How to Get a General Contractor License in Mississippi?

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In Mississippi, a general contractor license is provided by the Mississippi State Board of Contractors (MSBOC). The license is issued for residential and commercial project categories.

This article guides through the requirements and procedures to obtain a general contractor license in the state of Mississippi.

Who Needs a General Contractor License?

Not everyone requires a contractor license to undertake construction projects in Mississippi. A contractor’s license is not needed if the budget of the construction, electrical, plumbing, or HVAC work is less than $10,000. 

A general contractor requires the following licenses by the Mississippi state board of contracts:

• A commercial license for commercial projects over $50,000
• A commercial license for a commercial fire protection system works over $5000 for the public and $10,000 for private jobs
• A residential building license for residential works over $50,000
• A residential remodeling license for residential remodeling works over $10,000
• A residential roofing license for residential roofing works over $10,000

Some cities and towns in Mississippi require a local contractor license for small projects. This can be ensured by contacting the respective local municipal department to avoid hefty fines.

General Definitions

While filling the application, few important terms are encountered:

1. Qualifying part (QP): A QP is an individual who is responsible for taking the required exams. QP must be the owner, officer, or employee responsible for managing the project.
2. Classification: This term refers to the type of trade the applicant performs, such as building construction, heavy construction, highway street and bridgework, mechanical work, electrical work, municipal and public work construction.
3. Specialty classification: This is a division under major classification, where a contractor can get a license for special trade like drywall, roofing, or industrial piping.

How to Apply for General Contractor License in Mississippi?

The process for acquiring a general contractor license in Mississippi includes three primary steps:

1. Application process
2. Testing process
3. Board review and approval process

1. Application Process

The first step is to submit the contractor license application. There are five sections to be filled and submitted. For this, download the application form from the official website of the Mississippi State Board of Contractors, www.msboc.us, based on the type of project (commercial or residential). 

The respective forms provide all the instructions and requirements to be followed while filling the application form. Some of the essential documents to be submitted along with the application form are mentioned below:

1. The applicant (individual/entity) must provide three reference letters. One must be from a financial institution or a bank, and the other two must be from entities for whom the applicant has previously worked.
2. The applicant must list out all the completed and incomplete projects over the last three years.
3. The applicant must submit a financial statement prepared by a certified public accountant following AICPA standards, completed within 12 months.  The financial statement must reflect all the assets, net worth, and liabilities of the applicants. It also should demonstrate a net worth of $50,000.
4. The applicants must have a certificate of general liability insurance. MSBOC must be listed on the policy to be notified in the event of cancellation. There is no requirement for a minimum policy amount for residential license holders, but commercial applicants must provide a certificate of insurance evidencing current minimum coverage of $300,000 per occurrence and $600,000 aggregate.
5. If the applicant has more than five employees, a certificate of the workers’ compensation insurance coverage must be submitted along with the application.
6. If the applicant is a corporation, LLC, or LLP, a certificate showing proof of good standing with the Mississippi Secretary of State is required to complete the application process.
7. A sales tax number (STN) obtained from the Mississippi Department of Revenue is required to fill up the application.

Based on the classification of licensure offered by MSBOC, additional supporting documents have to be provided as mentioned in the application form. 

Once the application form is filled, mail it along with the required application fee and the supporting documents to MSBOC at P.O. 320279, Jackson, Mississippi 39232. The application fee is $400 for commercial applications and $50 for residential applications. MSBOC accepts checks or money orders made payable to MSBOC. The application, if not mailed within 180 days of downloading, will be rejected by the board.

2. Testing Process

After submission of the application, the next step is to take the licensing exam. The state requires all the applicants to pass Law and Business Management exam and respective trade exams.

Once MSBOC receives the application, they send the candidate information bulletin that gives all the information regarding the exams, registration, and scheduling details.  MSBOC sends the qualifier’s info to the testing company Psychological Services Inc. (PSI). After which, PSI contacts the qualifier and lets the applicant schedule the exam. These are open book examinations, and the books permitted are mentioned by PSI.

Some classifications do not require a trade exam based on the specialty classifications mentioned by MSBOC. But all applicants must attend and pass the Mississippi Law and Business Management exam. 

3. Board Review and Approval Process

Once the qualifier passes the exams, PSI notifies it to MSBOC. The board reviews the applications every week and takes about ten days to process and issue the license. The license is valid for one year and requires renewal each year.

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