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If you’re considering starting your own contracting business in Arkansas, it's important to meet the Arkansas contractor licensing requirements — and Arkansas has some pretty specific requirements for contractors, based on the type of work, type of project, and project value. This guide can help you keep track of what kind of license you may need to keep your business above board.

Who needs a contractor license in Arkansas?

Arkansas has some pretty specific requirements for contractors, and they’re based on the type of project as well as the value.

All commercial contractors working on any project that is not a single-family residence where the contract value is $50,000 or more need a license. Arkansas considers single-family residences any building that holds up to four residences.

Residential contractors require a license if they work on projects over $2,000. In both cases, the contract value included the cost of materials, subcontractors, permits, and anything else involved in the project.

Subcontractors can work with certificates instead of licenses, as long as they work for a properly licensed contractor. 

There are many different licenses for which Arkansas contractors can apply, but luckily they all go through the , which has a with links to forms for all types of licenses here.

How to get a commercial contractor license in Arkansas

A commercial license is needed if a contractor performs work of $50,000 or more, including, but not limited to, labor and materials, on a commercial project. Any project that is not a single-family residence is considered a commercial project.

Additionally, commercial contractors have a choice between a restricted commercial license, unrestricted commercial license.

Restricted commercial license holders can work on any project (including residential projects) with a contracted value of up to $750,000. Unrestricted commercial license holders can take on any commercial work.

Both restricted and Unrestricted licenses break down into the following categories:

• Heavy construction
• Municipal and utility
• Highway, railroad, and airport
• Building (commercial and residential)
• Light building
• Mechanical (including Plumbing and HVAC-R)
• Electrical

The Arksans commercial license also contains a section for specialty classifications. There are dozens to choose from, and some (like plumbing, refrigeration, and fire protection, to name a few)t require an additional trade license or certification. The full list is provided in the application document.

The requirements for both license types are largely the same:

1. Complete the application via
2. Submit a $100 filing fee via check made payable to the Contractors Licensing Board.
3. Give three non-supplier or banker references on the forms provided in the application.
4. Provide proof of a $10,000 contractor bond.
5. Take and pass the Arkansas ���Ǵ��� and Law test and provide a copy of the score.
6. Provide a compiled report from a CPA that is less than one year old. The statement must show one-half of the net worth requirement for the classifications in cash in the bank. For commercial licenses, the minimum is $50,000. For specialties, the minimum is $10,000. In lieu of a CPA report, applicants can submit a bond using .
7. If applying as a corporation, LLC, LP, or LLP, attach a copy of the articles/filings from the .��
8. If you have one or more employees, submit proof of .
9. If you’re applying for a residential License or a specialty classification, complete and submit the appropriate application as well. You don’t have to send an additional fee or take an additional test.

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How to get a residential contractors license in Arkansas

Contractors working on residential projects with contracts valued at over $2,000 will also have to carry a residential builders license. This license will also allow you to perform remodeling work on single-family residences.

Residential builders license

A residential builders license is a requirement to build single-family residences. The requirements are:

1. Complete the application via .
2. Submit a $100 check made out to the Contractors Licensing Board.
3. Supply three non-supplier or banker references on forms provided in the application.
4. Take and pass the Arkansas ���Ǵ��� and Law test and provide a copy of the score.
5. Supply a compiled report from a CPA, and all statements must show positive net worth.
6. If applying as a corporation, LLC, LP, or LLP, attach a copy of the articles/filings from the .��
7. Provide proof of Worker’s Compensation insurance if you have one or more employee.

Residential remodelers license

If a contractor doesn't need a full builders license, the residential remodelers license is similar — you can’t build new homes, but you can remodel or build an addition. It’s available in both limited and unlimited classifications. With a limited license, contractors can only work on projects valued at less than $50,000. 

The requirements for limited licenses are:

1. Complete the application via .
2. Submit a $50 check made out to the Contractor Licensing Board.
3. Supply three non-supplier or banker references on forms provided in the application.
4. Take and pass the Arkansas ���Ǵ��� and Law test and provide a copy of the score.
5. If applying as a corporation, LLC, LP, or LLP, attach a copy of the articles/filing from the .

The requirements for unlimited licenses are:

1. Complete the application via .
2. Submit a $50 check made payable to the Contractors Licensing Board.
3. Supply three non-supplier or banker references on forms provided in the application.
4. Take and pass the Arkansas business and Law test and provide a copy of the score.
5. Provide current compiled balance sheet less than one year old, and all statements must show positive net worth.
6. If you’re applying as a corporation, LLC, LP, or LLP, attach a copy of the articles/filings from the .
7. Supply proof of worker’s compensation if you have one or more employees.

Home improvement license

Home improvement licenses are for contractors such as roofers, painters, tile installers, and other specialty trades. These licenses come in limited and unlimited categories. Like the other licenses, limited contractors can work on projects up to $50,000.

The requirements for a limited home Improvement license are:

1. Complete the application via .
2. Choose a specialty as on page 6 of the above.
3. Show proof of your work experience in the chosen specialty.
4. If you’re applying as a corporation, LLC, LP, or LLP, provide articles/filings from the .

The requirements for an unlimited home improvement license are:

1. Submit a $50 check made payable to the Contractors Licensing Board.
2. Choose a specialty.
3. Show proof of work experience in the chosen specialty.
4. Provide current compiled balance sheet less than one year old, and the statements must show positive net worth.
5. If you’re applying as a corporation, LLC, LP, or LLP, provide articles/filings from the .

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Arkansas subcontractor licensing

Subcontractors don’t have to carry licenses as long as they’re working for a licensed contractor. They do, however, have to get certified with the Contractors Licensing Board.

The steps to registering for certification are:

1. Complete the application via .
2. Submit a $100 check made payable to Contractors Licensing Board.
3. Choose a specialty.
4. Submit proof of a $10,000 contractor’s bond.
5. Provide proof of worker’s compensation insurance.
6. Documentation proving the business is in good standing with the .

License reciprocity

Reciprocity for contractors currently licensed in neighboring states and wishing to work in Arkansas is available to general contractors and electrical contractors.

The Contractors Licensing Board State of Arkansas provides contractor license reciprocity with Tennessee, Mississippi, Alabama, and Louisiana provided you’ve been licensed for a minimum number of years : 

• Alabama: You must have a valid contractor license for at least one (1) year
• Louisiana: You must have a valid contractor license 
• Mississippi: You must have a valid contractor license for at least one (1) year
• Tennessee: You must have a valid contractor license for at least three (3) years 

Arkansas provides reciprocity for electrical contractors, but the availability depends on their classification. Master electricians only have reciprocity with Oregon. However, journeyman license reciprocity is available with Alaska, New Mexico, Minnesota, Montana, Nebraska, New Hampshire, Oklahoma, Oregon, South Dakota, Texas, Utah, and Colorado.

Penalties for unlicensed contracting

Arkansas contractors caught working without licenses when the work requires one are susceptible to fines and penalties issued by the state along with potential loss of rights to get paid for work.

State fines could cost them between $100 and $200 for each offense, and each day constitutes a new offense. Unlicensed contracting is also a Class A misdemeanor, which means it could carry some jail time.

Additionally, while do not explicitly require a contractor to carry a license in order to file a mechanics lien, the contractor licensing statutes and case law suggest that a license is necessary to be able to file a mechanics lien if required.

A contractor’s license in Arkansas is required for contractors and subs if the contract price is over $50,000 on commercial projects and over $2,000 for residential projects. Additionally, under “[n]o action may be brought either at law or in equity to enforce any provision of any contract entered into in violation of this chapter.” Lastly, . Therefore, it appears that a license is required for lien rights in Arkansas.

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