertake, hire or supervise, or control the means and methods of work requiring a building, sign or demolition permit. Licenses are issued to businesses, including sole proprietorships, in five classes set by project value - the fair market value of materials and labor supplied by all contractors and subcontractors across all concurrent and consecutive work at the same site. The two classes a homebuilder or remodeler usually needs are Class D, capped at $4 million with ordinary demolition and $2 million per occurrence of insurance, at a $900.00 license and renewal fee, and Class E, capped at $500,000 with no demolition and $1 million per occurrence, at $300.00. There is no exam, no experience review and no qualifying party. The application asks for a statement of financial solvency in the format supplied, proof of authority to do business in Illinois (not required for sole proprietors), an Assumed Name Certificate from the County Clerk if a trade name is used, proof of insurance for the class from an insurer authorized in Illinois and rated B+ or better by A.M. Best, and government photo identification for the controlling persons. Continental Testing Services processes the application and renewal by mail for the Department of Buildings; the license runs one year and 'is automatically inactivated if the associated insurance policy expires.' Reinstatement costs $100.00 per year or part year expired.

Chicago, work that does not need a permit. A business that fixes, replaces, alters, modernizes, improves or adds to residential property but does not need a building permit takes a Home Repair license from Business Affairs and Consumer Protection instead: $1,000.00 for a two-year term, with a certificate of insurance of at least $300,000 per occurrence, and the rule that 'Home Repair licensees may not pull building permits.' A general contractor license replaces it - 'a home repair license is not required for a business that holds a General Contractor license', though a general contractor doing residential work must still follow the home repair consumer protection rules, which include a written estimate before work, a written invoice on completion, prior approval before exceeding the estimate, and the license number on contracts, advertisements and vehicles. Acquiring vacant land to build a new home, or renovating more than half of an existing building's floor area, requires a separate Residential Real Estate Developer license.

Cook County (unincorporated areas). 'All contractors performing work in unincorporated Cook County are required to register with the Cook County Department of Building and Zoning.' Registration costs $150 per trade initially and $75 per trade annually, due by December 31, and needs a $1,000,000 general liability certificate naming Cook County Building and Zoning at 69 W. Washington, Suite 2830, Chicago as certificate holder, filed by the owner or a corporate officer with the Articles of Incorporation or the current Annual Domestic Report. Roofing registrants must submit the State of Illinois roofing license and demolition registrants an approved bond. There is no exam. Homeowners who live on the property get 'General' contractor registration free of charge. Use the county's CookViewer tool first to check whether a site is actually unincorporated. Contact [email protected] or 312-603-0512.

Aurora. The Division of Building and Permits registers a General contractor for a $200 fee. The packet is the Contractor Licensing Application, a certificate of insurance naming the City of Aurora as primary and non-contributory additional insured with $1,000,000 general aggregate and $500,000 per occurrence, workers' compensation in compliance with Illinois statute, and proof the business is registered with the Secretary of State or a county DBA certificate. There is no test for the General category - Aurora's municipal testing applies only to electrical and mechanical contractors, who may use ICC certifications or a license from an accepted testing municipality instead. Roofing registration is also $200 and requires the state license, and workers' compensation cannot be replaced by an employee affidavit for roofers. Outstanding or expired permits will block a renewal. Submit to [email protected]; 77 S Broadway, (630) 256-3130.

Evanston. 'All contractors performing work within City limits are required to register with the City, including but not limited to General Contractors, Electrical, Carpentry, Concrete, Excavation, Masonry, Landscaping, Fence, Roofing and Sign contractors.' General Contractor registration is $150 and trade registration $125, both renewable annually through the Citizen Portal. Insurance must be general liability of at least $300,000 per occurrence, bodily injury of at least $100,000 per occurrence, property damage of at least $100,000 per occurrence and workers' compensation at statutory minimums, with Evanston as certificate holder; sole proprietors and partnerships with no employees may file an affidavit in place of workers' compensation, and right-of-way work needs $1,000,000 per occurrence naming the city as additional insured. State-regulated contractors submit a copy of the state license. An owner-occupant of a single-unit residence may act as their own general contractor.

Joliet. 'All contractors performing work within the City of Joliet must have current registration on file prior to permit issuance. There are no forms or fees for registration, unless you are a Sign Erector or for HVAC Testing.' Registration is a certificate of insurance naming the City of Joliet as certificate holder, with minimum limits of $250,000 bodily injury per person, $500,000 bodily injury per occurrence and $250,000 property damage per occurrence, emailed to [email protected]. Roofing needs the Illinois State Roofer's License, plumbing the Illinois Plumbing Contractor Registration, irrigation the state irrigation license, siding a Vinyl Siding Installers certificate, and electrical and HVAC a license from one of the municipalities Joliet accepts. Electrical, plumbing and HVAC contractors also file a project-specific Letter of Intent, and all subcontractors must be listed on the permit application.

Rockford. 'General contractors are not required to be licensed.' Rockford requires a building permit for any structure over 120 square feet that is constructed, altered, enlarged, repaired or moved, and for all roofing work, and notes that 'roofing contractors are required to obtain a license from the State of Illinois Department of Professional Regulation.' Tent erectors and outdoor sign contractors need annual city licenses.

Springfield. The Building and Zoning Department's published list of applications contains electrical and mechanical contractor registrations and licenses and nothing else for contractors - there is no general contractor or home improvement registration. The city's building permit application collects the general contractor's name and address but asks for a license number only on the roofing line. Building and Zoning is at 300 South 7th Street, Room 304, (217) 789-2171.

Peoria. Peoria's Contractor Business Licenses cover only four activities - parking lot paving, sidewalk and driveway work, placing a dumpster or storage unit in the right-of-way, and sewer connections - at $25.00 or $60.00 a year with license and permit bonds of $5,000 or $10,000. Its trade licenses cover electrical and HVAC contractors at $150.00 each, issued to individuals rather than businesses and requiring an open-book ICC exam unless the applicant holds a Normal or Pekin license, plus boiler tender and stationary engineer licenses. There is no general building contractor or residential builder license in Peoria.

Everywhere else. Other Illinois municipalities set their own rules and most of them register rather than license residential builders. Ask the building or development services department of each city, village or county before contracting there, and confirm the current fee and insurance limits before buying coverage, because these are set locally and change independently.