Tennessee requires a contractor’s license before you bid, offer or negotiate a price on a roofing job of $25,000 or more, and roofing subs fall under the rule as well as roofers who sign with the property owner. The license comes from the Board for Licensing Contractors in the Department of Commerce and Insurance, and the board’s application fee is $250.
To get it, you pass an open-book Business and Law exam and show the board either a CPA-reviewed financial statement or a surety bond. That statement or bond sets the biggest job the license lets you bid.
Roofing subs need their own license at $25,000, even under a licensed GC
The threshold covers prime contractors, the ones who contract directly with the owner. Tennessee also names roofing among the subcontracted trades: a sub working for a contractor needs a license for roofing work of $25,000 or more, counting materials, equipment and labor. A roofing sub whose portion of a job reaches that number needs a license of his own, even when the general contractor holds one.
The requirement starts at the bid, before any work. If a roof you’re quoting comes near $25,000, get licensed before you send the number. The same board also licenses home improvement contractors under a separate license, so read that license’s page before you sign smaller residential jobs.
Every applicant takes the open-book Business and Law exam, out-of-state roofers included
Every Tennessee contractor applicant takes the Business and Law exam, and it’s open book. A trade exam comes on top only for classifications the board lists in its Classification Outline. The board’s published list of trade exams names no roofing exam, so check the outline for your classification before you pay for a trade exam you may not need.
From July 1, 2026, Prov replaced PSI as the board’s exam provider, and PSI ran only exams already booked, through September 2026. A guide or prep course that tells you to schedule with PSI is out of date. Exams are typically valid for two years, so file the rest of the application inside that window.
The person who takes the exams for the company is the Qualifying Agent. That can be an owner, a full-time employee or an officer, and a qualifier who owns no part of the company signs the board’s Power of Attorney form. Up to two people can take each exam for a company, and the person who takes Business and Law doesn’t have to be the one who takes a trade exam. For how other states handle qualifiers, see Roofing License Requirements by State, and How Qualifiers Work.
A prep course has to come from a provider the board licenses. As of October 2026 the board lists @Home Prep (Stautzenberger College), American Contractors Exam Services, Certified Training Institute, Contractor Training Center and RocketCert.
A license from another state doesn’t carry over. In the board’s words, “You cannot operate in Tennessee with a license from another state.” Active licensees from Alabama, Arkansas, Louisiana, Mississippi, North Carolina, Ohio, South Carolina and West Virginia can have a trade exam waived in listed categories, and the board accepts the NASCLA National Commercial exam. Waivers cover trade exams on the Contractor license only, so a storm roofer coming in from out of state still takes Business and Law. A Texas roofer has no state roofing license to bring, since Texas doesn’t issue one (RCAT runs a voluntary program).
Your finances set the biggest roof you can bid
Tennessee gives each license a monetary limit of 10 times the lesser of your working capital or your net worth. A $150,000 limit needs $15,000 in both.
The smaller number decides, so a high net worth won’t lift the limit when working capital is low: $10,000 in working capital caps it at $100,000. You can raise working capital on paper with the board’s Line of Credit form, which supplements the financial statement. An unlimited license needs $300,000 in both.
The limit applies to each project or contract, with no cap on how many projects you take, “so long as they are not split into phases to circumvent the law,” in the board’s words. The board allows a 10% tolerance on the limit, except on the BC-A/r restricted license.
The statement has to be “Reviewed” by a licensed independent CPA or LPA for limits up to $3,000,000, or “Audited” above that. It must be less than 12 months old and prepared under GAAP, the standard accounting rules. It also has to be in the exact name and form of business you’re licensing, so if the license goes to your LLC, the statement has to be in the LLC’s name.
A thin statement brings an extra requirement. If the books show cash and little equipment, or working capital that is mostly money customers owe you, the board asks for a guarantee. That means a Guaranty Agreement from the owners or a parent company, or a $500,000 bond ($1,000,000 for an unlimited license), and it expires at renewal.
Since July 1, 2026, a contractor can post a Contractors’ Surety Bond on the board’s form in place of the reviewed or audited statement.
The bond must equal at least 50% of the limit you request, so a $150,000 limit needs at least a $75,000 bond. Get a premium quote from a bond agent and compare it with a CPA’s fee for a review before you pick one. Roofing Contractor Bonds: Which States Require One and What It Costs covers bonds outside Tennessee.
Apply with a reference letter, insurance proof, state registrations and a notarized affidavit
Attach a Letter of Reference from a past client, a past employer or a code official who inspected your work. It can’t come from a family member, and the writer doesn’t have to live in Tennessee.
You’ll need general liability coverage sized to your monetary limit, plus workers’ compensation unless you show proof of exemption. Roofing Contractor Insurance: What Coverage a Roofing Company Needs and What It Costs goes through what those policies cost.
The company must be registered with the Tennessee Secretary of State. An out-of-state corporation registers as a foreign corporation with a Certificate of Authority, and a DBA has to appear in full on the certificate. You also need a business tax license from the Department of Revenue for each city or county where you operate.
The qualifier and every owner, partner, member, main officer and major stockholder sign a notarized Contractor’s Affidavit. The application is filed online at core.tn.gov.
Bidding $25,000 roofs before you’re licensed brings a board interview
An applicant with complaints or convictions, or who “previously bid where a license was required,” must interview with the board. The board describes these interviews as informal, and they usually run under 30 minutes. If you’ve already priced roofs of $25,000 or more without a license, plan for the interview and stop quoting jobs that size until the license is issued.
As of 2026, the board charges $250 to apply and $200 to renew
As of October 2026 the board charges $250 for a new license, a reinstatement or an ownership change, and $200 at renewal.
A late renewal adds $20 a month for up to 12 months. Changing your form of business, say from sole proprietor to LLC, costs $100. None of the board’s fees are refundable.
Budget separately for Prov’s exam fee and the CPA’s review, plus a prep course if you take one. None of those are part of the board’s fees.
Google’s Local Services Ads ask for the state license
Google’s Local Services Ads list a state business license and a state owner license for roofing “where applicable by local law.” One owner on r/smallbusiness said their Local Services account was suspended for a while because they didn’t submit new licensing in time. If you run those ads, upload the Tennessee license as soon as it’s issued and again after each renewal. Google Local Services Ads for Roofers: Budget, Cost per Lead and Disputes covers the rest of that account.
Eight steps before you bid a $25,000 roof in Tennessee
- Find your roofing classification in the Classification Outline and see whether it carries a trade exam.
- Book Business and Law through Prov.
- Name a qualifier. If he owns no part of the company, he signs the Power of Attorney form.
- Work out your limit: 10 times the lower of working capital and net worth.
- Get a CPA-reviewed statement under 12 months old in the company’s exact name, or price a surety bond at 50% of the limit you want.
- Line up the reference letter, liability and workers’ comp proof, Secretary of State registration, and a business tax license for each city or county.
- Apply at core.tn.gov with the $250 fee.
- Hold off on quoting roofs of $25,000 or more until the license is issued.
Once the license is issued, the next thing to check is whether homeowners near your office find you on Google when they search for a roofer. Run the free Google Maps heatmap: pick your Google profile and a search, and in a few minutes you’ll see your rank at 49 points around your office.