§ 01
How it works
The Minnesota licensing system in plain English
Minnesota's residential system is more structured than many neighboring states. For homeowners, the key issue is whether the company performing or contracting for residential work holds the proper DLI credential for that role. Some businesses may be licensed as residential building contractors or remodelers, while others appear in related registration categories. Because the distinctions can be technical, homeowners should focus on whether the official record supports the exact scope of residential work being sold to them.
§ 03
What to verify
Before you sign anything
Use the Minnesota DLI lookup and search by business name, individual, or license number. Confirm the credential is active and read the credential type carefully so you know whether you are looking at a residential contractor license or another registration category. Compare the legal name and address to the contract and verify any separate trade licenses when the scope includes electrical, plumbing, or HVAC. If the business cannot explain its DLI status in plain language, slow down.
§ 04
Homeowner tips
Practical guidance for Minnesota
- 01 In Minnesota, the wording of the credential matters, so ask the contractor to name the exact DLI category they hold.
- 02 For basement finishing and additions, verify both the residential contractor status and any trade licenses in the same planning step.
- 03 Match the licensed entity to the company taking payment; franchised and branded remodelers can use different legal names.
- 04 If the contractor says they are only a registered company, ask whether that status actually covers the role they will play on your project.
- 05 Use DLI records before permit application so there is time to change contractors if the credential is not right.
§ 05
Frequently asked
Minnesota-specific licensing questions
01 What is contractor licensing in Minnesota and how does it work? ▸
Minnesota requires residential contractors and remodelers to be licensed by the Department of Labor and Industry (DLI) under MN Statute §326B.02 et seq. Any person contracting to perform residential construction or remodeling for compensation must hold a DLI Residential Contractor or Residential Remodeler license. This is a formal licensing system requiring exam passage, insurance, and a surety bond — not a simple registration.
02 What work requires a licensed contractor in Minnesota? ▸
Under MN Stat. §326B.802, any contractor performing residential construction or remodeling work on one- to four-family dwellings for compensation must hold a DLI Residential Contractor or Residential Remodeler license. Specialty trades — electrical under §326B.31, plumbing under §326B.41, and HVAC — are separately licensed by DLI and must be licensed regardless of project value or structure type.
03 How do I verify a contractor's license in Minnesota? ▸
Use the DLI License and Registration Lookup at dli.mn.gov/license-and-registration-lookup. Search by contractor name or license number, confirm the license is Active and not expired or suspended, and verify the classification (Residential Contractor vs. Residential Remodeler) matches your project. Also check for any disciplinary actions or complaints on file. Minnesota DLI licenses renew biennially.
04 What happens if a contractor is unlicensed in Minnesota? ▸
Under MN Stat. §326B.082, performing residential contractor work without a DLI license is a gross misdemeanor resulting in civil fines up to $10,000 per violation. An unlicensed contractor cannot enforce a contract or collect payment in Minnesota courts. Homeowners who hire unlicensed contractors lose access to the Contractors Recovery Fund under §326B.57, which provides up to $75,000 compensation for losses caused by licensed contractors.
05 What insurance and bond does a licensed contractor need in Minnesota? ▸
Minnesota residential contractors must carry general liability insurance of at least $100,000 per occurrence and $300,000 aggregate, plus a $15,000 surety bond under MN Stat. §326B.802. Workers' compensation is required under §176.181 for any contractor with employees. Request a current certificate of insurance naming you as an additional insured and verify coverage with the issuing insurer before any work begins.
06 Does Minnesota require workers' compensation for contractors? ▸
Yes. Minnesota requires workers' compensation for employers with one or more employees under MN Stat. §176.181. Minnesota's law is broad — even sole proprietors who employ others must carry coverage. If an uninsured contractor's employee is injured on your property, you may face liability as the property owner. Always require and verify a certificate of workers' compensation insurance before work begins.
07 Can I do my own home improvement work without a licensed contractor in Minnesota? ▸
Yes. Minnesota's owner-builder exemption under §326B.802 allows homeowners to perform construction or improvement work on their own primary residence without a contractor license, provided the work is for personal occupancy and not for sale or rent. The exemption does not cover specialty trades — electrical work requires a licensed electrician under §326B.31, and plumbing must be performed by a licensed plumber under §326B.41.
08 How do I file a complaint against a contractor in Minnesota? ▸
File a complaint with the Minnesota Department of Labor and Industry at dli.mn.gov/business/residential-contractors/file-complaint. DLI investigates violations of §326B and can revoke licenses, impose fines, and order restitution. Claims against the Contractors Recovery Fund (up to $75,000) are also filed through DLI. For consumer fraud, contact the Minnesota Attorney General at ag.state.mn.us. Small claims court handles disputes up to $15,000.
state Minnesota agency Department of Labor and Industry License and Registration Lookup tier 2
Department of Labor and Industry License and Registration Lookup is the official source for contractor licensing information in Minnesota. Always verify a contractor's license before hiring. Jaspector is not affiliated with Department of Labor and Industry License and Registration Lookup; this page is informational guidance only.