Tennessee Home Improvement License: Requirements, Application, and Renewal

To get a Tennessee home improvement license, you apply to the Tennessee Board for Licensing Contractors with proof of experience, a $10,000 surety bond, general liability insurance of at least $100,000, workers’ compensation coverage (unless exempt), and a $250 fee for a two-year license. The license is required only in nine counties, and only for residential remodeling, repair, or alteration work costing more than $3,000 but less than $25,000.¹²

Who Needs This License

The home improvement license applies only in counties that have adopted the state’s home improvement law. Those counties are Bradley, Davidson, Hamilton, Haywood, Knox, Marion, Robertson, Rutherford, and Shelby.¹

The dollar range matters. The license covers residential projects where labor and materials together total more than $3,000 and less than $25,000. At $25,000 or above, you need a General Contractor license instead.¹

One boundary to be clear about: this license does not authorize plumbing, electrical, or HVAC work. Those trades require their own state or local credentials regardless of project size, so check with local government offices before starting.¹

What You Need Before You Apply

You’ll need to show the Board a record of your prior experience in home improvements or construction. The Board can also request financial statements and information about your character to confirm you can operate responsibly.³

Three financial safeguards are required:

A $10,000 surety bond, or an irrevocable letter of credit, filed with the Board to cover damages if you breach a contract.
General liability insurance with a minimum of $100,000 in coverage.
Workers’ compensation insurance, unless you qualify for a specific statutory exemption.

The name on your license must exactly match the name on your surety bond.²³

You must also disclose any history of unlicensed activity, prior license revocations, outstanding court judgments, and felony convictions. A felony doesn’t automatically disqualify you, but it triggers a review by the full Board. Failing to disclose these items can lead to denial.²

How to Apply and What It Costs

You apply through the Tennessee Department of Commerce and Insurance, either online or by mail, using the official Home Improvement Contractor license application.⁴

If your business is a corporation, LLC, or partnership, you must show it’s registered and in good standing with the Tennessee Secretary of State. You also need to submit a copy of the written contract you plan to use with customers; state law requires that contract to be in writing and to include your license number, a description of the work, and estimated start and completion dates.²

The fee is $250 for a two-year license. Checks should be made payable to Home Improvement.²

Is There an Exam?

No. The home improvement license does not require a written examination. The Board evaluates you based on your application, financial documentation, experience record, and background disclosures.²

Renewal and Keeping Your Information Current

The license runs two years. To renew, submit a renewal application, pay the fee, and provide updated proof of general liability and workers’ compensation insurance. If your surety bond is canceled or otherwise stops being in effect, your license becomes invalid immediately.⁵³

You have 30 days to notify the Board of any major business change, including a new address, a new trade name, or a change in ownership control. Letting this slip can complicate renewal or invite disciplinary action.³

Penalties for Working Without the License

The Board can refuse, suspend, or revoke a license for fraud, misrepresentation, or incompetent work. Working without a license in a county that requires one carries a civil penalty of up to $1,000 per violation. And if you accept payment for a project and neither complete the work within 90 days nor issue a refund, you can face criminal prosecution for theft under state law.⁶²

1
Tennessee Department of Commerce and Insurance. Home Improvement Licensing Requirements
2
Tennessee Department of Commerce and Insurance. Application Requirements & Process
3
Justia. T.C.A. § 62-6-506
4
Tennessee Department of Commerce and Insurance. How to Apply – Home Improvement
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Justia. T.C.A. § 62-6-507
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Justia. T.C.A. § 62-6-509