Licenses and registrations
Residential Builder license
Building new single-family residences (one to four units) for a fixed price, fee or wage.
- When it applies: Residential jobs costing more than $2,000, including labor and materials. The statute exempts work where “the cost of the work done or to be done does not exceed two thousand dollars ($2,000)” (Ark. Code § 17-25-513), so a job of exactly $2,000 is exempt. The board’s application affidavit says “$2,000.00 or more”; the statute governs.
- Good to know: Requires the Arkansas Business and Law exam, four years of experience shown by references, and a compiled financial statement with positive net worth.
Residential Remodeler license - Limited
General remodeling of existing single-family residences, including structural changes, repairs and additions.
- When it applies: Over $2,000; Limited license can only do residential home improvement projects that are less than $50,000.
- Good to know: Business and Law exam and two years of experience. No financial statement required.
Residential Remodeler license - Unlimited
Remodeling existing single-family residences with no project size cap.
- When it applies: Over $2,000; residential home improvement projects of any size.
- Good to know: Adds a current compiled balance sheet showing positive net worth and workers' compensation proof if the business has employees.
Home Improvement Specialty license (Limited or Unlimited)
Specialty work on an existing single-family residence, such as painting and wallcovering, floors and floor covering, siding, soffit, fascia and gutters, and windows.
- When it applies: Projects over $2,000 in labor and materials. Limited: under $50,000; Unlimited: no size cap.
- Good to know: This license does not allow building or remodeling a home. Experience must be shown with references for each specialty. Unlimited requires a compiled financial statement.
Residential Roofing Registration
Residential roofing contractors.
- Good to know: Separate from the home improvement license. Requires a surety bond of at least $15,000. New and renewal registration fee is $20.
Commercial license
Commercial projects; any project that is not a single-family residence counts as commercial.
- When it applies: $50,000 or more, including labor and materials.
- Good to know: Business and law test required, plus a financial statement or bond in lieu.
What you need to qualify
- Exams: Residential builder and residential remodeler applicants must pass the Arkansas Business and Law exam (open book, 50 multiple-choice questions, 2-hour limit). The home improvement specialty application does not list an exam. For a business, the qualifying party takes the exam.
- Experience: Three reference forms (no older than 90 days). Residential builder: references showing four years of construction experience. Residential remodeler: two years. Home improvement specialty: proof of experience in each specialty requested.
- Insurance: Licensed contractors must carry workers' compensation as required by Arkansas law (generally if they have at least one employee). Home improvement contractors doing work under $50,000 generally need not secure or prove coverage. No general liability amount is stated in the law.
- Bond: Residential roofing registration requires a surety bond of at least $15,000. No bond is listed for builder, remodeler or home improvement licenses.
- Financial: Residential builders, unlimited remodelers and unlimited home improvement contractors must submit a current compiled balance sheet (less than one year old) showing positive net worth, excluding homestead and retirement accounts. Limited licenses do not require one.
- Also required: Sole proprietors may qualify for an initial fee waiver under the Workforce Expansion Act of 2021.
Fees, renewal and continuing education
- Fees: Residential builder: $100 filing fee. Residential remodeler and home improvement specialty: $50 filing fee. Business and Law exam: $84. Residential roofing registration: $20.
- Renewal: Annual; licenses expire one year after issuance. Renewal fees: residential builder $50 ($100 late); remodeler and specialty $25 ($50 late). A license may be renewed up to two years after it expires.
Contracts and homeowner protections
No written contract content rules were found in the residential contractor law. An unlicensed contractor cannot sue to enforce a contract made in violation of the law, including for quantum meruit. Splitting a job into separate contracts of less than $2,000 each to stay under the limit is not allowed (Ark. Code § 17-25-513). Homeowners acting as their own contractor on their own property are exempt.
Electrical, plumbing and HVAC work
Electrical: Board of Electrical Examiners, and HVAC/R: HVAC Licensing Board, both within the Arkansas Department of Labor and Licensing. Contractors licensed by another Arkansas agency are exempt from the residential contractor license for work within that license.
Working without a license
Failing to get a required license is a Class A misdemeanor, and each day is a separate offense. After notice and hearing, the board may also impose a civil penalty of $100 to $400 per day. Unlicensed contractors cannot enforce their contracts in court.
What to confirm with the state
We couldn't confirm these on an official page when we checked. Ask the licensing office before you rely on them:
- Which agency licenses plumbers (likely the Arkansas Department of Health).
- Continuing education requirements (none found in the law or applications we checked)
- General liability insurance requirements
- Business entity registration requirements
- Local (city/county) contractor licensing requirements
- Written contract content requirements
Sources
- Apply for Contractors License/Registration
- Arkansas Residential Contractors Licensing Law, Statutes and Rules (revised 04.2026)
- Residential Remodeler New Application (effective 02/2024)
- Home Improvement Specialty New Application (effective 1/2025)
- Residential Builders New Application (effective 1/2025)
- Renew A License
- Arkansas Department of Labor and Licensing - Licensing