Contractor License Requirements in Michigan

Michigan requires contractor licensing for construction work on projects exceeding $600. The licensing process is overseen by the Michigan Department of Licensing and Regulatory Affairs (LARA). Michigan requires licensing for residential builders and maintenance/alteration contractors for projects over $600. Applicants must pass a competency exam and demonstrate financial responsibility. The Michigan Homeowner Construction Lien Recovery Fund protects homeowners against contractor fraud.

Important

Never hire a contractor who cannot provide a valid license number. A legitimate contractor will have no hesitation sharing their license credentials for you to verify independently. If a contractor refuses, discourages you from checking, or makes excuses, treat that as a serious red flag.

Michigan Department of Licensing and Regulatory Affairs (LARA)

Search by: License number, Business name, Last name, City

Follow these steps to verify a contractor's license in Michigan:

1. 1
   Go to the Michigan LARA license searchVisit the Michigan Department of Licensing and Regulatory Affairs license verification system. Michigan licenses residential builders and maintenance/alteration contractors for projects over $600.
2. 2
   Search by license number or nameEnter the contractor's license number, business name, or personal name. You can also filter by city to find licensed contractors in your area.
3. 3
   Verify the license type and statusCheck that the license type matches the work being performed. A Residential Builder license covers new construction, while a Maintenance and Alteration Contractor license covers repairs and remodeling over $600. Both must show active status.
4. 4
   Check the Homeowner Construction Lien Recovery Fund statusMichigan maintains a recovery fund that protects homeowners. Verify the contractor is in good standing with the fund. If a contractor has claims against the fund, that is a significant warning sign.
5. 5
   Review complaints and enforcement actionsCheck for any complaints or enforcement actions through LARA. Michigan tracks contractor violations including unlicensed work, poor workmanship complaints, and failure to complete projects.

What to Look for in Verification Results

• License must be active and current -- not expired, suspended, or revoked
• License type must match the scope of work (Builder vs. Maintenance and Alteration)
• Check the Homeowner Construction Lien Recovery Fund status
• Review any complaints or enforcement actions through LARA
• Verify insurance coverage -- ask for a certificate of general liability insurance
• Confirm the qualifying individual on the license is still associated with the company

Hiring an unlicensed contractor in Michigan carries significant risks for both the homeowner and the contractor:

• No consumer protections: State recovery funds and guaranty programs typically only cover work performed by licensed contractors.
• Insurance issues: Your homeowner's insurance may deny claims related to work done by an unlicensed contractor.
• Permit problems: Building permits often require a valid contractor license. Work done without permits can create issues when selling your property.
• Quality concerns: Licensed contractors have demonstrated minimum competency through exams, experience requirements, or both.
• Legal liability: Homeowners may bear greater legal responsibility for injuries or property damage caused during unlicensed work.
• Penalties: In Michigan, unlicensed contracting can result in fines and criminal penalties for the contractor, and the homeowner may lose the ability to enforce the contract.

Michigan does not currently have reciprocal contractor licensing agreements with other states. Contractors licensed in other states must apply for a new Michigan license through the standard application process. Some states may credit out-of-state experience toward licensing requirements -- contact the Michigan Department of Licensing and Regulatory Affairs (LARA) for details.