How to Start a General Contracting Business in Georgia: Residential and Commercial Licenses and Net Worth

October 29, 2026

If you plan to build, remodel, or manage construction work for other people in Georgia, you will likely need a state license from the State Licensing Board for Residential and Commercial General Contractors. This guide covers the general contractor license, the four license categories, and the net worth, insurance, experience, and exam requirements, plus the entity, tax, and local steps that come with starting the business. If you searched for a Georgia contractor license in general, this page covers general contracting. If your work is limited to one trade, start with the trade pages. Electrical, plumbing, and conditioned air contractors are licensed by a different board under O.C.G.A. Title 43, Chapter 14, so see our Georgia electrician business guide. For other specialty work, see our specialty contractor guide.

Who Licenses General Contractors in Georgia

The State Licensing Board for Residential and Commercial General Contractors licenses general contractors under O.C.G.A. Title 43, Chapter 41. The Board sits within the Secretary of State's Professional Licensing Boards Division. Confirm current forms and fees with the Division before you file, because the 2025 law known as HB 635 moved net worth, insurance, and continuing education amounts into the division's rules.

Whether you need a license depends on the type of work and its size:

• Residential contractors. A residential contractor is anyone who does fixed-price or fee work above $2,500, measured by the higher of the value of the work or the compensation you receive, in the Residential-Basic or Residential-Light Commercial category. Work at or below $2,500 falls outside that definition, but confirm with the Board before relying on that threshold for a specific job.
• Commercial contractors. Commercial buildings have no dollar trigger. Private commercial and institutional construction requires a Commercial General Contractor license under O.C.G.A. 43-41-2, regardless of job size.

The Board issues four license categories:

Category	Scope	Net worth	General liability per occurrence	Continuing education
Residential-Basic	Detached one- and two-family homes, townhouses up to three stories, and accessory structures	$25,000	$300,000	3 hours a year
Residential-Light Commercial	Multifamily and light commercial buildings under four stories and under 25,000 square feet	$25,000	$500,000	6 hours a year
Commercial General Contractor	Private commercial and institutional construction	$150,000	$500,000	No requirement set; confirm with the Board
General Contractor Limited Tier	Contracts up to $1 million per project	$25,000	$500,000	Confirm with the Board

Confirm all figures in this table with the Board before you apply, since the amounts may change under the rules described above.

Materials and Documents You Need Before You Apply

Gather these items first.

• Entity formation documents. If you form a business entity, you need filed Articles of Organization (LLC) or Articles of Incorporation (corporation), along with the business name you intend to license under.
• A qualifying agent. A business entity needs a qualifying agent who meets the experience and exam requirements.
• Experience records. Project contracts, permits, invoices, and a written summary of your role on each project. Residential-Basic and Commercial applicants must show specific project history.
• Net worth proof. A financial statement or the affirmation, surety bond, line of credit, or letter of credit that the Board accepts for your category.
• Insurance. A general liability policy at the per-occurrence limit for your category, and workers' compensation coverage if you have three or more workers, including part-time workers.
• Continuing education records. Once licensed, you track required hours in CE Broker. Continuing education has been mandatory since January 1, 2026.
• Payment method and fees. Check the Board's current fee schedule before you file. The Residential-Basic qualifying agent form shows $210 ($200 plus a $10 service charge). Check the fee page for the other categories and for exam fees.

Step-by-Step: How to Get a Georgia General Contractor License

Step 1: Choose the Right License Category

Start by matching your typical projects to a category. A contractor who builds single-family homes and townhouses needs Residential-Basic. Someone building small apartment buildings or light commercial projects under four stories and 25,000 square feet should look at Residential-Light Commercial. Anyone doing private commercial or institutional construction needs the Commercial General Contractor license. The Limited Tier fits smaller general contracting work with contracts up to $1 million per project. Decide based on the work you expect to bid, not only the first job.

Step 2: Confirm Your Experience

Every applicant must be at least 21 years old. Residential-Basic applicants need two years of experience with significant responsibility on two projects in the two years before applying. Commercial General Contractor applicants need four years of experience, including two years as or for a general contractor. Keep records that show your role on each project, because the Board may ask you to document it. There is no grandfather clause, so experience gained before the rules applied does not automatically qualify you.

Step 3: Form Your Business Entity and Reserve the Name

Many contractors form an LLC or corporation before applying, because the license is tied to the business that performs the work. The LLC Articles of Organization and corporation Articles of Incorporation each cost $110 ($100 filing fee plus a $10 service charge). Online filings typically take 7 to 10 business days, and paper filings take about 15 business days. Expedited review costs $120 for 2 business days, $275 for same-day review if received by noon, or $1,200 for one-hour review on business days. If you need to hold a name while you prepare, a name reservation lasts 30 days and costs $35. Learn the full formation steps in our guide to starting an LLC in Georgia, and file through the Secretary of State eCorp portal.

Step 4: Name a Qualifying Agent

A business entity needs a qualifying agent. One person can qualify several companies, but each company needs its own separate application. If your qualifying agent leaves, the company must give the Board notice within 30 days. The company then has 180 days to finish open contracts. Plan a backup qualifier if your business depends on one person.

Step 5: Prove Your Net Worth

Residential-Basic and Residential-Light Commercial require $25,000. Commercial General Contractor requires $150,000. The Limited Tier requires $25,000, which you can show by affirmation or with a $25,000 surety bond, line of credit, or letter of credit. Ask the Board which proof it accepts for each category before you apply, so you do not pay for an application that will be returned.

Step 6: Buy the Required Insurance

General liability limits depend on your category. Residential-Basic requires $300,000 per occurrence. Residential-Light Commercial, Commercial General Contractor, and Limited Tier require $500,000 per occurrence. If you have three or more workers, including part-time workers, you must carry workers' compensation insurance. Our Georgia workers' compensation requirements guide explains the coverage in more detail. Ask the Board what proof of insurance it wants with your application, and do not assume a specific certificate format is required.

Step 7: Complete the Application and Pay Fees

Submit the application for your category and the qualifying agent form. Pay the fees listed on the Board's current fee page. The Residential-Basic qualifying agent form is $210. Other fees vary by category, and exam fees are set separately, so confirm the amount for each before you pay.

Step 8: Pass the Exam

The Board administers the exam three times a year. Schedule your exam only after your experience, net worth, and insurance are in order, since the exam is most useful once you can apply for the license right away. Study materials and exam fees are listed by the Board, so confirm those details directly with the agency.

Step 9: Track Continuing Education and Annual Requirements

Once licensed, Residential-Basic holders complete 3 hours of continuing education each year, and Residential-Light Commercial holders complete 6 hours. The Board has not set a continuing education requirement for Commercial General Contractors, so confirm the current rule. Track all hours in CE Broker, which has been mandatory since January 1, 2026. Missing continuing education can jeopardize your license, so schedule courses early in each cycle.

Step 10: Register Your Business and Get Local Permission to Work

A state license does not finish the job. Georgia has no general statewide business license. A business registers its entity with the Secretary of State, registers with the Department of Revenue through the Georgia Tax Center if it sells taxable goods or has employees, and then adds the licenses and permits for its activity. The local license is an occupation tax certificate, often called a business license, issued by the city if your business is inside city limits, or by the county for unincorporated areas. Georgia has 159 counties and about 537 cities, and each sets its own formula, deadlines, and prerequisites. Private employers with more than 10 employees must file an E-Verify affidavit to get the local certificate (O.C.G.A. 36-60-6). Read our Georgia business license guide for more on local certificates. Local building permits still apply to each job, even when you hold a state license.

If you operate under a name different from your legal entity name, you must file a trade name (DBA) with the Clerk of Superior Court of the county where the business is chiefly carried on. It is not filed with the Secretary of State. The clerk fee is about $165 plus newspaper publication once a week for two weeks, so confirm the exact amount with your county clerk. The Secretary of State's business division FAQ explains the general process.

Tax Basics for a New Contracting Business

Georgia levies no franchise tax on a typical single-member or partnership LLC. Income passes through at a single flat individual rate of 5.19% for 2025 and 4.99% for 2026. Corporations, and LLCs taxed as corporations, owe a net worth tax of $0 to $5,000 depending on net worth. The corporate income tax rate equals the individual rate. The Department of Revenue sets the state sales tax at 4%, and combined state and local rates run from 6% to 9% by county and city. For a full breakdown, read our Georgia business taxes guide, and confirm your specific obligations with a CPA.

Exemptions and Work That Falls Outside the License

Not every job requires a general contractor license. Several exemptions may apply, but each has conditions that you should confirm with the Board before you rely on them:

• Own-home exemption. Work on a home you own and occupy is generally exempt, subject to a 24-month rule that you should confirm with the Board.
• Repair exemption. Certain repair work may be exempt. Small jobs often fall into a handyman business category, but confirm the Board's definition before taking on the work.
• Specialty trades. Trades on the Board's exempt list do not need a general contractor license. Roofing work, for example, is covered in our roofing business guide, and other specialty trades are covered in our specialty contractor guide.
• Incidental work by Chapter 14 licensees. Electrical, plumbing, and conditioned air licensees may do incidental work up to the greater of $10,000 or 25 percent of the contract.

A state license generally blocks new local contractor licensing, with one exception: local licenses already in force on July 1, 2004. Local building permits still apply.

Reciprocity With Other States

Georgia has reciprocity arrangements that may recognize licenses from certain other states. Louisiana and Mississippi are recognized for unlimited commercial general contractor licenses. Louisiana, Mississippi, and South Carolina are recognized for Residential-Basic licenses. Applicants generally need three years of active licensing and no disciplinary history in the other state. Confirm the current terms with the Board before relying on an out-of-state license.

Common Mistakes to Avoid

• Assuming a $2,500 trigger applies to commercial work. The dollar threshold applies only to the residential definition. Commercial buildings have no dollar trigger.
• Assuming one insurance limit fits every category. Residential-Basic requires $300,000 per occurrence, not $500,000.
• Ignoring net worth until you apply. Plan the $25,000 or $150,000 figure into your startup budget.
• Forgetting continuing education. The requirement applies to licensed contractors and is tracked in CE Broker.
• Letting the qualifying agent leave without a plan. The 30-day notice and 180-day wind-down rules can disrupt active contracts.
• Skipping the local certificate. A state license does not replace the city or county occupation tax certificate or the building permit for each job.

What to Expect From the Process

Entity formation can often be completed within about two weeks using standard online processing, and the Board's review and exam scheduling typically take longer. Timelines vary, so treat any estimate as a planning assumption rather than a guarantee. Applicants who prepare net worth proof, experience records, and insurance before filing tend to avoid the most common delays. Once licensed, you can usually bid on eligible projects, but local permits and certificates still need to be in place before work starts.

Next Steps

1. Confirm which license category matches your projects.
2. Gather experience records, net worth proof, and insurance quotes.
3. Form your entity and reserve the name if needed.
4. Confirm current fees, net worth rules, and insurance requirements with the Board.
5. File your application, then schedule the exam.
6. Register with the Department of Revenue if needed, and obtain your local occupation tax certificate.

Disclaimer: This article is informational only. It is not legal, tax, or licensing advice. Requirements, fees, and deadlines can change, so confirm them with the State Licensing Board for Residential and Commercial General Contractors, the Secretary of State, the Department of Revenue, and your local government. Because licensing, entity, and tax decisions can be complex, consult a qualified attorney and a CPA before you start or restructure your business.