Arkansas Contractor License Requirements
Every figure below was read off the CLB or the statute, and the sentence it came from is listed at the bottom of this page. Where a figure could not be verified this page says so rather than showing a number.
What the state requires
- Licence
- Commercial Contractor License, Building classification (Restricted or Unrestricted)
- Issued by
- Arkansas Contractors Licensing Board, Arkansas Department of Labor and LicensingArk. Code Ann. § 17-25-101 et seq. (Act 150 of 1965); 17 CAR § 255
- Exam
- Arkansas Business and Law Examination. The commercial application requires no separate state trade examination - the classification is established by three references verifying experience.PSI
- Exam fee
- $84$100 non-refundable, non-transferable filing fee by check or money order with the application; the statute caps both the application fee and the annual renewal fee at $100. Renewal filed before expiration is $50; filed within 30 days after expiration it is $100. The $84 examination fee is paid to PSI and is not refundable or transferable. A sole proprietor may qualify for an initial fee waiver under the Workforce Expansion Act of 2021.
- Application fee
- $100
- Initial licence fee
- No verified figure
- Licence bond
- $10,000A $10,000 contractor's surety or cash bond payable to the State of Arkansas, conditioned on complying with Arkansas tax law, the Division of Workforce Services Law and the Workers' Compensation Law. It must be in the principal's exact name and EIN as registered with the Secretary of State, and the licence is approved but not released until the bond and power of attorney are on file. Separately, an applicant may file a surety bond IN LIEU OF the financial statement, in an amount ten times the required net worth for the classification - $500,000 for Building - and that bond does not replace the $10,000 bond.
- General liability
- Not requiredThe board requires no general liability policy. If the applicant has one or more employees it must carry workers' compensation and provide a current certificate of insurance verifying the coverage.
- Workers compensation
- Required
- Experience
- No verified figureNo fixed number of years. Three references on the board's forms, no more than 90 days old and not from a supplier or banker unless they have observed the work, verify the experience for the classification or specialty requested.
- Financial requirement
- Minimum business-related net worth by classification: Heavy, Highway/Railroad/Airport, Municipal & Utility and Building $50,000; Light Building, Mechanical and Electrical $20,000; Specialty $5,000. New applicants must hold one half of the minimum in cash in the bank - not a stockholder note or receivables - and must show positive working capital.
- Continuing education
- No continuing education requiredNo continuing education requirement appears in the Arkansas commercial contractors licensing law or the board's rules.
- Renewal
- Every year
- NASCLA exam
- AcceptedNASCLA lists the Arkansas Contractors Licensing Board as a participating state agency. The board's own January 2025 commercial application still requires a passing Arkansas Business and Law test score, which the NASCLA exam does not cover.
What people get wrong
A licence is required for commercial work of $50,000 or more. Two tiers exist: the January 2025 commercial application says a Restricted Commercial licence can only take commercial projects under $750,000 and requires only a CPA-compiled statement, while 17 CAR § 255-401 defines 'restricted license' as authorising less than $1,500,000 for a single commercial project; the Unrestricted licence needs an audited or reviewed statement. Those two official documents disagree on the threshold, so neither number is recorded in a numeric field. A commercial licence automatically qualifies the holder for residential work in the same classifications. The licence expiration date is set by the date of the financial statement submitted, so renewal is effectively annual on that anniversary.
Frequently asked questions
- Do I need a contractor licence in Arkansas?
- Yes. Arkansas issues a state general contractor licence — Commercial Contractor License, Building classification (Restricted or Unrestricted) — through the Arkansas Contractors Licensing Board, Arkansas Department of Labor and Licensing. A licence is required for commercial work of $50,000 or more. Two tiers exist: the January 2025 commercial application says a Restricted Commercial licence can only take commercial projects under $750,000 and requires only a CPA-compiled statement, while 17 CAR § 255-401 defines 'restricted license' as authorising less than $1,500,000 for a single commercial project; the Unrestricted licence needs an audited or reviewed statement. Those two official documents disagree on the threshold, so neither number is recorded in a numeric field. A commercial licence automatically qualifies the holder for residential work in the same classifications. The licence expiration date is set by the date of the financial statement submitted, so renewal is effectively annual on that anniversary.
- How much is the Arkansas contractor licence bond?
- $10,000. A $10,000 contractor's surety or cash bond payable to the State of Arkansas, conditioned on complying with Arkansas tax law, the Division of Workforce Services Law and the Workers' Compensation Law. It must be in the principal's exact name and EIN as registered with the Secretary of State, and the licence is approved but not released until the bond and power of attorney are on file. Separately, an applicant may file a surety bond IN LIEU OF the financial statement, in an amount ten times the required net worth for the classification - $500,000 for Building - and that bond does not replace the $10,000 bond.
- Does Arkansas accept the NASCLA exam?
- Yes. NASCLA lists the Arkansas Contractors Licensing Board as a participating state agency. The board's own January 2025 commercial application still requires a passing Arkansas Business and Law test score, which the NASCLA exam does not cover.
Sources
“$100.00 filing fee made payable to the Contractors Licensing Board. (Fees are NON-REFUNDABLE / NON-TRANSFERABLE)”
https://labor.arkansas.gov/wp-content/uploads/NEW-Comm-App-1-2025.pdf“Fully executed $10,000.00 Contractor's Bond, that must be in Principal Name & EIN, as registered with the Secretary of State's office.”
https://labor.arkansas.gov/wp-content/uploads/NEW-Comm-App-1-2025.pdf“Examination Fee: $84.00 Examination fees are not refundable or transferable”
https://labor.arkansas.gov/wp-content/uploads/NEW-Comm-App-1-2025.pdf“If asking for the Building classification, the net worth requirement is $50,000 half of that $25,000 will need to be cash in the bank. If asking for a specialty(s), the net worth requirement is $5,000 half of that $2,500 will need to be cash in the bank.”
https://labor.arkansas.gov/wp-content/uploads/NEW-Comm-App-1-2025.pdf“(b) Thereafter, an annual renewal license or registration fee to be determined by the board but not to exceed one hundred dollars ($100) shall be paid by each licensee or registrant to defray the costs and expenses of the administration of this chapter.”
https://labor.arkansas.gov/wp-content/uploads/Commercial-Contractors-Law-revised-04.2026.pdf“(2) License renewal applications received by the board prior to the expiration date of the license shall be accompanied by a renewal fee of fifty dollars ($50.00)”
https://labor.arkansas.gov/wp-content/uploads/Commercial-Contractors-Law-revised-04.2026.pdf“Minimum business-related net worth for classification or classifications requested (property not used for business purposes is not acceptable): HEAVY $50,000 HIGHWAY, RAILROAD, AIRPORT $50,000 MUNICIPAL & UTILITY $50,000 BUILDING $50,000 LIGHT BUILDING $20,000 MECHANICAL $20,000 ELECTRICAL $20,000 SPECIALTY $5,000”
https://labor.arkansas.gov/wp-content/uploads/Commercial-Contractors-Law-revised-04.2026.pdf“Arkansas Contractors Licensing Board”
https://www.nascla.org/nascla-commercial-exam-participating-state-agencies
Then there is the exam
Practise Arkansas exam questions free, with explanations that cite the reference book and section.