Contractor licenses and permits: what you need to know
Updated 2026-09-20
Two separate things protect you on a home-improvement job: the contractor's license and the permit for the work.
Licensing
Rules vary by state. Some license by trade, some by the dollar value of the job, and some only require registration. The trades — electrical, plumbing and HVAC — are licensed in most states even where general contractors are not. Before you hire, confirm the contractor holds the right license for the work and the location, and verify it on the state board's public search. Check that it's active and free of recent discipline.
Permits
Most structural, electrical, plumbing, mechanical, roofing and addition work needs a permit; small cosmetic repairs usually don't. A permit means the work is inspected against code — that protects your resale value and your insurance claim if something goes wrong.
Who pulls the permit
The licensed contractor should pull the permit in their own name. If a contractor asks you to pull it yourself "to save time," be cautious: a homeowner-pulled permit shifts liability for the work onto you, and it's a common move by unlicensed operators. Keep a copy of the permit and the final inspection sign-off.