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Michigan - 2026 Contractor License Requirements
Official Michigan contractor license lookup information, agency details, and homeowner notes for verifying a contractor before hiring.
About Michigan contractor licensing
Michigan uses statewide licensing through LARA for residential building and remodeling, which makes homeowner verification relatively straightforward. The state draws an important line between the Residential Builder license used for building or selling homes and the Maintenance and Alteration Contractor license used for remodeling and specific trades within residential work.
How licensing works in Michigan
Michigan's statewide system is project-driven and category-specific. A Residential Builder license typically covers building a home or doing broad residential construction, while the Maintenance and Alteration Contractor credential is used for remodeling and listed residential trades or scopes. Homeowners should make sure the license category matches the actual job, especially on large remodels that blur the line between alteration and building. Michigan's low threshold also means many paid residential jobs require state licensure.
Project thresholds
Michigan generally requires residential builder or maintenance-and-alteration licensure for residential jobs of $600 or more in labor and materials.
What to verify in Michigan
Use Michigan's state license search and look up the contractor by name or license number. Confirm the record is active and check whether the credential is Residential Builder or Maintenance and Alteration Contractor. If it is M&A, review the listed classifications to make sure they cover the scope being proposed. Also compare the exact entity name on the license record to the contract, because Michigan homeowners often deal with companies using consumer-facing brand names that differ from the licensed entity.
State-specific tips
- › For remodeling, ask whether the contractor is licensed as a Residential Builder or only in specific M&A classifications.
- › If the quote is above $600, do not accept a claim that the job is too small to require licensing.
- › On investor-owned or rental properties, make sure the license category still fits the residential work being contracted.
- › Review M&A classifications closely on window, siding, roofing, and deck projects instead of assuming broad authority.
- › If the business markets under a catchy brand name, confirm the exact licensed entity before paying a deposit.
Free template
Michigan Contractor Agreement Template
Download a free homeowner-contractor agreement template built for Michigan law.
Frequently Asked Questions
- What work requires a licensed contractor in Michigan?
- Under Michigan Public Act 299 of 1980 (Occupational Code), a Residential Builder license is required for new residential construction or alteration work valued at $600 or more on one- to four-family dwellings. A Maintenance and Alteration (M&A) Contractor license is required for repair and remodeling on existing residential structures over $600. Both are administered by the Michigan Department of Licensing and Regulatory Affairs (LARA). Commercial construction uses separate Bureau of Construction Codes requirements.
- What is the difference between bonded, licensed, and insured in Michigan?
- Licensed means the contractor holds a valid LARA Residential Builder or M&A Contractor license under PA 299 of 1980. Bonded means a $10,000 residential builder bond is in place to protect homeowners from contractor default. Insured means the contractor carries general liability and, for employers, workers' compensation. Michigan requires all three for residential contractors — verify each independently before signing.
- Is there a dollar threshold below which I do not need a licensed contractor in Michigan?
- Yes. Michigan's $600 threshold applies to work on one- to four-family residential dwellings. Projects below $600 are technically exempt from the Residential Builder and M&A Contractor license requirements. However, specialty trades — electrical under PA 217 of 1956, plumbing, and mechanical — have their own licensing requirements that apply regardless of project value.
- Can I do my own home improvement work without a licensed contractor in Michigan?
- Yes. Michigan allows owner-builders to perform construction on their own primary residence without a Residential Builder license under PA 299 §2405, provided the work is for personal occupancy. This does not exempt specialty trade work — electrical, plumbing, and HVAC work on owner-occupied homes may still require licensed tradespeople and permits under Michigan building codes.
- What license does a general contractor need in Michigan?
- Michigan issues two main residential classifications: Residential Builder (new construction, additions, alterations on one- to four-family dwellings) and Maintenance and Alteration (M&A) Contractor (repairs, remodeling, maintenance on existing residential structures). Both are issued by LARA under PA 299. The license class must match your specific project type — commercial construction uses a separate Bureau of Construction Codes process.
- How do I verify a contractor's license in Michigan?
- Use the Michigan State License Search at michigan.gov/statelicensesearch. Search by contractor name or license number, confirm the license is Active and not expired or suspended, and verify the classification (Residential Builder vs. M&A Contractor) matches your project. Check for disciplinary actions through LARA's portal. Michigan Residential Builder licenses expire every three years.
- What does an active vs. inactive license mean in Michigan?
- An Active license means the contractor is currently authorized to perform work under their classification with all renewal requirements met. A Lapsed or Inactive status means the license has expired. Under PA 299, working with a lapsed license can result in civil fines and may render the contract unenforceable for the unlicensed period. Never hire a contractor with a lapsed Michigan Residential Builder or M&A Contractor license.
- What insurance and bond does a licensed contractor need in Michigan?
- Michigan Residential Builders must carry a $10,000 surety bond and general liability insurance of at least $100,000 per occurrence under PA 299. Workers' compensation is mandatory under the Michigan Workers' Disability Compensation Act (PA 317 of 1969) for any contractor with employees. Request a current certificate of insurance naming you as an additional insured and verify coverage with the issuing insurer.
- What happens if a contractor works without a license in Michigan?
- Under PA 299 §2410, contracting for residential work without a required license is a misdemeanor. An unlicensed contractor cannot sue for compensation — the contract is unenforceable against the homeowner in Michigan courts. LARA can issue civil fines and cease-and-desist orders. Always verify license status at michigan.gov/statelicensesearch before signing any contract.
- My contractor's license expired mid-project — what now?
- Verify the expiration immediately at michigan.gov/statelicensesearch and send written notice to the contractor that work must stop until the license is renewed. Under PA 299, work performed with an expired license carries the same legal exposure as unlicensed work. File a complaint with LARA's Bureau of Professional Licensing if the contractor refuses to renew or abandons the project.
- Am I liable if an unlicensed worker gets hurt on my property in Michigan?
- Potentially yes. Under Michigan's Workers' Disability Compensation Act (PA 317 of 1969), an injured worker employed by an uninsured contractor may have a claim against you as the property owner. Michigan courts have found homeowners liable as statutory employers when a contractor lacked workers' comp coverage. Always require a certificate of workers' compensation insurance before any work begins.
- How do I file a complaint against a contractor in Michigan?
- File a complaint with LARA's Bureau of Professional Licensing at michigan.gov/lara. LARA investigates violations of PA 299 and can impose fines, suspend, or revoke licenses. For consumer fraud, contact the Michigan Attorney General's Consumer Protection Division at michigan.gov/ag. Small claims court handles disputes up to $7,000.