Thinking about bidding or managing construction work in North Carolina? If the project’s total cost is $40,000 or more, state law says you (or your company) must hold a North Carolina general contractor license. 

Earning your North Carolina general contractor license is a multi-step process that might seem intimidating at first. But going into it with a baseline understanding can help make the entire process more seamless. 

From picking the right classification to passing the exam and keeping your license current, here’s a step-by-step look at becoming a licensed contractor in NC. 

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Quick Facts: Getting Your North Carolina Contractors License

• Who licenses contractors? North Carolina Licensing Board for General Contractors (NCLBGC)
• When is a license required? For construction contracts $40,000 or more. See the Laws & Regulations book.
• Apply online: via the Board’s application portal on their website.
• Trade exam option: North Carolina accepts the NASCLA Accredited Building Exam for the Building classification.
• Financial limits: You must choose either a Limited, Intermediate, or Unlimited license limitation and meet the associated financial criteria or post a bond.
• Continuing education: For many license types, you’re required to complete 8 hours per year (including a 2-hour mandatory course).

1. Pick Your License Classification

NC issues licenses by type of work. Choose the one that matches your business model. From the Licensing Board’s Classifications and Limitations page:

• Building – commercial, industrial, institutional, and all residential building construction (plus listed site & accessory work).
• Residential – projects under the residential building code (plus ancillary site/wastewater work).
• Highway – roads, bridges, airport paving, etc.
• Public Utilities – water/sewer, power distribution ahead of delivery point, communications, fuel lines, etc.
• Specialty – defined trades per Rule .0202 (e.g., Grading/Excavating, Boring/Tunneling, Concrete Construction, Water/Sewer Lines)

2. Choose Your NC Contractor License Limitation (Project Size)

Your limitation determines how large a single project you can legally contract for. This information comes from the same Classifications and Limitations page cited above:

• Limited: up to $750,000 per project (excluding land/improvements). Requires current assets minus liabilities ≥ $17,000 or net worth ≥ $80,000 or a $175,000 surety bond.
• Intermediate: up to $1,500,000 per project. Requires assets-minus-liabilities ≥ $75,000 or a $500,000 bond.
• Unlimited: no limit on project size. Requires assets-minus-liabilities ≥ $150,000 or a $1,000,000 surety bond.

3) Identify Your Qualifier And Pass The Exam

Each applicant must designate a qualifying individual who passes an exam approved by the Board. In order to get prequalified to take the exam, you must complete a new license application. 

According to the NCLGBC, a qualifier is defined as “a responsible managing employee, owner, officer, or member of an LLC or partnership who successfully completes the examination required for licensing… Qualifiers are not licensees but are the holders of a qualifying credential that is required for licensure.”

The exam covers subjects like business & law, code knowledge, plan reading, ethics, state statutes/rules (including sedimentation control), and estimating. You’ll find more details on the FAQ for Contractors page.

It’s worth noting that for the Building classification, NC accepts the NASCLA Accredited Building Contractor Exam.

4) Meet Basic Eligibility & Background Checks

You must be at least 18 years old, of “good moral character” (as determined by the Board), meet the financial responsibility requirement, pay fees, and consent to any background check.

5) Apply Online

New applicants submit applications via the Board’s online portal. Choose the correct entity type (individual/partnership/LLC/corporation), classification, and limitation, and upload required documents.

Classification vs. Limitation: What’s the Difference?

Throughout the process of obtaining your general contractor license in North Carolina (and anywhere, really), you may come across some unfamiliar terminology. In this case, classification and limitation are two of the main examples:

• Classification refers to the type of construction work you’re licensed for (e.g., Building vs. Highway).
• Limitation refers to the size of jobs (Limited/Intermediate/Unlimited) you’re allowed to contract.

Exam Essentials

• Provider: The exam is administered by PSI 
• What’s covered: Business & Law, building codes, plan reading, estimating, ethics, NC statutes/rules.
• NASCLA option: If you take and pass the NASCLA Building exam, NC will accept it for the Building classification (you still apply via NC’s process).

PSI offers a number of different test-taking resources to help you prepare for your NC general contractor licensure exam with confidence.

Financial Requirements & Surety Bonds

To qualify for a limitation level, you must either submit documented working capital/net worth or post a surety bond of the required amount. Bond must be from an insurer authorized in NC, continuous, list the “State of North Carolina” as obligee, and be maintained as long as license remains active or until you meet the financial threshold.

Continuing Education (CE) & Renewal

For Building, Residential and Unclassified classifications, the Board requires at least one qualifier to complete 8 hours of continuing education annually, including a 2-hour mandatory course that the Board produces. The CE year runs January 1 through November 30 each year.

Reciprocity & Endorsement

Under NC law, the Board may in its discretion grant a license to out-of-state contractors without an exam, when the other state’s standards are “substantially similar” and you furnish proof of equivalent qualifications and pay fees.

FAQs: North Carolina Contractor License

Do I need a license for small jobs?

If your total project is under $40,000, then a general contractor license is not required under the general-contractor statute.

What if my company is the license holder and my qualifier leaves?
You must replace the qualifier within 90 days or your license becomes invalid.

Where can I verify a contractor’s license?
You can use the License Search on the Board’s website.

Is CE required for every classification?
No, you only need CE for Building, Residential, and Unclassified license classifications.

Can I use CE I took in another state?

Only if the provider is also approved by the NCLBGC. You will need to submit content for review. See FAQs for Continuing Education for more.

Action Checklist

1. Decide your classification (Building/Residential/Highway/Public Utilities/Specialty).
2. Choose your limitation (Limited/Intermediate/Unlimited) and decide whether you’ll document financials or post a bond.
3. Designate your qualifier and schedule the exam (or arrange NASCLA for Building).
4. Gather financials, bond documentation, background check, fill application.
5. Apply online via NCLBGC’s portal.
6. After licensure, complete your annual continuing education (8 hours/year) to renew.

Official Sources & References

• Laws & Regulations Book 2025
• NCLBGC’s Classifications and Limitations 
• NCLBGC’s License Applicants
• NCLBGC’s FAQ for Contractors
• NCLBGC’s Continuing Education page