“Which Virginia contractor license do I need?” Virginia licenses the business, not the person, and the license has two parts. The class (A, B or C) sets how big your jobs and your year can be. The classification or specialty sets what kind of work you may do. Here is how each part works, what each class takes, and the rules that come with the license.
Who needs a license
Va. Code §54.1-1100 defines a contractor as anyone who, for a fixed price, commission, fee or percentage, bids on, accepts or offers to accept contracts for the construction, removal, repair or improvement of a building or structure permanently attached to real property, owned by himself or another. §54.1-1103 says no one may engage in or offer contracting work without a license. Note the words “bid” and “offer”: bidding on a job counts, not just doing it.
The smallest class starts above $1,000: the board’s Statement of Consumer Protections says a project of more than $1,000 but less than $30,000 needs a Class C license. Value means fair market value, and the contract price is prima facie evidence of it (§54.1-1100). §54.1-1101 lists the exemptions, among them work on your own primary residence (one in any 24 months), government agencies working with their own forces, and suppliers who only advise on their products.
The three classes and their dollar limits
The definitions section was last amended by the 2025 General Assembly (Acts 2025, chapters 127 and 133), and the board’s Statement of Consumer Protections with the current numbers took effect July 1, 2025. Older guides may show earlier figures. Today’s, from §54.1-1100:
| Class | Single contract or project | All work in any 12 months |
|---|---|---|
| Class C | Over $1,000 but less than $30,000 | Less than $250,000 |
| Class B | $30,000 or more, but less than $150,000 | $250,000 or more, but less than $1 million |
| Class A | $150,000 or more | $1 million or more |
Both limits apply. The board’s application instructions say a Class C license is restricted to contracts under $30,000 “with the total amount of all contracts/projects performed in a twelve month period remaining below $250,000,” and a Class B to contracts under $150,000 with the 12-month total below $1 million. Class A has no monetary limit.
Say a remodeler holds a Class C license. A homeowner wants a $34,000 kitchen, so the single-contract limit is passed and the job needs Class B. Or say his first ten months already total $240,000 in small jobs; a $15,000 job now takes his 12-month total to $255,000, past the Class C line. Both are reasons to apply for Class B before signing, not after. §54.1-1115 makes contracting without a license, or “without the proper class of license” for the value of the work, a Class 1 misdemeanor, with a fine of up to $500 per day on top. A contract signed by an unlicensed contractor is not enforceable by that contractor unless he performed substantially in good faith and did not actually know a license was required.
What each class takes
| Requirement | Class C | Class B | Class A |
|---|---|---|---|
| Qualified individual’s experience in the classification or specialty | 1 year | 3 years | 5 years |
| Designated employee’s business exam | None | General and Virginia | General, Virginia and Advanced |
| Net worth or equity | None | $15,000, or a $50,000 surety bond | $45,000, or a $50,000 surety bond |
| Pre-license education | 6 hours | 6 hours | 6 hours |
| Application fee on the August 2026 form | $274.50 | $419.50 | $439.50 |
The qualified individual backs each classification or specialty with experience and an exam or trade license, and must be a full-time employee or part of responsible management. The designated employee, for Class A and B, passed the business exams. The pre-license course is a board-approved basic business course, and 18VAC50-22-300, in the version in effect since September 1, 2025, says such courses “must be six hours in length”; for Class C a member of responsible management takes it. The form notes that fees may be adjusted by the designations you choose, plus a $7.25-a-year Technology Fee under 2026’s House Bill 30.
Classifications and specialties: what you may do
The class sets the size; the classification or specialty sets the work. For home work, three matter most, all defined in 18VAC50-22-20 and -30:
Electrical (ELE), plumbing (PLB) and HVAC (HVA) firms are different: §54.1-1100 says the board requires a master tradesman license as a condition of licensure for them, so the firm’s qualified individual must be a master in the trade. Pick the classifications that cover all the work you sell; 18VAC50-22-260 lists “practicing in a classification, specialty service, or class of license for which the contractor is not licensed” as a prohibited act.
Tradesman licenses for the people
The firm’s license does not license the electrician holding the tools. The Board for Contractors also licenses individual tradesmen, journeyman and master, in electrical, plumbing, HVAC and gas fitting. Since April 1, 2025, the board’s Tradesmen page says, Residential HVAC Mechanic and Residential Plumbing licenses offer a path for work in residential structures only, with less experience and training than a journeyman license. Journeyman and master tradesmen must complete continuing education before each renewal: three hours for plumbing, electrical and HVAC, and one hour each for gas fitting, natural gas and liquefied petroleum gas.
Working under another contractor
§54.1-1101(A)(15) exempts a person doing construction, remodeling, repair, improvement, removal or demolition “valued at $25,000 or less per project on behalf of a properly licensed contractor” that holds the RBC, commercial building or HIC classification. Work that requires an individual license or certification must still be done by a licensed or certified individual. The general contractor carries the risk: 18VAC50-22-260 lists “contracting with an unlicensed or improperly licensed contractor or subcontractor” as a prohibited act, and §54.1-1115.01 makes a contractor who uses someone lacking a required credential solely responsible for any resulting penalty. Marking Up Subcontractor Work covers the rest of the paperwork with each sub.
Local licenses and permits
The state license is not the only one. The board’s instructions say a licensed business must also meet the local licensing requirements of every county, city and town where it works. Under §54.1-1111, a building official may not issue a permit, and a locality may not issue or renew a business license, unless you furnish your state license number or proof you are exempt. §54.1-1117 lets a locality adopt its own license for the business of home improvement or of building houses, but not for contractors who hold the state license; for a state-licensed firm, the local pieces are the business license and the permits.
The residential contract rules
18VAC50-22-260 makes it a prohibited act for a residential contractor (subcontractors and routine maintenance or service contracts excepted) not to use a legible written contract, signed by both sides before work starts or payment is accepted. The contract must include, among other items: start and estimated completion dates; the total cost, or for cost-plus the fee or percentage and a cap; the payment schedule and the down payment; the materials and work the consumer asked for; your name, address, license number, class and classifications; the cancellation rights; a statement that changes must be in writing and signed; a signed acknowledgment that the consumer received the board’s statement of protections; and notice of the Recovery Fund. Give the customer a fully signed copy before work starts, and keep all contract documents for five years.
On deposits, the Statement of Consumer Protections says the board recommends a down payment of about 10% of the contract, or about 30% when the job needs custom-made items. What a Home Improvement Contract Must Say and How Big a Deposit Can You Legally Ask For? cover the contract and deposit rules in other states.
The Contractor Transaction Recovery Fund
The fund pays eligible homeowners who lose money through a licensed contractor’s “improper or dishonest conduct” on their Virginia residence, which the statute limits to the wrongful taking of money or property through fraud, material misrepresentation, gross negligence, continued incompetence or intentional building code violations (§54.1-1118); it “does not include mere breach of contract.” The homeowner must first win a court judgment and try to collect it. Contractors pay for the fund: $25 at initial application, and if the balance falls below $400,000, an assessment at renewal of no more than $50 per two-year period (§54.1-1119). One claimant can recover at most $30,000 on a single transaction, and claims against one contractor are capped at $100,000 per two-year period (§54.1-1123). The board may weigh any amount you owe the fund when you later apply for a license (§54.1-1125).
Keeping the license
Licenses expire two years from the last day of the month they were issued (18VAC50-22-110). You may renew within 30 days after expiration, but “licenses are not valid during the 30-day grace period” (18VAC50-22-130), so work done in that window is work done unlicensed. Put the date on your calendar.
- Add up your largest likely job and your 12-month total, and pick the class that fits both with room to grow.
- List every kind of work you sell and match it to a classification or specialty.
- Line up your qualified individual, and for Class A or B your designated employee and the exams.
- Take the six-hour pre-license course and apply with DPOR.
- Get each local business license, and update your contract to the 18VAC50-22-260 list.
- Put your license number on your website and estimates; Answering “Are You Licensed and Insured?” shows how to answer the homeowner who looks it up.
Working across the Potomac too? See Contractor Licensing in Maryland and Working Across a State Line.
General information, not legal or tax advice. Rules change and vary by state; check with the agency named above or a professional for your situation.