Michigan Contractor License: Residential Builder, Maintenance and Alteration, and the $600 Rule

If you are searching for a michigan contractor license, the first thing to know is that Michigan does not issue one general contractor license. The Bureau of Construction Codes (BCC) at LARA licenses two residential categories under Article 24 of the Occupational Code: Residential Builders and Maintenance and Alteration (M&A) contractors. Whether you need either one depends on the work you do and what the job costs. The $600 rule decides more small jobs than anything else in this area, so it gets its own section below.

This guide is informational content, not legal or tax advice. Before you bid a specific project or choose a business structure, talk to a Michigan attorney or CPA who works with contractors.

Michigan has no general business license

Michigan has no general statewide business license. LARA's Corporations Division does not license businesses. Its job is to receive, review and file the documents that form and maintain an entity. Registering an LLC or corporation through the MiBusiness Registry is a filing, not a license.

The state licenses by trade or activity instead. Depending on the work, that means LARA's Bureau of Professional Licensing, the Bureau of Construction Codes, MDARD, the Michigan Liquor Control Commission (MLCC), the Cannabis Regulatory Agency, LARA child care licensing, and others. On top of state licensing, counties and municipalities can require local permits, zoning approval, a certificate of occupancy, or health approvals.

For a contractor, the real questions are which trade license applies to your work and whether that work is above the exemption threshold.

What the Bureau of Construction Codes licenses

BCC handles two residential categories under Article 24 of the Occupational Code:

• Residential Builder. This is the license most people mean when they search for a michigan general contractor license. It covers residential building construction, so it is the closest Michigan comes to a general contractor license for homes.
• Maintenance and Alteration (M&A). This covers the trade-based work listed in the next section, which is typically repair, alteration and addition work on existing structures.

If your business is one trade, such as roofing or concrete, M&A is likely the relevant license. If you build or add to whole residential structures, the Residential Builder license is the relevant one. Work that falls between the two is common, so ask BCC which license fits before you bid the job.

The $600 rule: when you need no license

Under MCL 339.2403(f), no Residential Builder or M&A license is needed for a single project with an aggregate contract price under $600. The aggregate contract price includes everything you charge for the job: labor, materials and other items. If you supply the materials, their cost counts toward the total you test against $600.

Two details matter. The threshold is "under" $600, so a job priced at exactly $600 does not qualify. And the test is applied to the job, not to a single invoice. Here is how three common scenarios compare:

Example job	Labor	Materials and other items	Aggregate contract price	License needed?
Fence board repair	$250	$300	$550	No, under $600
Fence board replacement	$250	$400	$650	Yes, over $600
Gutter replacement at exactly $600	$300	$300	$600	Yes, not under $600

The exemption has limits that catch small operators off guard:

• Splitting one job into several smaller contracts to stay under $600 voids the exemption.
• Doing work that is part of a larger operation to stay under $600 also voids the exemption.

If you are doing a larger project in pieces, assume the exemption does not apply and confirm the question with BCC before you start. Also remember that the exemption covers only the state license requirement. Local permits, zoning rules and any city or county licensing still apply to a job under $600.

Which trades fall under M&A

M&A licensing covers these trades:

• Carpentry
• Concrete
• Roofing
• Siding
• Masonry
• Insulation
• Gutters
• Tile
• Excavation
• Swimming pools

If your work sits in one of these trades and the job is at or above $600, you need the M&A license for that work. Plumbing, electrical and mechanical contractors are not M&A. They hold separate licenses under the Skilled Trades Regulation Act (PA 407 of 2016), so an M&A license does not let you do that work.

What you need to get licensed

Michigan's requirements for these licenses center on education, a state exam, and a qualifying individual. The main pieces are:

1. 60 hours of prelicensure education. The course is six hours in each of seven subjects. Finish it before you sit for the exam.
2. The PSI exam. PSI administers the exam and collects its fee. The exam fee is not set in this guide, so check PSI for the current amount before you budget.
3. The license application to BCC. The application fee is $195.
4. A qualifying officer, if you operate as a company. A company works through a qualifying officer who personally holds the individual license. The person you name has to be the one who holds the license, not just an employee who passed the exam.
5. Bonding. This guide does not set a bond amount. Call BCC at 517-241-9316 to find out whether a bond applies to your license and how much it must be.

Fees at a glance

Item	Amount	Timing or notes
Application	$195	Paid with your license application
Renewal	$150	Every three years, due May 31
Late renewal	$170	Charged when renewal is late
Relicensure	$185	Confirm with BCC when this applies
PSI exam fee	Check PSI	Not set in this guide
Bond	Check BCC	Not set in this guide, call 517-241-9316

Fees can change, so confirm the current BCC fee schedule before you price a bid or budget for licensing.

Choosing the right license for your work

Pick the license that matches the work you actually do, not the one that sounds most impressive. A roofing or siding business that takes on occasional whole-house projects should look at both categories, because the job type changes which license applies. A business that only does residential remodeling across several trades should confirm whether M&A coverage, a Residential Builder license, or both are needed.

Keep a simple record for each job: the aggregate contract price, the trades involved, and whether the work was part of a larger project. That record is the evidence you will need if BCC or a customer asks whether the $600 exemption applied.

If you operate through an LLC

Choosing a business entity and getting a trade license are separate steps. An LLC is formed by filing Articles of Organization (Form CSCL/CD-700) with LARA. Michigan calls the registered agent a resident agent, and the resident agent and registered office must be included in the Articles. Each year after the year of formation, the LLC files an Annual Statement (Form CSCL/CD-2700) with a $25 fee, due February 15.

Those filings keep the entity in good standing. They do not license your trade. An LLC that does contractor work still needs the individual license described above, with a qualifying officer if the company operates through one. If you do business under a name other than your own, the filing depends on your structure: sole proprietors and general partnerships file an assumed name with the county clerk, while LLCs, corporations and limited partnerships file with LARA.

Local rules still apply

Michigan has 83 counties, about 275 to 280 cities, about 255 to 258 villages and 1,240 townships. Each can add permits, inspections or licensing on top of state requirements. Before you start a job, check with the local building department where the work is located.

Tax obligations also vary by place. City income tax exists in only 24 Michigan cities, so check whether the city where you work or live is one of them, and confirm your obligations with a CPA.

Next steps

1. Write down the aggregate contract price for each job, including materials you supply. Anything at or above $600 needs a license unless another rule applies.
2. Choose the category that matches your work: Residential Builder, M&A, or both.
3. Complete the 60 hours of prelicensure education, then schedule the PSI exam.
4. Call BCC at 517-241-9316 to confirm the application fee, bonding, and whether a specific job falls under the exemption.
5. Check local permit requirements with the city, township or county where you work.

Where to confirm the details

• LARA and the Bureau of Construction Codes: https://www.michigan.gov/lara (search for Bureau of Construction Codes)
• BCC phone: 517-241-9316
• MiBusiness Registry for entity searches and filings: https://mibusinessregistry.lara.state.mi.us/
• Michigan Department of Treasury for tax questions: https://www.michigan.gov/taxes
• Michigan Small Business Development Center for business planning help: https://michigansbdc.org/
• PSI for the current exam fee and scheduling

Licensing rules, fees and thresholds can change. Confirm every figure in this guide with the agency named before you bid a job, budget for a license, or rely on the exemption.

This guide is informational content, not legal or tax advice. For a specific project, a business structure decision, or a dispute over whether a license is required, consult a qualified Michigan attorney or CPA.