Michigan contractor license bond
No statewide bondMichigan has no state contractor license bond.
Michigan requires a Residential Builder license (administered by LARA) to build or remodel one- and two-family homes, but the Occupational Code that governs licensure imposes no surety bond and no statewide insurance mandate as a condition of the license, just 60 hours of education, an exam, and good moral character. Bonds are required only by individual cities and counties for local permits, so amounts vary. [Source: Michigan LARA ↗]
Good to know
There's no state bond for a Michigan builder license; bonds (often $5,000 to $25,000) are imposed locally by the city or county where you work.
If your city requires a bond, estimate the cost
You pay a percentage of the bond amount each year, based on credit.
About 1.5–3.0% of a $25,000 bond.
Estimate only. Your real rate is set by the surety after a quick credit check, and the premium is typically nonrefundable once the bond is issued.
How to get licensed in Michigan
- 1Michigan has no statewide contractor license, so start with the building department in the city or county where you'll work and ask what they require.
- 2Meet that jurisdiction's local license, bond, and insurance rules — amounts vary by city, so confirm them directly.
- 3If you do electrical, plumbing, or HVAC work, get the matching state trade license, which is issued separately.
- 4Keep your local registration and any trade licenses current as you renew.
Michigan contractor bond FAQ
Does Michigan require a contractor license bond?
No. Michigan licenses residential builders but doesn't require a state surety bond to get or keep the license; any bond is set by local municipalities.
How much does a contractor license bond cost in Michigan?
You don't pay the full bond amount. You pay an annual premium that's a small percentage of it, usually around 1–3% with good credit and more while your credit is still building. Use the calculator above to estimate the premium for your bond amount.
Who regulates contractor licensing in Michigan?
Michigan has no single statewide contractor licensing agency — general contractors are licensed by city and county building departments. There's no state bond for a Michigan builder license; bonds (often $5,000 to $25,000) are imposed locally by the city or county where you work.
What does a contractor license bond protect?
A contractor license bond protects your customers and the licensing authority, not you. It guarantees you'll follow the state's contractor laws; if you break them and someone is owed money, they can file a claim against the bond, and you must repay the surety.
Is the bond premium refundable?
Generally no. Once the bond is issued, the premium is earned by the surety and is typically nonrefundable, even if you never have a claim. Most bonds run one to two years, and you renew to keep your license active.
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Bond requirements and amounts are set by Michigan LARA and can change. Confirm the current figure with the authority before you buy. This page is general information, not legal advice.