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If you want to get your license and start your own general contracting business, you must make sure you have all of your documents in order. Tennessee requires financial statements for all applicants, a letter of reference and proof of workers' compensation and general liability insurance.
By Lisa Guerin, J.D. For most types of projects you hire an independent contractor (IC) to do, the law does not require you to put anything in writing. You can meet with the IC, agree on the terms of your arrangement, and have an oral contract or agreement that is legally binding.
There isn't a requirement in Tennessee for sole proprietors to acquire a general business license, but depending on the nature of your business you may need other licenses and/or permits to operate in a compliant fashion.
Construction Managers of any kind must be licensed as a contractor if the total project exceeds $25,000. Joint Ventures: All contractors must be licensed to contract as a joint venture and may combine their monetary limit to bid a project.
State law exempts gross receipts from services provided by medical, dental, legal, and educational providers and certain services provided by nonprofit membership organizations. Services by religious and charitable organizations and veterinary services are also exempt from business tax.
Even if someone engages in work that would make them a contractor under Tennessee law, so long as the total cost of the work does not equal or exceed $25,000.00, they do not need to have a license (for masonry contractors that threshold jumps to $100,000.00).
A handyman in Tennessee is not required to hold a state license unless the job they are working on is worth more than $25,000. A home improvement license is required for remodeling jobs worth between $3,000 and $24,999. Licenses are awarded by the Department of Commerce and Insurance Board for Licensing Contractors.