Are you looking for information on how to become a general contractor in Kentucky? If so, you're in the right place. In this blog post, we'll discuss the Kentucky general contractor license requirements for 2024, as well as what you'll need to do to apply and obtain your license. We'll also provide tips and advice for getting your license approved as quickly as possible. So, if you want to know more, keep reading!

Does Kentucky Require a General Contractor License?

The State of Kentucky mandates state-issued licenses solely for electrical contractors, plumbing contractors, and HVAC contractors. For all other professions, licensing procedures are managed by local municipalities and counties.

Who Issues a Kentucky Contractor License?

The state  of Kentucky exclusively provides licenses for electrical, HVAC, and plumbing contractors, and these licenses are issued through the Kentucky Department of Housing, Building, and Construction. However, for all other professions, such as construction and general contracting, licensing procedures are managed at the municipal or county level. 

Kentucky Contractor License Requirements by Municipality

If you're wondering how to become a general contractor in Kentucky, you'll need to follow specific licensing procedures depending on your location within the state. Below, we outline the requirements and steps for obtaining a general contractor license in different cities/counties in Kentucky:

Louisville, KY General Contractor License

Your general contractor application and licensure in Louisville will be managed by the Louisville Metro Department of Codes and Regulations. To become a licensed general contractor in Jefferson County/Louisville, you must meet the following conditions:

1. Obtain an occupational license number through the Louisville-Jefferson County Revenue Commission.

2. Provide proof of unemployment and workers’ compensation insurance, or sign an affidavit stating that your company has no employees.

3. Provide proof of a certificate of insurance for a commercial general liability policy with a minimum of $250,000 per person or $500,000 aggregate, including products and completed operations coverage (with the Louisville Metro Department of Codes and Regulations as the certificate holder).

4. Some projects may require a surety bond from a bonding company; the cost varies by project and is not included in the licensure fee.

5. Submit an application and pay all application and licensing fees.

Bowling Green, KY General Contractor License

In Bowling Green/Warren County, the Contractors Licensing Board authorizes and issues all contractors licenses. Before obtaining building permits, you must adhere to the board's rules and regulations. Your Contractor License Application must include:

1. Company information (name, business structure, partners, etc.).

2. Any current Kentucky Licenses you may hold.

3. Proof of general liability insurance with a minimum of $100,000 in coverage and workers compensation insurance. If you have no employees, you can sign an Affidavit of Exemption instead of workers compensation.

4. A completed and signed application.

5. Payment of necessary application and licensing fees.

Lexington, KY General Contractor License

In Fayette County or Lexington, your contractors license will be issued by the Lexington Fayette Urban County Government. To obtain a valid license, your application must include the following:

1. Your contractor business name.

2. Disclosure of business structure and information, including whether it's an Individual, Partnership, or Corporation.

3. A list of any current Kentucky Licenses you may hold for the trades you perform.

4. Proof of general liability insurance with the necessary coverage for the license type.

5. Proof of workers’ compensation insurance, or an exemption affidavit from the Kentucky Workers’ Compensation Act.

6. Certificate of current business license.

7. Participation in mediation selection and certification.

8. A signed and notarized application.

9. Payment for application and licensing fees.

Kentucky Contractors Exam

Examinations and education requirements for contractor licenses in Kentucky are determined by local governing agencies. Contact your local licensing agency to understand which contractor licenses require an exam.

Kentucky State Business Licenses and Registration

If you plan to own a contracting company in Kentucky, you can register your business, obtain a Federal Employer Identification Number, and complete other tax requirements through Kentucky's One Stop Business Portal

How Much Does Licensing Cost?

The cost of a general contracting license in Kentucky can vary depending on the specific city or county where you are applying for the license. Generally, you can expect to pay an initial application fee, an annual renewal fee, and potentially additional fees for specialized licenses or endorsements. For example, in Louisville, the fees for Building Type A and Building Type B general contractor licenses are $125 and $50 annually, respectively. In Lexington, the fees for general contractor licenses range from $40 to $200 for the initial fee and $30 to $75 annually. It's essential to check with the local licensing authority for the most up-to-date and accurate fee information for your specific location in Kentucky.

Penalties for Unlicensed Contractors in Kentucky

Although Kentucky does not endorse unlicensed contracting, it delegates the enforcement of penalties primarily to local municipalities. Consequently, numerous local jurisdictions have established their own punitive measures for engaging in contracting without a license, often entailing substantial fines and the potential for imprisonment.

As an illustration, contractors operating in Lexington-Fayette who fail to adhere to local licensing and registration regulations may face fines ranging from $50 to $500 per violation, with each day constituting a new violation.

Leveraging your license on Houzz

Now that you know the Kentucky contractor license requirements, it’s time to start thinking about how you can promote your license to potential clients. Everyone who’s anyone knows the value of a blue checkmark on social media. That’s what the green Verified License Badge is for businesses on Houzz Pro. With one glance, this Badge helps you:

• Let homeowners know that your business is licensed by state industry experts.
• Stand out from the competition while homeowners consider who to hire
• Add credibility to your company name, providing peace of mind to future clients

Here are the steps you can take to add a verified license to your Houzz profile. If you haven’t created a free profile on Houzz, sign up today and get ready to make a bigger impact with your business’ online presence.