Tennessee Small Commercial Contractor (BC-b)

License Requirements

• The first step in the licensing process is to pass the exams. You will then submit an application to the state licensing board with documentation of your experience, financial information and your passing test scores.
• The Business and Law exam is required for licensure in every Contractor classification
• The monetary limit (limit per contract) is based on 10 times the lesser of the net worth or working capital or experience. (Working capital is current assets minus current liabilities and net worth is total assets minus total liabilities). A reviewed financial statement is required for monetary requests of $3,000,000 or less.
• A CPA audited financial statement is required for monetary requests exceeding $3,000,000. To obtain an unlimited license, applicants must have over $300,000 in both net worth and working capital.
• All contractors with 1 or more employees are required to carry Worker’s Compensation insurance. Every applicant will be required to provide a certificate of insurance proving an adequate amount of liability insurance. The requirements are as follows: Monetary Limit Minimum Insurance Up to $500,000 -----$100,000 $501,000 to $1,500,000 -----$500,000 $1,501,000 to Unlimited -----$1,000,000