Arkansas Contractor License Thresholds and Fees: $50,000 Commercial Line, Residential Licenses, Roofer Registration and State Trade Licenses

If you plan to bid, sign or perform construction work in Arkansas, the first question is which license, if any, applies to the job. The answer depends on three things: whether the work is commercial or residential, what the project costs in labor and materials, and which trade is doing the work. This guide covers the thresholds and fees for each path so you can narrow the requirement before you contact an agency.

Disclaimer: This is informational content, not legal or tax advice. Licensing rules, fees and exemptions can change, so read the cited statutes in full and confirm current requirements with the named agency. For a specific project, consider speaking with an attorney or CPA, especially if the work mixes residential and commercial jobs or if you are forming a business entity.

Start With the License Map

Arkansas has no general statewide business license, and the Secretary of State does not issue business licenses. Contractor licensing is organized by trade and project type, so the regulating body depends on what you do:

• Commercial (non-residential) contracting: Arkansas Contractors Licensing Board, Department of Labor and Licensing, 501-372-4661.
• Single-family residential building, remodeling and specialty work: Residential Contractors Committee.
• Residential roofing: registration under the Roofers Registration Law. The Committee does not license roofers.
• Electrical work: Board of Electrical Examiners, Department of Labor and Licensing.
• HVAC/R work: HVAC/R Board, Department of Labor and Licensing.
• Plumbing: Department of Health, not the Department of Labor and Licensing.

The $50,000 Commercial Line

The commercial threshold is the most important number in Arkansas contractor licensing. Under A.C.A. 17-25-101 et seq., non-residential work valued at $50,000 or more, counting labor and materials together, requires a commercial contractor license. Work below that figure is not covered by this commercial requirement, but confirm with the Contractors Licensing Board how your specific scope is classified, because other licensing rules may still apply.

To obtain the commercial license, expect to meet these requirements:

• A $10,000 bond.
• Passing the Business and Law exam.
• A financial statement prepared by a CPA.
• A $100 fee for a new license and a $50 fee for renewal.

Because the threshold counts total project value, a single job that crosses $50,000 can require the license even if each individual invoice looks smaller. Track the full contract value, including materials, from the start.

Residential Licenses Through the Residential Contractors Committee

Single-family residential work is licensed by the Residential Contractors Committee under A.C.A. 17-25-501 et seq. There are two license levels, and they carry different fees and different project limits:

License	New fee	Renewal fee	Project limit
Builder	$100	$50	No cap stated in this guide
Remodeler or specialty	$50	$25	Cannot take a project of $50,000 or more if limited

The practical difference is scope. A limited-license remodeler or specialty contractor cannot accept a project of $50,000 or more, so a contractor who regularly bids larger jobs should plan to hold a broader license. Confirm with the Committee which category covers the work you actually perform.

The $2,000 Exemption and the Splitting Rule

A.C.A. 17-25-513(3) exempts residential projects costing $2,000 or less from the Committee's licensing requirement. Two limits matter:

• Splitting defeats the exemption. Dividing one project into several smaller contracts to stay under $2,000 does not avoid licensing. Treat related work at the same property as one project.
• Owners are exempt for their own homes. A homeowner working on their own residence is exempt. This does not extend to hiring an unlicensed person to do the work for a fee.

Keep written records of each contract, invoice and date. If an inspector or the Committee questions whether jobs were split, those records are your evidence.

Handyman Work in Arkansas

Arkansas does not use a separate handyman license in the rules this guide covers, so do not assume a handyman exemption exists. The working rules are the $2,000 residential exemption and the Committee's remodeler and specialty categories. Above $2,000, residential work performed by someone other than the owner is licensed through the Committee. Whether a particular handyman scope fits the exemption or a category is a question to confirm with the Contractors Licensing Board at 501-372-4661 before you take the job.

Home Improvement License

The phrase "home improvement license" does not describe a separate category under the rules covered here. Home improvement work usually maps to the remodeler or specialty category, which carries the $50 new and $25 renewal fees and the $50,000 limit for limited licenses. Ask the Committee which category matches your trade before you advertise or sign a contract, because the category determines what you are allowed to bid.

Roofer Registration

Residential roofers are not licensed by the Committee. Instead, they register for $20 under the Roofers Registration Law (A.C.A. 17-25-601 et seq.), which has applied since January 1, 2022, and the registration certificate is issued by the Residential Contractors Committee. Before you bid, confirm with the Committee the current renewal terms and whether any commercial roofing work falls under the commercial license instead.

State Trade Licenses: Electrical, HVAC/R and Plumbing

Trade licenses are separate from the general contractor categories above. Each trade has its own agency:

• Electricians are licensed by the Board of Electrical Examiners within the Department of Labor and Licensing.
• HVAC/R technicians are licensed by the HVAC/R Board within the Department of Labor and Licensing.
• Plumbers are licensed by the Department of Health. Applicants often look to the Department of Labor and Licensing first, so check the correct agency before filing.

A general contractor license does not authorize electrical, HVAC/R or plumbing work. If your project includes those trades, confirm whether your crew holds the correct trade license or whether a licensed subcontractor must perform that portion.

City Business Licenses

Cities do not license contractors, but many impose their own business license, privilege license or registry, and each city sets its own basis. Examples include:

• Little Rock and North Little Rock: a license based on a base fee plus the number of employees.
• Bentonville: a free registry.
• Conway: no business license.

Arkansas has 75 counties and 500 municipalities, and counties issue no general business license. Check the city where your office is located and the city where you perform work, because the two may differ.

Registrations That Apply to Most Contractors

Separate from occupational licensing, most contractors need one or more registrations:

• Sales and use tax permit: $50, applied for through the Arkansas Taxpayer Access Point (ATAP) at the Department of Finance and Administration. Whether your contract work is taxable is a question for the Department or a CPA.
• Withholding: registered through ATAP if you have employees.
• Unemployment insurance: registered with the Division of Reemployment.
• Business entity: an LLC files a Certificate of Organization (Form LL-01) with the Arkansas Secretary of State for a $45 filing fee online ($50 on paper). The Secretary of State completes most filings within two business days of receipt. Each LLC pays a $150 Annual LLC Franchise Tax Report, due May 1. A corporation files Articles of Incorporation (Form DN-01) for the same $45 online fee ($50 on paper) and pays the Annual Corporation Franchise Tax Report, due May 1.
• Registered agent: every entity must maintain an Arkansas registered agent at a street address. A P.O. Box is not acceptable, and an incomplete filing will be returned.
• Trade names: an LLC or corporation files a fictitious name with the Secretary of State for $22.50 online or $25 on paper. A sole proprietor records the assumed name with the county clerk, and the clerk's fee is set by each county.

Before you choose a name, search the Secretary of State business database. The Secretary of State issues distinguishable names but does not grant an exclusive right to use one.

Next Steps Before You Bid

1. Estimate the total value of each project, including labor and materials, and check it against the $50,000 commercial line.
2. Determine whether each job is residential or commercial, and whether it falls under the $2,000 exemption.
3. Choose the correct license category: commercial, builder, remodeler or specialty.
4. Identify which trades on the job require separate licenses: electrical, HVAC/R or plumbing.
5. Confirm any roofer registration requirement before bidding roofing work.
6. Check the city where you work for a business license or registry.
7. Register with ATAP, the Division of Reemployment and the Secretary of State as your structure requires.

Confirm Details With the Agencies

The fees and thresholds in this guide reflect the rules as of October 2026. Several points are best confirmed directly before you file or bid:

• The Contractors Licensing Board, Department of Labor and Licensing, at 501-372-4661, for commercial licensing and how your scope is classified.
• The Residential Contractors Committee, for residential license category and exemption questions.
• The Residential Contractors Committee, for the roofer registration filing process and renewal terms.
• The Department of Finance and Administration, for whether your work is taxable and how to register.
• The city or cities where you work, for local business license requirements.

Contractors with complex jobs, multiple trades, or an entity structure should consider consulting a qualified attorney or CPA before committing to a contract.