The State of Arkansas holds reciprocal agreements for General Contractors licensed in the following states:
- Alabama
- Tennessee
- Mississippi
- Louisiana
Contractors who hold a license in one of the above states may easily obtain a license to work on construction projects in Arkansas.
Reciprocal License Classifications in Arkansas
A license is needed in the State of Arkansas when the cost of the project is $2,000 or more, including labor and materials. Licenses are issued by the Arkansas Contractor’s Licensing Board.
Contractors have the option of choosing from the following license types/classifications:
- Commercial Contractor License- allows contractors to work on projects of $20,000 or more. Contractors may work on commercial projects in the public and private sector, as well as residential projects within their classification. Classifications include:
- Heavy Construction
- Building
- Light Building
- Highway
- Municipal & Utility Construction
- Railroad & Airport Construction
- Mechanical
- Electrical
- Specialty
- Residential Builder License- allows contractors to build and construct single-family homes with up to 4 units.
- Residential Remodeler License- allows contractors to make structural changes and repairs to single-family homes with up to 4 units. The Board offers a limited and unlimited version of this license type. The limited version limits contractors to projects under $20,000.
*The Board also offers a Home Improvement Specialty License to contractors who want to perform specialty work on residential properties.
Out-of-state contractors, who want to work in Arkansas, must apply for one of the above license types/classifications from the Board and meet all the requirements.
Reciprocal Requirements in Arkansas
The Arkansas Contractor’s Board requires contractors to meet the following criteria for reciprocity:
- The contractor must be a resident and hold a valid, active license in a reciprocal state for at least 3 years.
- Contractors must complete and submit the Reciprocal Form and Reciprocal Affidavit. There is a portion of the Reciprocal Form that must be completed by the contractor’s home-state licensing board. For a copy of these forms, please visit: Contractors License Application Reciprocity Information
- All contractors must meet the Board’s financial requirement:
- Residential Builder and Residential Remodeler applicants must prove a positive net worth by submitting a compiled balance sheet financial statement.
- Commercial Contractor applicants must submit a CPA-prepared audited/reviewed financial statement showing a positive working capital and at least ½ of their net worth in cash in the bank. The net worth requirement for Commercial Contractors is between $5,000 and $50,000, depending on the classification the applicant chooses.
- All contractors must obtain worker’s compensation insurance if they plan to hire employees. Commercial Contractors are also required to post a surety bond in the amount of $10,000.
- Contractors must register their business with the Arkansas Secretary of State if they are operating under a name other than their legal name. All corporations, LLCs and LLPs, must also register with the Secretary of State.
- Contractors must complete and submit a license application to the Board along with all the required documents and fees. Copies of the applications are available through the Arkansas Contractors Licensing Board website. Follow the links for a Commercial, Residential Builder or Residential Remodeler application.
*The Board reserves the right at any time to request additional information from reciprocal applicants. The Board also reserves the right to investigate any information provided.
Reciprocity Exams in Arkansas
The Board requires all new applicants to take and pass the Arkansas Business and Law exam. The Business and Law exam is administered by Prometric Inc.
To determine if the examination is also required for reciprocal applicants, please contact the Board at:
501-372-4661
OR
Contact Prometric Inc. at:
888-763-0131
Further Information about Reciprocity in Arkansas
For more information about obtaining a reciprocal contractor license to work on construction projects in the State of Arkansas, contact the Arkansas Contractor’s Licensing Board:
501-372-4661
OR
Download the Reciprocity Information Form