Minnesota has some of the most detailed contractor licensing requirements in the Midwest. The Department of Labor and Industry (DLI) administers licenses for residential construction trades, with strict bonding, insurance, and continuing education mandates that change periodically.
This guide covers everything you need to know about MN contractor license requirements in 2026 — whether you're applying for the first time, renewing, or hiring a contractor and want to verify their credentials.
Minnesota Contractor License Types (DLI)
The DLI administers several distinct contractor license categories. These are not interchangeable — a residential building contractor cannot legally perform work requiring a remodeler license, and vice versa.
Residential Building Contractor
Required for: New residential construction, additions to existing homes, or structural alterations to single-family or multi-family dwellings (up to 4 units).
- Exam required: Yes — the Minnesota Residential Building Contractor exam
- Bond required: $15,000 surety bond
- Insurance required: General liability ($100,000 minimum) + Workers' compensation if employees
- Continuing education: 14 hours per renewal period
- Renewal: Every 2 years
Residential Remodeler
Required for: Remodeling, altering, or improving existing residential structures. This includes kitchen remodels, bathroom renovations, basement finishing, and similar work on occupied homes.
- Exam required: Yes — the Residential Remodeler exam
- Bond required: $15,000 surety bond
- Insurance required: General liability + Workers' compensation
- Continuing education: 14 hours per renewal period
- Renewal: Every 2 years
Residential Roofer
Required for: Any roofing work on residential structures, including shingle replacement, flat roofing, flashing, and gutters when part of a roofing contract.
- Exam required: No separate exam — but must demonstrate competency
- Bond required: $15,000 surety bond
- Insurance required: General liability + Workers' compensation
- Continuing education: 7 hours per renewal period
- Renewal: Every 2 years
Manufactured Home Installer
Required for: Installing, transporting, or setting up manufactured homes. This is a distinct license from residential contractor and covers specialized site preparation and utility connection work.
- Exam required: Yes
- Bond required: $10,000 surety bond
- Insurance required: General liability
- Renewal: Every 2 years
Residential Specialty Contractor
Required for: Specialty trades like siding, windows, insulation, and drywall when performed as a primary business. This is a lower-tier license for businesses that only do one type of work.
DLI Licensing Requirements: Step by Step
1. Meet Eligibility Requirements
Most DLI contractor licenses require the applicant to be at least 18 years old, have a valid Social Security Number or ITIN, and demonstrate relevant experience or education. There's no minimum years-of-experience requirement for most license types, but the exam effectively screens for competency.
2. Pass the Exam
The residential contractor and remodeler exams are administered by PSI Exams. The exam covers:
- Minnesota Building Code fundamentals
- Contract law and business practices
- Safety regulations and OSHA requirements
- Trade-specific technical knowledge
Passing score is 70%. You can retake the exam if you fail, but must wait and pay another fee. Most exam centers are in Minneapolis, St. Paul, Rochester, and Duluth.
3. Get Your Bond and Insurance
The $15,000 surety bond is required before DLI will issue your license. This bond protects consumers if the contractor fails to complete work or causes damage. The annual cost of a surety bond is typically $100–$300 depending on your credit history.
General liability insurance minimums are set by DLI. Make sure your insurer names the State of Minnesota as a certificate holder on your liability policy.
4. Submit Your Application
Applications go through the DLI website or by mail. Required documents include:
- Completed application form
- Exam passing certificate
- Proof of surety bond (bond certificate)
- Certificate of insurance (liability + workers' comp if applicable)
- Application fee (varies by license type)
5. Maintain Your License
Most contractor licenses require 14 hours of continuing education every two years. Approved providers include trade associations (Minnesota Builders Association, Minnesota Remodelers Council) and private training companies. You must complete CE before your license renewal date or face a lapsed license.
What Happens If You Work Without a License
Operating as a residential contractor in Minnesota without a valid license is a misdemeanor under Minnesota Statute 326B.701. Penalties include:
- Fines up to $1,000 per violation
- Stop-work orders on active projects
- Civil liability to homeowners for damages
- Inability to collect payment on contracts (courts may refuse to enforce contracts with unlicensed contractors)
Verify a Minnesota Contractor License
Before hiring any contractor, verify their license status through our free search tool. We cover all DLI contractor license types with 244,000+ records updated daily.
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