How to Obtain a General Contractor’s License in North Carolina Using Reciprocity from Tennessee or South Carolina

If you're already licensed as a Residential or Commercial General Contractor in Tennessee or South Carolina and wish to work in North Carolina, you can take advantage of the reciprocity agreements between these states. This allows you to bypass some of the rigorous requirements that first-time applicants would need to meet. In this blog post, we'll walk you through the process step-by-step, explaining everything you need to know to obtain your general contractor's license in North Carolina through reciprocity.

What is Reciprocity?

Reciprocity is an agreement between states that simplifies the licensing process for contractors who are already licensed in one state and want to obtain a license in another. North Carolina has reciprocity agreements with Tennessee and South Carolina, which means that if you hold a valid general contractor’s license in either of these states, you won’t need to undergo the full licensing process, such as passing the North Carolina state exam. However, certain conditions must still be met.

Step-by-Step Guide to Obtaining a General Contractor’s License in North Carolina via Reciprocity

Step 1: Meet the Basic Eligibility Requirements

Before you begin the reciprocity process, you must ensure you meet the basic requirements for becoming a general contractor in North Carolina:

• You must be at least 18 years old.
• You need to have a valid general contractor’s license in good standing from Tennessee or South Carolina.
• Three Character letter References. 
• You should be able to provide financial documentation to demonstrate your financial responsibility.

Step 2: Determine the Type of License You Need

North Carolina offers several different classifications for general contractor licenses, and it’s important to apply for the one that aligns with the type of work you plan to do:

• Limited License: Allows you to work on projects up to $500,000.
• Intermediate License: Allows you to work on projects up to $1,000,000.
• Unlimited License: No limit on the cost of the projects you can undertake.

Your license from Tennessee or South Carolina should align with one of these classifications. The North Carolina Licensing Board for General Contractors (NCLBGC) will help you verify this during your application process.

Step 3: Submit the Reciprocity Application

To apply for a general contractor’s license in North Carolina using reciprocity, you'll need to submit the following:

• Reciprocity Application Form: This form is available on the North Carolina Licensing Board for General Contractors (NCLBGC) website. You’ll need to complete it accurately and thoroughly.
• Proof of License: You will need to provide proof of your valid general contractor’s license from Tennessee or South Carolina. The NCLBGC will verify your license status with the appropriate board in your home state.
• Financial Statement: You’ll need to submit a financial statement demonstrating your business's financial responsibility. For licenses with higher monetary limits (Intermediate or Unlimited), a CPA must prepare this financial statement.
• Application Fee: The fee for applying is typically around $100–$150, but make sure to confirm the exact amount on the NCLBGC website.

Step 4: Wait for License Board Review and Approval

Once your application has been submitted, the North Carolina Licensing Board for General Contractors will review your materials. They will:

• Verify your out-of-state license and its standing.
• Review your financial statement and any supporting documentation.

This review process can take a few weeks, so plan accordingly if you have upcoming projects in North Carolina. Once Approved you will receive your Candidate ID to take your Business Law Exam at PSI Exams.

Step 5: Take Your North Carolina Business and Law Exam

• Prepare, Study and Pass your North Carolina Business Law Exam.
• North Carolina Complete Business Law Prep Course Including Books

Frequently Asked Questions

1. Do I have to take the North Carolina state exam?

No. If you are applying through reciprocity and meet all the eligibility criteria, you do not need to take the North Carolina state trades exam.

2. How long does the application process take?

Typically, the application review process takes between 2 to 4 weeks. However, this timeframe can vary depending on the volume of applications the board is processing at any given time.

3. Can I apply for reciprocity from a state other than Tennessee or South Carolina?

Currently, North Carolina only has reciprocity agreements with Tennessee and South Carolina for general contractors. If you are licensed in another state, you will need to apply through the standard process, which includes passing the state exam.

Conclusion

Obtaining a general contractor's license in North Carolina through reciprocity from Tennessee or South Carolina is a straightforward process, provided you meet the eligibility criteria and submit all required documentation. This streamlined process allows experienced contractors to expand their business operations into North Carolina without undergoing the full licensing process.

Be sure to follow the steps outlined in this guide, and you'll be on your way to working legally as a licensed general contractor in North Carolina. For more information and to access the necessary forms, visit the North Carolina Licensing Board for General Contractors.