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Comparison

Contractor License Qualifier Rules: What Happens to the License When You Sell a Contracting Business (2026)

We read the licensing statute, board rule or board form in 26 states to see whether a contractor license can follow a sale and how long a company may run after its qualifier leaves.
Primary data
SMBB registry of contractor license qualifier and transfer rules (26 states) joined to Census County Business Patterns 2023
Data period
Law as read 2026-10-31; establishment counts 2023; firm counts 2022
Latest release used
2026-10-31
Next release
Registry recheck January 2027 (Utah H.B. 40 takes effect 2027-01-01); CBP 2024 not posted on www2.census.gov as of 2026-10-31
Geography
26 states with a statewide contractor license or registration
Sources
42 (39 Tier 1)
Short answer

A contractor license qualifier is the person whose exam keeps a company licensed. None of the 26 states we coded provides a way to move a license to an unrelated buyer's company. In 22, the license rests on a qualifier; if that person leaves after a sale, the company has 0 to 120 days, median 60, to replace them.

0 of 26states whose law provides a way to move a contractor license to an unrelated buyer's company (law as read 2026-10-31; 11 say it is not transferable, 14 are silent)[4][14][2][23][10]
60 daysmedian window to replace a departing qualifier, across 18 states that set one (range 0 to 120)[7][2][4][8][11]
50.9%of US construction establishments (NAICS 236 and 238, 2023) are in the 22 coded states where the license depends on a qualifier[27]
90 daysmost common replacement window, used by 7 states including California and North Carolina[4][16][21]

The contractor license qualifier, not the owner, is what keeps the license alive

In 22 of the 26 states coded, the license is issued to the company but only stays valid while a named individual qualifies it. Selling the company does not move that person's exam, experience or certificate to the buyer.

Contractor license qualifier: The individual whose exam, experience and supervision a licensing board relies on to license a company. States use different names: qualifying agent (Florida, Georgia, Tennessee), responsible managing officer or employee (California, Hawaii), qualifying party (Arizona, Louisiana, South Carolina, Mississippi), responsible managing individual (Oregon), qualifying officer (Michigan).

We sorted the 26 states into four models. Most issue the license to the business through a named qualifier. Five (Florida, Georgia, Michigan, New Mexico, South Carolina) also give the qualifier a certificate or license of their own. Ohio, which has no statewide general contractor license, issues its commercial trade licenses to individuals who assign them to one company at a time (Ohio Rev. Code 4740.07). Connecticut, Delaware, North Dakota and Washington register businesses without any qualifier.

Alabama states the point directly: a license belongs to the entity regardless of the status of its qualifying party, and a qualifying party may serve several entities only as a 50% or larger owner of each (Ala. Admin. Code r. 230-X-1-.36). The entity owns the license, but it cannot use it without a qualifier.

This report covers ownership change and qualifiers only. State broker licensing is covered in business broker license rules by state; trade licenses such as electrical and plumbing follow separate rules and are not coded here, except in Ohio.

No coded state lets a buyer take the seller's license

Text in 11 states says the license is not transferable, 5 more require a new license when the entity changes, and the rest say nothing that would let a license move to a new owner.

A contractor license can stay with a company through a sale in one situation: the buyer purchases the licensed entity itself and the qualifier stays. In an asset purchase, the buyer's company is a new licensee and needs its own qualifier. CSLB tells California sole owners that the license number is not transferable and cannot be included in the sale of the business.

Several states treat a change in owners or form as a new licensee. Virginia voids the license when the business entity is dissolved or altered and gives the firm 30 days to apply again (18VAC50-22-210). Alabama, Georgia and Mississippi require a new application when a company changes form, for example from LLC to corporation. Arizona requires immediate notice when 25% or more of a licensed company's stock changes hands (A.R.S. 32-1151.01).

West Virginia is the only coded state with a transfer clause, and it is narrow: a license holder may move the license to a new business entity in which the holder is the principal owner, partner or officer (W. Va. Code 30-42-7(b)). An outside buyer cannot use it.

Small contractor office with rolled blueprints and a hard hat on a shelf
Illustrative photograph. Generated image, not a specific project.

A company has between 0 and 120 days to replace a qualifier who leaves

18 states set a numeric window. The median is 60 days and the most common is 90. 4 states also restrict new work while the company searches.

Days allowed to replace a departing qualifier

18 states with a stated window, main contractor license, law as read 2026-10-31

Days allowed to replace a departing qualifierBar chart of qualifier replacement windows: Georgia 120 days; California, Hawaii, Mississippi, North Carolina, Ohio, South Carolina and Tennessee 90; six states 60; Arkansas and Nevada 30; Oregon 14; Michigan 0.daysGeorgia120California90.0Hawaii90.0Mississippi90.0North Carolina90.0Ohio90.0South Carolina90.0Tennessee90.0Alabama60.0Arizona60.0Florida60.0Louisiana60.0Utah60.0Virginia60.0Arkansas30.0Nevada30.0Oregon14.0Michigan0

Source: SMBB coding of state statutes, rules and board forms (see table 1)

Days allowed to replace a departing qualifier, ranked (18 states with a stated window) Download CSV
RankStateDays to replace qualifierDays to notify boardWork during the windowCitation
1Georgia12045 days (company)Not restricted in the text readGa. Comp. R. & Regs. 553-11-.01(1)(c); 553-11-.02(1)(b)
2California9090 daysNot restricted in the text readCal. Bus. & Prof. Code 7068, 7068.1, 7068.2 (as applied by CSLB)
3Hawaii9060 daysMay operate but not bid on or enter new contracts until the board decidesHaw. Admin. R. 16-77-64; 16-77-72; 16-77-73
4Mississippi90ImmediatelyNot restricted in the text read30 Miss. Admin. Code Pt. 802, R. 1.1(l), (n) (commercial rules, revised 2022)
5North Carolina90Not statedNo new bids or contracts during the 90 daysN.C. Gen. Stat. 87-10(b), (c1)
6Ohio90ImmediatelyNot restricted in the text readOhio Rev. Code 4740.07
7South Carolina9015 daysNot restricted in the text readS.C. Code 40-11-230; 40-11-240(D)
8Tennessee90Not stated in formNot restricted in the text readT.C.A. 62-6-115; Tenn. Comp. R. & Regs. 0680-01-.23 (as stated on the board's QA change form)
9Alabama6030 daysNot restricted in the text readAla. Admin. Code r. 230-X-1-.04; 230-X-1-.36
10Arizona6015 daysNot restricted in the text readA.R.S. 32-1101(A)(8); 32-1124(B), (G); 32-1127; 32-1127.01; 32-1151.01
11Florida60Not stated (must inform)No new contracting; temporary certificate only to finish incomplete contractsFla. Stat. 489.119(2), (3)(a), (6); 489.1195(3)
12Louisiana6030 daysMay bid, but may not begin new work in that trade until replacedLa. R.S. 37:2156(K); 37:2156.1(D); LAC 46:XXIX.109(D), (E); 46:XXIX.119
13Utah6010 daysNot restricted in the text readUtah Code 58-55-304(3) to (7) (superseded 2027-01-01 by 58-55-107 under 2026 H.B. 40)
14Virginia6060 days (qualified individual)Not restricted in the text read18VAC50-22-60; 18VAC50-22-210; 18VAC50-22-220
15Arkansas3015 business daysNot restricted in the text readArkansas Contractors Licensing Board, qualifier change form (rev. 01/2024)
16Nevada3010 daysNot restricted in the text readNRS 624.260(5); 624.285; 624.305
17Oregon14ImmediatelyNot restricted in the text readORS 701.091; 701.093; 701.114
18Michigan0Not statedNot restricted in the text readMCL 339.2405(1), (4)

Michigan is coded 0 because MCL 339.2405(4) suspends the license when the qualifying officer leaves, unless the department allows a reasonable time on request.

Source: [8][4][9][13][16][11][19] State Licensing Board for Residential and General Contractors; Contractors State License Board (CSLB); Contractors License Board (DCCA); State Board of Contractors (MSBOC); Licensing Board for General Contractors; Department of Licensing and Regulatory Affairs (LARA); Construction Contractors Board (CCB)

The window matters most when the seller is also the qualifier. If the seller leaves at closing, the buyer's clock starts that day. In Michigan the residential builder license is suspended when the qualifying officer leaves, unless the department allows a reasonable time on request (MCL 339.2405(4)). In Oregon a company must have a responsible managing individual at all times and may use a temporary one for up to 14 days (ORS 701.093).

Notice deadlines are shorter than replacement windows in most states. Nevada and Utah want notice within 10 days, Arizona and South Carolina within 15, Georgia within 45 for the company, and Hawaii within 60, with automatic forfeiture if the notice is late (Haw. Admin. R. 16-77-64).

Replacement window by state

Days a company has to replace a departing qualifier; blank = not coded, registration only, or no window stated

Replacement window by stateUS tile map showing 18 states with a qualifier replacement window, from 0 days in Michigan to 120 days in Georgia, with 90 days common across the Southeast and California.AKMEVTNHWAIDMTNDMNILWIMI: 0MI0NYRIMAOR: 14.0OR14.0NV: 30.0NV30.0WYSDIAINOH: 90.0OH90.0PANJCTCA: 90.0CA90.0UT: 60.0UT60.0CONEMOKYWVVA: 60.0VA60.0MDDEAZ: 60.0AZ60.0NMKSAR: 30.0AR30.0TN: 90.0TN90.0NC: 90.0NC90.0SC: 90.0SC90.0DCOKLA: 60.0LA60.0MS: 90.0MS90.0AL: 60.0AL60.0GA: 120GA120HI: 90.0HI90.0TXFL: 60.0FL60.0PR0 to 30.030.0 to 60.060.0 to 60.060.0 to 90.090.0 to 90.090.0 to 120days

Source: SMBB coding of state statutes, rules and board forms

One qualifier rarely covers two companies without shared ownership

8 states set a common ownership test before a qualifier may serve a second company, from 20% to 51%. That limits a seller who hopes to stay on as qualifier for the buyer while running another firm.

Ownership a qualifier needs before serving a second company

Common ownership threshold in the 8 states that state one

Ownership a qualifier needs before serving a second companyBar chart of common ownership thresholds: California 20%, Arizona, Minnesota and Nevada 25%, New Mexico 30%, Alabama and South Carolina 50%, Hawaii 51%.020.040.060.0percent20.0California25.0Arizona25.0Minnesota25.0Nevada30.0New Mexico50.0Alabama50.0SouthCarolina51.0Hawaii

Source: SMBB coding of state statutes and rules (see table 3)

Can one qualifier serve several companies? Rules in 22 qualifier states Download CSV
StateRule for one qualifier serving several companiesCommon ownership threshold (%)Maximum companies statedCitation
AlabamaMultiple entities only if the qualifying party owns 50% or more of each50Ala. Admin. Code r. 230-X-1-.04; 230-X-1-.36
ArizonaOne additional licensee (two in total), only with 25% common ownership or a 25%-owned subsidiary252A.R.S. 32-1101(A)(8); 32-1124(B), (G); 32-1127; 32-1127.01; 32-1151.01
ArkansasNot stated on the formArkansas Contractors Licensing Board, qualifier change form (rev. 01/2024)
CaliforniaUp to 3 firms in any one-year period, and only with 20% common ownership, a subsidiary or joint venture, or the same majority of officers203Cal. Bus. & Prof. Code 7068, 7068.1, 7068.2 (as applied by CSLB)
FloridaAdditional organizations only with board approval and evidence of ability to supervise each one (discretionary)Fla. Stat. 489.119(2), (3)(a), (6); 489.1195(3)
GeorgiaA person may serve as qualifying agent for more than one company; a new qualifying agent application is needed for each additional company (board FAQ)Ga. Comp. R. & Regs. 553-11-.01(1)(c); 553-11-.02(1)(b)
HawaiiMore than one entity only with 51% common ownership, a subsidiary or joint venture, or a direct family relationship, and board approval51Haw. Admin. R. 16-77-64; 16-77-72; 16-77-73
LouisianaA qualifying party may also qualify any subsidiary of a licenseeLa. R.S. 37:2156(K); 37:2156.1(D); LAC 46:XXIX.109(D), (E); 46:XXIX.119
MichiganNot limited in 339.2405; qualifying officer must also hold an individual licenseMCL 339.2405(1), (4)
MinnesotaMore than one corporation or LLC only with at least 25% common ownership among them25Minn. Stat. 326B.802 subd. 10; 326B.805 subd. 4, 5(b); 326B.83 subd. 2(14)
MississippiNot limited in the rule; qualifier must be regularly employed by the certificate holder30 Miss. Admin. Code Pt. 802, R. 1.1(l), (n) (commercial rules, revised 2022)
NevadaOne active license only, unless one person owns at least 25% of each licensee or one licensee owns at least 25% of the other25NRS 624.260(5); 624.285; 624.305
New MexicoNo individual may qualify more than one licensed entity, other than a joint venture, unless there is at least 30% common ownership3014.6.3.8(A)(3)(c), (A)(5), (E) NMAC
North CarolinaNot limited in G.S. 87-10N.C. Gen. Stat. 87-10(b), (c1)
OhioAn assigned license may serve only one contracting company at a time1Ohio Rev. Code 4740.07
OregonNot limited in ORS 701ORS 701.091; 701.093; 701.114
South CarolinaOne licensee only; two entities only if both operate from the same location and the qualifier owns at least 50% of one and works daily in both502S.C. Code 40-11-230; 40-11-240(D)
TennesseeA QA listed on another license who is not an owner cannot be added; QAs on several licenses need board approvalT.C.A. 62-6-115; Tenn. Comp. R. & Regs. 0680-01-.23 (as stated on the board's QA change form)
UtahNot limited in 58-55-304Utah Code 58-55-304(3) to (7) (superseded 2027-01-01 by 58-55-107 under 2026 H.B. 40)
VirginiaNo numeric cap; designated employee and qualified individual must be a full-time employee or member of responsible management of the firm18VAC50-22-60; 18VAC50-22-210; 18VAC50-22-220
West VirginiaA license holder may hold a license on behalf of only one business entity at a time (transfer clause)W. Va. Code 30-42-7(b)
WisconsinNot statedWis. Stat. 101.654(1); Wis. Admin. Code SPS 305.31(1), (3); SPS 305.315

Thresholds are the common ownership a qualifier needs before serving a second company.

Source: [4][2][14][20][9][1][15][12] Contractors State License Board (CSLB); Registrar of Contractors (ROC); State Contractors Board; Contractor's Licensing Board (LLR); Contractors License Board (DCCA); Licensing Board for General Contractors; Construction Industries Division (CID); Department of Labor and Industry

Arizona allows one additional licensee, for 2 in total, and only with 25% common ownership (A.R.S. 32-1127). California allows up to 3 firms in any one-year period and only with 20% common ownership, a subsidiary or joint venture, or the same majority of officers (B&P 7068.1). South Carolina allows 2 entities only if both work from the same location and the qualifier owns at least 50% of one. Ohio lets an assigned trade license serve one contracting company at a time.

Florida leaves additional organizations to board discretion after the qualifier shows the ability to supervise each one (Fla. Stat. 489.119(6)). Georgia's board FAQ says a person may qualify more than one company, with a new application for each.

Half of US construction establishments are in states where the license rests on one person

The 22 qualifier states held 395,252 of 775,945 US employer establishments in construction of buildings and specialty trades in 2023, or 50.9%.

Where US construction establishments sit, by qualifier rule

Employer establishments in NAICS 236 and 238, 2023

Where US construction establishments sit, by qualifier ruleBar chart: 175,359 establishments in states allowing 60 days or less, 181,916 in states allowing 90 to 120 days, 37,977 in qualifier states with no stated window, 39,246 in registration states and 341,447 in states not coded.0100,000200,000300,000400,000establishments175,35960 days or less181,91690 to 120 days37,977Qualifier, nowindow stated39,246Registration, noqualifier341,447States not coded

Source: U.S. Census Bureau, County Business Patterns 2023; SMBB state coding

Construction establishments and firms in the coded states, by license model Download CSV
StateLicense held byDays to replace qualifierNAICS 236 establishments (CBP 2023)NAICS 238 establishments (CBP 2023)NAICS 236+238 establishments (CBP 2023)NAICS 236+238 employer firms (SUSB 2022)
CaliforniaEntity, through a named qualifier9029852538348368680917
FloridaBoth: entity license plus the qualifier's own certificate or license6019051462206527161722
North CarolinaEntity, through a named qualifier909306175422684825626
WashingtonEntity registration, no qualifier9869164122628125876
GeorgiaBoth: entity license plus the qualifier's own certificate or license1207075140952117020239
OhioIndividual, assigned to one company905950144102036019813
MichiganBoth: entity license plus the qualifier's own certificate or license07031132232025419778
VirginiaEntity, through a named qualifier606882130571993919543
MinnesotaEntity, through a named qualifier5209114461665516466
ArizonaEntity, through a named qualifier604323105211484414021
OregonEntity, through a named qualifier14593483841431814138
WisconsinEntity, through a named qualifier3923101001402313716
UtahEntity, through a named qualifier60369688541255012226
TennesseeEntity, through a named qualifier90375182551200611283
South CarolinaBoth: entity license plus the qualifier's own certificate or license90332979691129810742
AlabamaEntity, through a named qualifier602492587183638004
LouisianaEntity, through a named qualifier602397572081177963
ConnecticutEntity registration, no qualifier2100574178417759
ArkansasEntity, through a named qualifier301720423059505639
NevadaEntity, through a named qualifier301662409157535529
New MexicoBoth: entity license plus the qualifier's own certificate or license1396293443304207
MississippiEntity, through a named qualifier901074268037543671
West VirginiaEntity, through a named qualifier1160180929692895
HawaiiEntity, through a named qualifier90997179727942773
North DakotaEntity registration, no qualifier750196627162642
DelawareEntity registration, no qualifier770163824082359

CBP 2023 counts employer establishments (locations); SUSB 2022 counts employer firms, and a firm active in several states is counted in each.

Source: [27][28] U.S. Census Bureau; U.S. Census Bureau

California (83,686 establishments) and Florida (65,271) together account for 148,957. States allowing 60 days or less held 175,359 establishments, or 22.6% of the US total. Qualifier states with no stated window (Minnesota, New Mexico, West Virginia, Wisconsin) held 37,977.

Counting by employer firms instead of locations gives a similar picture: summed state by state, Census Statistics of U.S. Businesses lists 380,911 employer firms in NAICS 236 and 238 in the 22 qualifier states in 2022. That sum counts a firm active in several states once in each.

Wood-framed house under construction with stacked lumber and a work van
Illustrative photograph. Generated image, not a specific project.

Utah and Louisiana rewrote their qualifier law in 2025 and 2026

Two enacted changes and three introduced bills touch qualifier or transfer rules between 2025 and 2027.

Changes to qualifier and transfer rules, 2023 to 2027 Download CSV
DateStateChangeStatusOfficial source
2027-01-01UtahH.B. 40 (2026 General Session) recodifies the Construction Trades Licensing Act; the qualifier rule moves to new 58-55-107(8) and keeps the 10-day notice and 60-day windowEnacted; takes effect 2027-01-01https://le.utah.gov/Session/2026/bills/enrolled/HB0040.pdf
2026ArizonaS.B. 1190 (2026 session) would add a rebuttable presumption that a new licensee sharing 2 or more listed traits with a disciplined contractor is its successorIntroduced; enactment not confirmedhttps://www.azleg.gov/legtext/57leg/2r/bills/sb1190p.htm
2026-01-21West VirginiaS.B. 553 would let a license holder transfer the license to an immediate family member, including within one year after death or incapacityIntroduced; enactment not confirmedhttps://www.wvlegislature.gov/bill_text_html/2026_SESSIONS/rs/bills/sb553%20intr.pdf
2026-01-27West VirginiaS.B. 616 would repeal the Contractor Licensing Act (30-42-1 to 30-42-20) and end the Contractor Licensing BoardIntroduced; enactment not confirmedhttps://www.wvlegislature.gov/bill_text_html/2026_SESSIONS/rs/bills/sb616%20intr.pdf
2025-08-01LouisianaAct 422 (S.B. 122) rewrote R.S. 37:2156.1; the 30-day notice and 60-day replacement sentence printed in the 2024 rule book no longer appears in the statute, while LAC 46:XXIX.109(E) keeps itEnacted; effective 2025-08-01https://www.legis.la.gov/Legis/ViewDocument.aspx?d=1428801
2025-01-01CaliforniaB&P 7068.1 (qualifier for more than one firm) amended by Stats. 2024, Ch. 485 (S.B. 1455); the 3-firm yearly cap and 20% common ownership test remain in the textEnacted; effective 2025-01-01https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=BPC&sectionNum=7068.1
2026-04-24GeorgiaBoard FAQ (archived April 2026) says a company has 180 days to complete open contracts after a qualifying agent leaves; board rule 553-11-.02 still says 120 days to apply for a new agentConflict between agency FAQ and rulehttps://rules.sos.ga.gov/gac/553-11
2023-05-19South Carolina2023 Act No. 69 amended 40-11-230: failing to report a qualifier's departure within 15 days now 'may result' in cancellation, instead of automatic cancellationEnacted; effective 2023-05-19https://www.scstatehouse.gov/code/t40c011.php

Introduced bills are listed with their status as shown on the official bill text; enactment was not confirmed.

Source: [31][32][35][36][37][38][20] Utah Legislature; Louisiana Legislature; Arizona Legislature; West Virginia Legislature; West Virginia Legislature; Georgia Secretary of State; Contractor's Licensing Board (LLR)

Utah's H.B. 40 rewrites the Construction Trades Licensing Act from 2027-01-01. The qualifier rule keeps its 10-day notice and 60-day window, and it keeps the exception that lets a firm with 10 clean years name an active employee at renewal, unless more than 50% of its ownership was transferred in that period. For a sale, that exception ends when control changes.

Louisiana's Act 422 of 2025 rewrote R.S. 37:2156.1. The board rule still requires notice within 30 days and a new qualifying party within 60 days, and lets the licensee keep bidding but not begin new work in the trade until replaced (LAC 46:XXIX.109).

The 26-state registry, with citations

Each row rests on the statute, rule or board form saved on 2026-10-31, with a confidence flag.

Contractor license qualifier rules by state: who holds the license, transfer, replacement window (26 states) Download CSV
StateBoardLicense codedLicense held byCan the license pass to a buyerOwnership or entity changeDays to replace a departing qualifierReplacement ruleOne qualifier, several companiesCitationOfficial URLDate checkedConfidenceConstruction establishments, NAICS 236+238 (CBP 2023)
AlabamaLicensing Board for General ContractorsGeneral contractor licenseEntity, through a named qualifierNot stated; buyer's entity must be qualifiedA change in form of operation (individual, partnership, LLC, corporation) requires a new license; a new LLC must file for a new license60Licensee notifies within 30 days; another party must qualify within 60 days or face citation, suspension or revocationMultiple entities only if the qualifying party owns 50% or more of eachAla. Admin. Code r. 230-X-1-.04; 230-X-1-.36https://admincode.legislature.state.al.us/api/chapter/230-X-12026-10-31clear text8363
ArizonaRegistrar of Contractors (ROC)Contractor license (commercial, residential, dual)Entity, through a named qualifierNo: text says the license is not transferableLicensed company must immediately notify the registrar of any transfer of 25% or more of its stock or beneficial interest; adding or removing a partner can suspend the license60Notify within 15 days; requalify through another person within 60 days or the license is suspended by operation of lawOne additional licensee (two in total), only with 25% common ownership or a 25%-owned subsidiaryA.R.S. 32-1101(A)(8); 32-1124(B), (G); 32-1127; 32-1127.01; 32-1151.01https://www.azleg.gov/ars/32/01127-01.htm2026-10-31clear text14844
ArkansasContractors Licensing Board (Department of Labor and Licensing)Commercial contractor licenseEntity, through a named qualifierNot stated; buyer's entity must be qualifiedUpdated list of owners, officers and members filed with each qualifier change30Notify within 15 business days; another party qualified within 30 days or the license becomes invalid unless a written request for more time is receivedNot stated on the formArkansas Contractors Licensing Board, qualifier change form (rev. 01/2024)https://labor.arkansas.gov/wp-content/uploads/Qualifer-Change-Form-01_01_24.pdf2026-10-31interpretation needed5950
CaliforniaContractors State License Board (CSLB)Contractor license (A, B and specialty classes)Entity, through a named qualifierNo: text says the license is not transferableCorporate officers can change without affecting the license; a general partnership license is cancelled when the partnership changes9090 days after disassociation; one 90-day extension; license suspended or class removed if not replacedUp to 3 firms in any one-year period, and only with 20% common ownership, a subsidiary or joint venture, or the same majority of officersCal. Bus. & Prof. Code 7068, 7068.1, 7068.2 (as applied by CSLB)https://www.cslb.ca.gov/Contractors/Maintain_License/Change_In_Personnel.aspx2026-10-31clear text83686
ConnecticutDepartment of Consumer ProtectionHome improvement contractor registrationEntity registration, no qualifierNo: text says the license is not transferableCertificate may stay with the holder when only the business name or entity type changesNo qualifier requirementNot applicableConn. Gen. Stat. 20-427(e)https://prdext3.cga.ct.gov/2026/sup/chap_400.htm2026-10-31clear text7841
DelawareDepartment of LaborContractor registration (Delaware Contractor Registration Act)Entity registration, no qualifierNo: text says the license is not transferableNot addressedNo qualifier requirementNot applicable19 Del. C. 3606(b)https://delcode.delaware.gov/title19/c036/index.html2026-10-31clear text2408
FloridaConstruction Industry Licensing Board (CILB)Certified or registered general, building or residential contractorBoth: entity license plus the qualifier's own certificate or licenseNot stated; buyer's entity must be qualifiedNot addressed in 489.119; the business organization must be qualified by a certified or registered qualifying agent6060 days from the qualifier's termination when he or she was the only qualifier; no new contracting until replaced, except a temporary certificate to finish incomplete contractsAdditional organizations only with board approval and evidence of ability to supervise each one (discretionary)Fla. Stat. 489.119(2), (3)(a), (6); 489.1195(3)http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0400-0499/0489/Sections/0489.119.html2026-10-31clear text65271
GeorgiaState Licensing Board for Residential and General ContractorsResidential or general contractor license (business organization qualified by a qualifying agent)Both: entity license plus the qualifier's own certificate or licenseNot stated; buyer's entity must be qualifiedA change in the structure of the business organization (for example Inc. to LLC) is not a name change and needs a new application120Owner or officer notifies within 45 days; a company whose only qualifying agent left has 120 days from disaffiliation to apply for another, then goes inactiveA person may serve as qualifying agent for more than one company; a new qualifying agent application is needed for each additional company (board FAQ)Ga. Comp. R. & Regs. 553-11-.01(1)(c); 553-11-.02(1)(b)https://rules.sos.ga.gov/gac/553-112026-10-31interpretation needed21170
HawaiiContractors License Board (DCCA)Contractor license (A general engineering, B general building, C specialty)Entity, through a named qualifierNo: text says the license is not transferableNot addressed in the sections read90Notify within 60 days (or the license is forfeited); apply to qualify a new RME or go inactive within 90 days; may keep operating but not bid or sign new contracts until the board decidesMore than one entity only with 51% common ownership, a subsidiary or joint venture, or a direct family relationship, and board approvalHaw. Admin. R. 16-77-64; 16-77-72; 16-77-73https://cca.hawaii.gov/wp-content/uploads/2026/02/har_77-c2.pdf2026-10-31clear text2794
LouisianaState Licensing Board for Contractors (LSLBC)Commercial, residential or home improvement licenseEntity, through a named qualifierNo: text says the license is not transferableA subsidiary's application is treated as a new application60Notify within 30 days; qualify a new person within 60 days or the license may be suspended, revoked or lose the classification. Licensee may continue existing work and bid, but may not begin new work in that trade until replacedA qualifying party may also qualify any subsidiary of a licenseeLa. R.S. 37:2156(K); 37:2156.1(D); LAC 46:XXIX.109(D), (E); 46:XXIX.119https://legis.la.gov/legis/LawPrint.aspx?d=935742026-10-31clear text8117
MichiganDepartment of Licensing and Regulatory Affairs (LARA)Residential builder licenseBoth: entity license plus the qualifier's own certificate or licenseNot stated; buyer's entity must be qualifiedNot addressed in 339.24050License is suspended when the qualifying officer ceases to serve; on request the department may allow a reasonable time to qualify a new oneNot limited in 339.2405; qualifying officer must also hold an individual licenseMCL 339.2405(1), (4)https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-339-24052026-10-31clear text20254
MinnesotaDepartment of Labor and IndustryResidential building contractor or remodeler licenseEntity, through a named qualifierNot stated; buyer's entity must be qualifiedLicensee must notify the commissioner within 15 days of any change in control, ownership, officers or qualifying person15-day notice of a change of qualifying person; no replacement grace period stated in 326B.805More than one corporation or LLC only with at least 25% common ownership among themMinn. Stat. 326B.802 subd. 10; 326B.805 subd. 4, 5(b); 326B.83 subd. 2(14)https://www.revisor.mn.gov/statutes/cite/326B.8052026-10-31interpretation needed16655
MississippiState Board of Contractors (MSBOC)Commercial certificate of responsibilityEntity, through a named qualifierNot stated; buyer's entity must be qualifiedA change in entity type (sole proprietor to LLC, LLC to Inc.) requires a new application90Qualifier and certificate holder must notify immediately; another party must qualify within 90 days or the certificate is subject to suspension or revocationNot limited in the rule; qualifier must be regularly employed by the certificate holder30 Miss. Admin. Code Pt. 802, R. 1.1(l), (n) (commercial rules, revised 2022)https://www.msboc.us/wp-content/uploads/2022/02/COMMERCIAL-LAWS-AND-RULES-REVISED-2022.pdf2026-10-31clear text3754
NevadaState Contractors BoardContractor license (A general engineering, B general building and specialty)Entity, through a named qualifierNo: text says the license is not transferableNot addressed in the sections read30Notify within 10 days; license stays in force no more than 30 days after cessation unless the board extends for good causeOne active license only, unless one person owns at least 25% of each licensee or one licensee owns at least 25% of the otherNRS 624.260(5); 624.285; 624.305https://www.leg.state.nv.us/NRS/NRS-624.html2026-10-31clear text5753
New MexicoConstruction Industries Division (CID)Contractor license (GB-2, GB-98 and other classifications)Both: entity license plus the qualifier's own certificate or licenseNo: text says the license is not transferableNot addressed in 14.6.3.8Licensee and qualifying party notify CID within 30 days of separation; no replacement grace period statedNo individual may qualify more than one licensed entity, other than a joint venture, unless there is at least 30% common ownership14.6.3.8(A)(3)(c), (A)(5), (E) NMAChttps://srca.nm.gov/parts/title14/14.006.0003.html2026-10-31clear text4330
North CarolinaLicensing Board for General ContractorsGeneral contractor (building, residential, highway, utilities, specialty)Entity, through a named qualifierNot stated; buyer's entity must be qualifiedNot addressed in G.S. 87-1090License stays valid 90 days after the qualifier leaves, but no new bids or contracts in that period; invalid after 90 daysNot limited in G.S. 87-10N.C. Gen. Stat. 87-10(b), (c1)https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/ByArticle/Chapter_87/Article_1.html2026-10-31clear text26848
North DakotaSecretary of State (contractor licensing)Contractor license (classes A to D)Entity registration, no qualifierNot stated; buyer's entity must be qualifiedA licensee may not change its name if the change is tied to a change in legal statusNo qualifier requirementNot applicableN.D. Cent. Code 43-07-04; 43-07-09.1https://ndlegis.gov/cencode/t43c07.pdf2026-10-31clear text2716
OhioOhio Construction Industry Licensing Board (OCILB)Commercial trade contractor license (HVAC, plumbing, electrical, hydronics, refrigeration); Ohio has no statewide general contractor licenseIndividual, assigned to one companyNo: text says the license is not transferableLicense is issued to the individual and assigned to one contracting company at a time90Assignment becomes invalid 90 calendar days after the license holder's death or change-of-company form, or earlier by agreement; notice is due immediatelyAn assigned license may serve only one contracting company at a timeOhio Rev. Code 4740.07https://codes.ohio.gov/ohio-revised-code/section-4740.072026-10-31clear text20360
OregonConstruction Contractors Board (CCB)Residential or commercial contractor licenseEntity, through a named qualifierNot stated; buyer's entity must be qualifiedImmediate notice of changes in owners, officers or the responsible managing individual; a partnership needs a new license when a partner departs14Must have a responsible managing individual at all times; a temporary RMI may serve for up to 14 days after notice while the board verifies the replacementNot limited in ORS 701ORS 701.091; 701.093; 701.114https://www.oregonlegislature.gov/bills_laws/ors/ors701.html2026-10-31clear text14318
South CarolinaContractor's Licensing Board (LLR)General or mechanical contractor license (license groups 1 to 5)Both: entity license plus the qualifier's own certificate or licenseNot stated; buyer's entity must be qualifiedChange of entity name, organizational status or FEIN must be reported within 15 days; otherwise the license is cancelled and the new entity must apply as new90Notify within 15 days; license stays in good standing 90 days from the department's receipt of notice, then suspended until a new primary qualifying party is designatedOne licensee only; two entities only if both operate from the same location and the qualifier owns at least 50% of one and works daily in bothS.C. Code 40-11-230; 40-11-240(D)https://www.scstatehouse.gov/code/t40c011.php2026-10-31clear text11298
TennesseeBoard for Licensing ContractorsContractor license (BC-A residential, BC-B commercial and other classifications)Entity, through a named qualifierNot stated; buyer's entity must be qualifiedNot addressed in the forms read90New qualifying agent must be designated within three months (board form: 'Must replace QA within 90 days') or the classification is invalidA QA listed on another license who is not an owner cannot be added; QAs on several licenses need board approvalT.C.A. 62-6-115; Tenn. Comp. R. & Regs. 0680-01-.23 (as stated on the board's QA change form)https://www.tn.gov/content/dam/tn/commerce/documents/regboards/contractors/forms/ContBLC-QAAddChangeRequest.pdf2026-10-31interpretation needed12006
UtahDivision of Professional Licensing (DOPL)Contractor license (general building, residential and specialty)Entity, through a named qualifierNot stated; buyer's entity must be qualifiedA firm with 10 clean years may name an active employee instead of a qualifier at renewal, but not if more than 50% of ownership was transferred in that period60Notify within 10 days; license stays in force 60 days after the qualifier leaves, then automatic suspensionNot limited in 58-55-304Utah Code 58-55-304(3) to (7) (superseded 2027-01-01 by 58-55-107 under 2026 H.B. 40)https://le.utah.gov/xcode/Title58/Chapter55/C58-55-S304_1800010118000101.html2026-10-31clear text12550
VirginiaBoard for Contractors (DPOR)Class A, B or C contractor licenseEntity, through a named qualifierNo: text says the license is not transferableLicense is void when the business entity is dissolved or altered to form a new entity; new license application due within 30 days. Changes in corporate principals reported within 120 days60Change of qualified individual reported on a board form within 60 days; change of designated employee within 120 daysNo numeric cap; designated employee and qualified individual must be a full-time employee or member of responsible management of the firm18VAC50-22-60; 18VAC50-22-210; 18VAC50-22-220https://law.lis.virginia.gov/admincode/title18/agency50/chapter22/section220/2026-10-31interpretation needed19939
WashingtonDepartment of Labor and IndustriesContractor registration (general or specialty)Entity registration, no qualifierNo: text says the license is not transferableRegistration may not be transferred; a 'successor' using a prior registrant's assets under common ownership inherits unpaid judgments for denial purposesNo qualifier requirementNot applicableRCW 18.27.010(14); 18.27.020(2)(d); 18.27.030(3)https://app.leg.wa.gov/RCW/default.aspx?cite=18.27&full=true2026-10-31clear text26281
West VirginiaContractor Licensing Board (Division of Labor)Contractor license (general building, residential and other classes)Entity, through a named qualifierOnly to a new entity the license holder owns or runsA license holder may ask the board to transfer the license to a new business entity in which the holder is principal owner, partner or corporate officer; one entity at a timeBoard FAQ: notify the board of a new qualifier in writing with exam scores; no replacement window stated in the statute readA license holder may hold a license on behalf of only one business entity at a time (transfer clause)W. Va. Code 30-42-7(b)https://code.wvlegislature.gov/30-42-7/2026-10-31interpretation needed2969
WisconsinDepartment of Safety and Professional Services (DSPS)Dwelling contractor certification (one- and two-family dwelling permits)Entity, through a named qualifierNot stated; buyer's entity must be qualifiedApplicant must be the owner, a partner, or the board chair or chief executive of the contracting businessBusiness must hold or employ a certified dwelling contractor qualifier to pull permits; no replacement window statedNot statedWis. Stat. 101.654(1); Wis. Admin. Code SPS 305.31(1), (3); SPS 305.315https://docs.legis.wisconsin.gov/code/admin_code/sps/safety_and_buildings_and_environment/301_319/305.pdf2026-10-31clear text14023

Coded from the statute, rule or board form saved for each state on 2026-10-31. Blank days: no window stated in the text read.

Source: [4][7][2][14][16][8][27] Contractors State License Board (CSLB); Construction Industry Licensing Board (CILB); Registrar of Contractors (ROC); State Contractors Board; Licensing Board for General Contractors; State Licensing Board for Residential and General Contractors; U.S. Census Bureau

Confidence is clear text when the source states the rule directly, and interpretation needed when we coded from a board form, a reporting deadline or conflicting official sources. Rows for Georgia, Tennessee, Virginia, Minnesota, Arkansas and West Virginia carry that flag.

Texas, New York, Illinois, Colorado and Pennsylvania are not in the registry: we did not identify a statewide general contractor license there to code, and Pennsylvania's home improvement registration material we opened did not address transfer. Local licenses can carry their own qualifier rules. For how a sale moves through its stages, see how a business sale works, and for questions to raise with an intermediary, see questions to ask a broker.

Ratios behind the comparison

Construction establishments in qualifier states (signature figure)

Formulasum(CBP 2023 est, NAICS 236 + 238) over the 22 states where the license depends on a qualifier / sum over 50 states + DC

Inputs: derived d2, d13, d14; fact sheet CBP rows (fact sheet rows)

Result: 395,252 / 775,945 = 50.9%

About half of US building and specialty trade locations operate under a license that needs a named individual to stay valid.

Limitations: Covers only coded states; uncoded states may also use qualifiers. Establishments are locations, not firms, and not every establishment holds a state license.

Median and modal replacement window

Formulamedian and mode of replace_days across states with a numeric window

Inputs: registry rows (table 2), derived d7 (fact sheet rows)

Result: median 60 days; mode 90 days (7 states)

Sixty days is the middle of the range, but 90 days is the single most common rule.

Limitations: Michigan coded 0; Oregon coded 14 with a temporary manager; Virginia coded from a reporting deadline.

Establishment-weighted median window

Formulaweighted median of replace_days, weights = CBP 2023 establishments in NAICS 236 + 238

Inputs: table 2, table 4 (fact sheet rows)

Result: 90 days

The typical construction location sits in a 90-day state, mostly because of California.

Limitations: Excludes the 4 qualifier states without a stated window.

States that bar transfer or force a new license

Formulacount(text says not transferable) + count(text requires new license for a new or changed entity)

Inputs: derived d3, d4 (fact sheet rows)

Result: 11 + 5 = 16 states; 0 allow transfer to an unrelated buyer

Silence in the other states does not create a transfer right; the buyer's entity still needs its own qualifier.

Limitations: Coded from the sections read; a general nontransferability clause elsewhere in a code could be missed.

Establishments in short-window states

Formulasum(CBP 2023 est, NAICS 236 + 238) over states with replace_days <= 60, / US total

Inputs: derived d13, d16 (fact sheet rows)

Result: 175,359 = 22.6%

Roughly one in five US construction locations faces a replacement window of 60 days or less.

Limitations: Same coverage limits as d14.

Common ownership thresholds

Formulacount and range of stated ownership thresholds for multi-company qualifiers

Inputs: table 3 (fact sheet rows)

Result: 8 states; 20 to 51%

A seller cannot usually keep qualifying the sold company while qualifying a new one unless the two share owners.

Limitations: Louisiana, Tennessee and Florida use subsidiary, ownership or board-approval rules without a percentage.

Download the calculations (CSV)

Where the numbers diverge

  1. In 22 of 26 coded states (2026), a contractor license depends on an individual qualifier who must stay with the company.[4][7][16][2]
  2. In 11 coded states the statute, rule or board text says a contractor license or registration is not transferable, including California, Nevada, Arizona, Virginia and Louisiana (2026).[4][14][2][23][10]
  3. In 5 more states (Alabama, Georgia, Mississippi, Oregon, South Carolina) the text requires a new license or application when the business entity changes (2026).[1][8][13][19][20]
  4. The median window to replace a departing qualifier is 60 days across 18 states that set one; Georgia allows 120 days and Michigan suspends the license on departure (2026).[8][11][7]
  5. Ninety days is the most common window, used by 7 states: California, Hawaii, Mississippi, North Carolina, Ohio, South Carolina and Tennessee (2026).[4][9][13][16][18][20][21]
  6. California allows 90 days after a responsible managing officer or employee disassociates, plus one 90-day extension, before the license is suspended or the class removed (CSLB, 2026).[4][29]
  7. Florida gives a business organization 60 days to employ a new qualifying agent when its only qualifier leaves, and bars new contracting until then except to finish incomplete contracts (Fla. Stat. 489.119(3)(a)).[7]
  8. Nevada keeps a license in force no more than 30 days after the qualifying individual leaves, unless the board extends the time for good cause (NRS 624.285).[14]
  9. North Carolina keeps the license valid for 90 days after the qualifier leaves, but the company may not bid on or undertake new contracts in that period (G.S. 87-10(c1)).[16]
  10. Arizona requires notice within 15 days and requalification within 60 days, and a licensed company must notify the registrar of any transfer of 25% or more of its stock (A.R.S. 32-1127.01, 32-1151.01).[2]
  11. 8 states set a common ownership threshold for a qualifier serving a second company, from 20% (California) to 51% (Hawaii) (2026).[4][9][14][2]
  12. The 22 qualifier states held 395,252 of 775,945 US employer establishments in NAICS 236 and 238 in 2023, or 50.9%.[27]
  13. States allowing 60 days or less held 175,359 establishments (22.6% of the US total, 2023); states allowing 90 days or more held 181,916.[27]
  14. Weighted by establishments, the median replacement window is 90 days, because California's 83,686 establishments sit in a 90-day state (CBP 2023).[27][4]

Summary

  • In 22 of the 26 states coded, a contracting company keeps its license only while a named individual, the qualifier, stays with it; the other 4 states use a registration with no qualifier.
  • No coded state provides a way to move the license to an unrelated buyer's company. Text in 11 states says the license is not transferable, and 5 more require a new license or application when the business entity changes.
  • When a qualifier leaves, 18 states set a replacement window. The median is 60 days, the most common is 90 days (7 states), and the range runs from 0 days in Michigan to 120 days in Georgia.
  • 4 states allow 30 days or less: Michigan (0), Oregon (14 days with a temporary manager), Nevada (30) and Arkansas (30).
  • 4 states limit new work while the company looks for a replacement: Florida, North Carolina and Hawaii bar new contracts, and Louisiana bars starting new work in the trade.
  • 8 states let one qualifier serve a second company only with common ownership, from 20% in California to 51% in Hawaii; Arizona caps a qualifier at 2 licensees and California at 3 firms a year.
  • Signature figure: 395,252 of the 775,945 US employer establishments in NAICS 236 and 238 (50.9%) are in the 22 qualifier states coded here (Census CBP 2023).

Questions people ask

Can a contractor license be transferred to a new owner?

Not in any of the 26 states we coded, if the new owner is an unrelated buyer. 11 states say so in their text and 5 more require a new license when the entity changes. The license can stay with a company sold as a whole if its qualifier stays.

What is a qualifying agent?

The individual whose exam, experience and supervision qualify a company for a contractor license. Florida, Georgia and Tennessee use the term qualifying agent; California uses responsible managing officer or employee.

What happens if my qualifier leaves?

The company must notify the board and name a replacement within the state's window: 60 days at the median across 18 states, 90 days in California and North Carolina, 30 in Nevada, 0 in Michigan.

Can I buy a contracting business without a license?

A buyer can own the company, but the company needs a qualifier: either the buyer qualifies personally, an employee or officer who qualifies stays, or a new qualifier is hired within the state's window.

How many companies can one qualifier qualify?

Usually one. Arizona allows 2 with 25% common ownership; California allows up to 3 firms a year with 20% common ownership; Ohio allows one company per assigned license.

For journalists and researchers

If you cite only a few, cite these

  1. 0 of 26 states provide a way to move a contractor license to an unrelated buyer's company (SMBB registry, checked 2026-10-31).[4][14][2]
  2. Median qualifier replacement window: 60 days across 18 states (SMBB registry, 2026).[7][8]
  3. 50.9% of US construction establishments sit in qualifier states (Census CBP 2023; SMBB coding).[27]

Most quotable statistics

  • None of 26 states coded provides a way to move a contractor license to an unrelated buyer's company (SMBB, law as read 2026-10-31).[4][14][2][23]
  • The median time to replace a departing contractor license qualifier is 60 days; the range is 0 to 120 days (2026).[7][8][11]
  • 50.9% of US construction establishments are in states where the license depends on an individual qualifier (CBP 2023).[27]
  • Ninety days is the most common qualifier replacement window, used by 7 states (2026).[4][16][21]
  • 4 states, including Florida and North Carolina, bar new contracts while a company replaces its qualifier (2026).[7][16][9][10]
  • California lets one qualifier serve at most 3 firms in a year, and only with 20% common ownership (B&P 7068.1).[4][30]

Press summary

When the owner of a contracting company sells, the contractor license usually does not go with the sale. Sell My Business Broker read the licensing statute, board rule or board form in 26 states on October 31, 2026. None provides a way to move a license to an unrelated buyer's company. In 22 states the license depends on an individual qualifier, and if that person leaves, the company must replace them within a set window: 60 days at the median, 90 days in 7 states, 120 days in Georgia and 0 days in Michigan. 4 states restrict new contracts during the search. Matching the registry to Census County Business Patterns shows the 22 qualifier states hold 395,252 of 775,945 US construction establishments, or 50.9%. Utah and Louisiana rewrote their qualifier statutes in 2025 and 2026, and West Virginia lawmakers introduced bills in 2026 on license transfer and on repealing the state's contractor licensing act.

Suggested headlines

  • No state lets a buyer take over a contractor's license, a 26-state review finds
  • Contractors get a median 60 days to replace a departing license qualifier
  • Half of US construction establishments depend on one person's license
  • Georgia gives 120 days to replace a qualifier; Michigan gives none
  • Selling a contracting business? The qualifier clock starts at closing

How to cite this report

Sell My Business Broker. (2026). Contractor License Qualifier Rules: What Happens to the License When You Sell a Contracting Business (2026). Retrieved from https://sellmybusinessbroker.com/research/contractor-license-qualifier-rules/

Reuse license

Data and tables are licensed CC BY 4.0. Attribution: “Source: Sell My Business Broker, Contractor License Qualifier Rules: What Happens to the License When You Sell a Contracting Business (2026)” with a link to this page.

Download the data

Every table in this report is available as a CSV under CC BY 4.0. The fact sheet lists each value with its source URL and access date.

Frequently asked questions

Is a contractor license an asset I can sell?

No coded state provides a way to move a license to an unrelated buyer's company; 16 states bar transfer or require a new license in their text (2026).

Which state gives the longest time to replace a qualifier?

Georgia, with 120 days from disaffiliation to apply for a new qualifying agent under rule 553-11-.02.

Which state gives the shortest time?

Michigan suspends a residential builder license when the qualifying officer leaves, unless the department allows a reasonable time on request; Oregon allows a temporary manager for up to 14 days.

How long does California allow?

90 days after disassociation, with one 90-day extension available, before suspension or removal of the classification (CSLB).

How long does Florida allow?

60 days when the departing qualifying agent was the only qualifier; no new contracting until a new one is employed (Fla. Stat. 489.119(3)(a)).

Can the company keep working during the window?

Usually, but 4 states restrict new work: Florida, North Carolina and Hawaii bar new contracts and Louisiana bars starting new work in the trade.

Does a stock sale avoid the problem?

Only while the qualifier stays. Arizona still wants notice of a 25% stock transfer, and Virginia, Alabama, Georgia and Mississippi require a new license when the entity's form changes.

Can the seller stay on as qualifier after closing?

Yes, if the seller remains an employee or officer as the state defines it. Serving the buyer and another company at once usually needs 20% to 51% common ownership.

How many construction businesses are affected?

395,252 employer establishments in NAICS 236 and 238, or 50.9% of the US total, are in the 22 qualifier states coded (CBP 2023).

Do registration states have qualifier rules?

Connecticut, Delaware, North Dakota and Washington register businesses without a qualifier; Connecticut, Delaware and Washington still bar transferring the registration.

Reproduce this analysis

Every figure comes from the files below. The scripts that pulled and computed them are kept with the report and can be re-run.

DatasetPublisherSourceQuery or filterRows usedRetrieved
County Business Patterns 2023, state fileU.S. Census BureauFile or endpointnaics in ('236///', '238///') and lfo == '-'; fipstate in 50 states + DC (scripts/cbp_construction.py)51 state rows per code; 254,630 NAICS 236 and 521,315 NAICS 238 establishments2026-10-31
Statistics of U.S. Businesses 2022, state by 6-digit NAICSU.S. Census BureauFile or endpointNAICS in ('236', '238') and ENTRSIZE == '01' (scripts/susb_construction.py)51 state rows plus the US row per code2026-10-31
State contractor licensing statutes, rules and board formsState legislatures and licensing boards (see sources)File or endpointOne official source set per state, coded in scripts/registry_rows.py; files under raw/ listed per row26 state rows2026-10-31

Data quality and exclusions

  • CBP: kept 51 of 51 state rows for each of NAICS 236 and 238 with lfo '-'; legal-form breakdown rows dropped to avoid double counting; no suppressed establishment counts in the rows used.
  • SUSB: kept the enterprise-size total (ENTRSIZE 01) only; state firm counts are not additive across states, so the 380,911 sum is labeled as a by-state sum.
  • Registry: 6 further states were attempted but not coded (Alaska, Idaho, Illinois, Iowa, Massachusetts, Pennsylvania); reasons are in excluded.md.
  • Registry: 11 of 26 rows rely at least partly on an Internet Archive copy of the official page because the live page blocked automated access, refused the connection or timed out.
  • Registry: Tennessee and Arkansas rows rest on the boards' own forms, not on rule text; both are flagged interpretation needed.
  • Discarded fetched files that were off target or blocked: Louisiana LAC docx (HTTP 403), Tennessee rules PDF (HTTP 403), Arizona administrative code PDF (HTTP 403), and statute pages for Idaho, Iowa and Massachusetts that did not address transfer or qualifiers.

Methodology

Scope. One row per state for the general contractor license, or for the main building license where no general license exists (Michigan residential builder, Wisconsin dwelling contractor, Ohio commercial trade licenses). We coded 26 states with a statewide contractor license or registration, including the largest construction states that have one. Trade licenses such as electrical and plumbing were not coded except in Ohio.

Sources. Every row rests on the statute, administrative rule or board form opened and saved on 2026-10-31. Where an official page blocked automated access or timed out, we used an Internet Archive copy of that official page and labeled it in the table. Law firm and vendor pages were used only to find citations and as pages to beat, never as evidence for a row.

Coding. License held by: entity through a named qualifier; both (the qualifier also holds a board-issued certificate or license); individual; or registration with no qualifier. Can the license pass to a buyer: no when the text says it is not transferable; not stated otherwise; with a separate flag when the text requires a new license for a new or changed entity. Days to replace: the period the text allows before suspension, invalidity or inactivity. Confidence is clear text or interpretation needed.

Conflicts. Where an agency FAQ and a rule disagreed (Georgia), we coded the rule and noted the FAQ. Where the statute and rule differed after an amendment (Louisiana), we coded the rule in force and described the change.

Derived metrics. Census County Business Patterns 2023 (posted 2025-06-26, the latest year on www2.census.gov) supplies employer establishments in NAICS 236 and 238 with legal form 'all'. Statistics of U.S. Businesses 2022 supplies employer firms. Each derived figure is in derived_metrics.csv with its formula and is reproduced by scripts/build_data.py.

Recheck. The registry is checked quarterly and after each legislative session; next check January 2027, when Utah H.B. 40 takes effect. Last checked 2026-10-31.

Readers looking for a broker to handle a sale can use the broker match form; nothing in this report depends on it.

This report presents published data with its limitations. It is not legal, financial or investment advice.

Sources, ranked by quality

Tier 1: primary and official sources (39)

Tier 3: journalism and expert commentary (3)