How to Start an Electrical Business in Michigan: Contractor, Master and Journeyman Licenses

Michigan does not issue a general business license. If you want to run an electrical business here, your path runs through trade licensing. The state licenses the electrician and the electrical contractor, and LARA files the company paperwork that sits underneath. The result is a sequence of credentials you earn over several years, not a single application. If you are looking up a Michigan electrical license or an electrician license in Michigan, this is the order most people follow.

This guide covers the four electrical credentials Michigan issues, the experience and exam rules behind each one, the business filings you need, and the renewal dates to put on your calendar. This is informational content, not legal or tax advice.

What Michigan Actually Licenses

Electrical work in Michigan is licensed under the Skilled Trades Regulation Act (2016 PA 407) and administered by LARA's Bureau of Construction Codes. There are four credentials to understand:

• Apprentice registration. This is the starting point for people logging hours toward a journeyman license. Registration is not a journeyman license. Ask LARA what supervision it requires and what fee applies, because this guide does not state either figure.
• Journeyman electrician. Requires age 20, 8,000 hours over 4 years as an apprentice, and a passing exam score of 75 percent.
• Master electrician. Requires age 22, 12,000 hours over at least 6 years, and the exam.
• Electrical contractor. The license for a business that performs electrical work. It requires a licensed master electrician, either your own or one you hire. No exam is required for the contractor license. A master electrician can serve only one contractor.

Detroit is the exception to the state process. The City of Detroit issues its own electrical licenses, so if your work is in Detroit, check with the city before you apply with the state. Electrical permits are local everywhere in Michigan, so a state license does not replace the local permit office in any city, village or township where you work.

Keep one distinction clear. Registering a company with LARA's Corporations Division is a filing, not a license. The Corporations Division does not license businesses. An LLC on file with the MiBusiness Registry does not make you an electrical contractor.

Materials and Records to Gather Before You Start

Most applicants slow down because their paperwork is incomplete, not because the requirements are impossible. Gather these items before you start any application:

• A government-issued photo ID and proof of date of birth. Confirm with LARA when the age requirement is measured for the journeyman (20) and master (22) licenses.
• A complete hour log for every year of apprentice work. Include dates, employer, type of work, hours, and the name and license number of the supervising electrician.
• Current contact information for each supervising master or employer who can verify your hours.
• Exam registration details and study materials. Confirm the current exam provider and code references with LARA, because both can change.
• If you plan to form an LLC: a company name that includes Limited Liability Company, L.L.C. or L.C.; a resident agent; a Michigan physical address for the registered office; and the $50 filing fee for Articles of Organization (Form CSCL/CD-700).
• A federal Employer Identification Number from the IRS.
• A business bank account and insurance quotes. This guide does not list a state insurance minimum, so confirm requirements with your insurer and with the local building departments where you plan to work.

Step-by-Step: From Apprentice to Electrical Contractor

1. Decide which license you need first. Your goal sets the sequence. If you want to work for an employer as a skilled electrician, the journeyman license is your target. If you want to be the licensed master on a job or lead a crew, you need the master license. If you want to own a company that sells electrical work to customers, you need the contractor license, and that requires a licensed master. Most owners who start their own company follow the full sequence: apprentice, journeyman, master, then contractor. Some owners hire a licensed master instead of becoming one. That can work, but a master can serve only one contractor, so the master you hire cannot be the licensed master for a second company. Confirm how that rule applies to your setup with LARA before you hire.
2. Register as an apprentice and log every hour. Apprentice registration is where the clock starts for most people. The journeyman path requires 8,000 hours over 4 years, and the master path requires 12,000 hours over at least 6 years. Hours are the requirement applicants most often underestimate, because they only count if they can be verified. Keep a running log with the date, employer, job type, hours worked and the name of the supervisor. Have the supervisor sign off monthly, not at the end of four years. Ask LARA whether hours logged before registration count and how verification must be submitted.
3. Qualify and pass the journeyman exam. Once you are 20 and have 8,000 hours over 4 years, you can apply for the journeyman exam. The passing score is 75 percent. Build your study plan around the code edition and reference materials that LARA or the exam provider specifies, not around a textbook you found online, because the edition matters. Schedule the exam after your hour log is complete and checked. Passing the exam does not replace the experience requirement.
4. Earn the master electrician license. The master license requires age 22, 12,000 hours over at least 6 years, and the exam. Because the hour count is larger, many applicants keep working as journeymen while they build hours. Ask LARA whether journeyman hours count toward the master requirement and how the 6 year minimum is measured, since those rules decide when you can file. Keep your journeyman license current while you work toward master. The journeyman renewal is $40 a year.

5. Set up the business entity. Choose a structure: sole proprietor, LLC or corporation. Many electrical owners choose an LLC. To form one, file Articles of Organization (Form CSCL/CD-700) through the MiBusiness Registry Portal. The filing fee is $50. Michigan calls the registered agent a resident agent, and it must be named in the Articles. The resident agent must be a Michigan resident, a Michigan corporation, a foreign corporation with authority to transact business in Michigan, a Michigan LLC, or a foreign LLC authorized in Michigan. The registered office is a physical location and may match your place of business. A P.O. box alone is not sufficient.

Search the name on the MiBusiness Registry business search before you file. You can hold a name with Form CSCL/CD-540 for $25, which lasts six months following the month of filing. LARA does not publish a guaranteed standard review time for routine filings. Expedited review is available: 24 hours for $50 extra, same day for $100, two hours for $500 (received by 3 p.m.), or one hour for $1,000 (received by 4 p.m.). If you operate under a trade name, an LLC files a Certificate of Assumed Name (Form CSCL/CD-541) with LARA for $25. Sole proprietors file an assumed name with the county clerk instead, so confirm that fee with the clerk.

6. Apply for the electrical contractor license. With a licensed master on your team, apply for the electrical contractor license through LARA. The contractor license does not require an exam, which surprises many applicants. This guide does not list the contractor application fee, so confirm it with LARA. Make sure your master's license is active and that the master is not listed on another contractor. Ask LARA which entity the contractor license is issued to and what company documents it requires. The contractor license also affects other trades. A licensed electrical contractor is exempt from the builder license for electrical work only (MCL 339.2403(g)). If your company also does work that needs a builder license, confirm with LARA before you assume the exemption covers it.

7. Register your taxes and local obligations. Michigan imposes no franchise tax. What you pay depends on how the business is taxed. A standard LLC is a pass-through entity, so members report the income on the Michigan individual income tax at the flat 4.25 percent rate for the 2026 tax year. An LLC that elects federal C corporation treatment is subject to the 6 percent Michigan Corporate Income Tax. Retailers register with the Department of Treasury for a sales tax license, which is free and can arrive in as little as 7 business days. Whether an electrical contractor must register depends on what it sells, so confirm with Treasury at michigan.gov/taxes. City income tax applies in only 24 Michigan cities, so check whether yours is one. Finally, electrical permits are local. Contact the building department in every city, village and township where you plan to work before you bid.
8. Calendar every renewal. LARA lists these 2026 renewals for individuals: contractor $300 every 3 years ($50 late fee), master $50 a year, and journeyman $40 a year, all due December 31. Confirm the contractor renewal date with LARA, because the December 31 date is listed for individuals. For the company, an LLC files its Annual Statement (Form CSCL/CD-2700) for $25, due February 15 each year beginning the year after formation. An LLC formed after September 30 does not owe the statement on the February 15 immediately following. If LARA classes your LLC as a professional LLC, the fee is $75 and a $50 late fee applies after February 15. A corporation files its Annual Report (Form CSCL/CD-2500) for $25, due May 15.

Expected Results

Once the paperwork is complete, you may be able to bid, contract and pull permits for electrical work within the scope of your licenses, subject to local rules. Many owners find that a contractor license makes it easier to work with general contractors and homebuilders, which may lead to repeat referrals. Results depend on your local market, your work quality and your pricing. The license is a requirement to operate, not a guarantee of income.

Expect the full path to take years. The hour requirements alone run 4 years for journeyman and at least 6 years for master. LARA does not publish a guaranteed review time for routine filings, so build a buffer into any launch date.

Common Mistakes to Avoid

• Treating the LLC filing as the license. An accepted Articles of Organization does not authorize electrical work.
• Estimating hours from memory. Unverified hours are hard to prove later. Log them as you work.
• Assuming the contractor license requires an exam. It does not. The exam requirements apply to the journeyman and master licenses.
• Forgetting Detroit. The city issues its own electrical licenses, so a state license may not be enough inside city limits.
• Stretching one master too far. A master can serve only one contractor. Check the rule before you hire or share a master.
• Missing renewal dates. The contractor renewal carries a $50 late fee, and a lapsed license can stop your bids.
• Using a P.O. box as the registered office. Michigan requires a physical location for the resident agent and registered office.
• Pulling permits without checking locally. Electrical permits are local, so a state license alone does not clear a job.

Tips From the Filing Desk

• Start the hour log on day one, and have each supervisor sign it every month.
• Before you file anything, call LARA with a written list: which entity holds the contractor license, how hours before registration are treated, the contractor fee, and the current exam provider.
• Run the name search on the MiBusiness Registry before you choose a company name, and hold the name if you need time.
• Pay for expedited review only if a launch date depends on it. The extra cost runs from $50 to $1,000.
• Ask your insurer which coverage a Michigan electrical contractor needs before you sign a commercial contract.

When to Talk to a Professional

This guide is informational content, not legal or tax advice. Licensing rules and fees can change, and some figures above are marked for confirmation with LARA, the Department of Treasury or your local building department. If you plan to take on partners, employees, a master who works for more than one company, or commercial work, talk with a Michigan business attorney and a CPA before you file. For the company paperwork, the LARA Corporations Division page lists the current forms and fees.