Do you need a contractor license in Michigan?

When do you need a license?

$600 or more for a job means a license is needed.

Residential builders and maintenance & alteration contractors need a LARA license, unless the total price of the project is less than $600. (source: MCL 339.2403 (opens in a new tab), source: Michigan LARA: Helpful Information for Homeowners (opens in a new tab))

• The $600 exemption does not apply if the job is part of a larger operation or split into smaller contracts to avoid the law. (source: MCL 339.2403 (opens in a new tab))
• Licensed electrical contractors are exempt for electrical work. (source: MCL 339.2403 (opens in a new tab))

Penalties

• First offense: misdemeanor, $5,000 to $25,000 fine, up to 1 year in jail. Later offenses: up to 2 years. Causing death or serious injury: felony, up to 4 years. (source: MCL 339.601 (opens in a new tab))