Licensing and scope in Georgia
Georgia licenses contractors through the State Licensing Board for Residential and Commercial General Contractors (within the Secretary of State's Professional Licensing Boards Division), under O.C.G.A. Title 43, Chapter 41. A license is generally required to contract for residential or general construction work valued at more than $2,500 (the threshold in effect since July 1, 2008). The license is held by a qualifying agent tied to the business; you must work within the classification and any monetary limits you hold, pull the required permits, and pass the required inspections. Performing or advertising contracting work without the required license, or beyond your scope, is a violation: under O.C.G.A. § 43-41-17 a contract entered with an unlicensed contractor for work requiring a license is unenforceable by that contractor (no right to collect), and unlicensed contracting is a misdemeanor.
Know the licensing-law essentials the exam tests: who must be licensed and the dollar threshold that triggers it; classifications (general vs specialty/sub-classifications) and staying within yours; advertising rules (showing your license number on contracts, ads, and vehicles); prohibited acts (abandonment without legal excuse, willful departure from approved plans, willful or fraudulent code violations, diversion of funds from one job to another, aiding unlicensed activity, and fraud or misrepresentation); the complaint and disciplinary process the board can bring (investigation, citations, administrative fines, probation, suspension, or revocation, and restitution to the consumer); and renewal/continuing-education requirements.
The qualifying agent. In Georgia the person who passed the exams and holds the experience is the qualifying agent for the company; if they leave, the company has a limited time to replace them or the license lapses. A qualifying agent may not improperly "rent" their license to a company they do not actively manage — a serious violation. Know the difference between the license (the company's authority to contract) and the qualifying agent (the responsible person), and that the board can discipline both.
How Georgia licensing works
- Experience and exams: documented experience plus passing both the trade and business-and-law exams; the passing score is 70 percent on each. Confirm the current question counts and time limits with the board and vendor.
- Financial responsibility: proof of net worth — a minimum of $150,000 for a full General Contractor and $25,000 for the General Contractor Limited Tier (contracts capped at $1,000,000). Residential-Basic and Residential-Light Commercial applicants may instead satisfy the financial-responsibility rule with a $25,000 surety bond, a letter/line of credit, or a 24-month bank credit reference. Also required: general-liability insurance of not less than $500,000 (General and Residential-Light Commercial) or $300,000 (Residential-Basic), and workers' compensation when you regularly employ 3 or more in Georgia. Note: the state board does not impose a blanket contractor surety bond — though some local jurisdictions require one for permits.
- Entity documents: registration of the business entity, an EIN, and any local business licenses.
- Exam vendor: PSI administers both the Business & Law and trade exams.
- Renewal: licenses renew on a fixed two-year cycle (fees due by June 30 of each even-numbered year) and require keeping insurance current. Continuing education is required only of Residential licensees (Residential-Basic 3 hours/year; Residential-Light Commercial 6 hours/year, reported through CE Broker) — General (commercial) Contractors are not required to complete CE. Confirm the current rules with the board.
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