How to Get a General Contractor License in Chicago: Classes A to E

A general contractor license in Chicago separates the pros from the unlicensed operators. If you're launching a construction or home improvement business in Chicago, you need to understand the licensing structure, costs, and process. This guide walks you through what it takes to get licensed under the Chicago Department of Buildings (DOB) system, which classifies contractors into five tiers based on project value.

Understanding Chicago General Contractor License Classes

Chicago doesn't have a single "general contractor license." Instead, it has five license classes (A, B, C, D, and E), each tied to maximum project values you're authorized to undertake. This classification system is governed by Chicago Municipal Code 4-36 and ensures that contractors are properly insured for the work they do.

Here's the breakdown of each class:

License Class	Maximum Project Value	Annual Fee (2026+)	Insurance Required (Per Occurrence)
Class A	Unlimited	$3,500	$5 million
Class B	Up to $20 million	$1,800	$3 million
Class C	Up to $10 million	$1,300	$2 million
Class D	Up to $4 million	$900	$2 million
Class E	Up to $500,000	$300	$1 million

These fees represent a significant increase from 2003 and have been updated as of January 6, 2026. Project limits for Classes B, C, and D were also doubled in this update. Starting in 2027, all fees will be adjusted annually for inflation (CPI-indexed).

Prerequisites: What You Need Before Applying

Before you start the application process, have these items ready:

• Proof of financial solvency: The application includes a statement of financial solvency in the format the City provides.
• General liability insurance: Coverage meeting your license class requirements (see table above). The commercial general liability policy must be issued by an insurer authorized in Illinois with an A.M. Best rating of B+ or higher.
• Business information: Legal business name, address, phone number, and business structure (sole proprietorship, LLC, corporation, etc.).
• Identification: Government-issued ID for the owner or authorized representative.
• Proof of authorization to do business in Illinois (not required for sole proprietors), and an Assumed Name Certificate from the County Clerk if you do business under an assumed name.
• Application fee: The annual fee for your license class, paid when you submit your application.

Note: A separate mason license is required if you perform masonry work. Do not assume a general contractor license covers all trades.

Step-by-Step: Getting Your Chicago General Contractor License

Step 1: Determine Your License Class

Decide which class of work you'll be performing. This depends on the maximum value of projects you plan to undertake. If you're starting out doing small residential repairs (under $500,000), you'd apply for a Class E license. If you plan to bid on larger commercial or multi-unit residential projects, you may need Class D or higher.

Why this matters: Applying for a class higher than you need means paying unnecessary fees. Applying for a class lower than your project scope is a violation and can result in fines, license suspension, or loss of the license entirely.

Step 2: Secure General Liability Insurance

Contact commercial insurance providers and request a quote for general liability coverage at the level required for your license class. For example, if applying for Class D, you need $2 million per occurrence coverage. You don't need to finalize the policy yet, but get a clear quote and confirmation that the coverage can be issued.

Insurance is non-negotiable. The Chicago DOB will not issue or renew a license without current coverage in place.

Step 3: Gather Financial Documentation

Compile proof of financial solvency. This can include:

• The statement of financial solvency (in the format that is part of the application)
• Any supporting financial records the statement asks you to reference

Confirm the current application package with Continental Testing Services before you submit.

Step 4: Complete the Application

The Chicago DOB application is handled through Continental Testing Services, which serves as the third-party administrator for Chicago contractor licenses. Application forms are on the Continental Testing Services website and must be submitted by mail. The application requires:

• Your legal business name and structure
• Owner and authorized representative names and contact information
• Proof of authorization to do business in Illinois (not required for sole proprietors) and any Assumed Name Certificate
• Government-issued photo ID for the owner or officers and anyone who signed the application
• Proof of insurance (certificate of insurance)
• Proof of financial solvency
• The appropriate application fee for your license class

No exam is required. The Chicago DOB does not administer a written or practical test for general contractor licenses. Approval is based on meeting the financial and insurance requirements for your chosen class.

Step 5: Submit Your Application to Continental Testing Services

Apply through Continental Testing Services, which processes applications on behalf of the Chicago DOB. Include all required documentation with your application. Incomplete applications will be returned, delaying your approval.

Confirm current processing times with Continental Testing Services. You'll be notified by mail or email once your license is approved.

Step 6: Receive Your License and Display It

Once approved, you'll receive your physical license document. Keep it available for your business records.

Keep a copy of your license and proof of insurance accessible. You may be asked to produce both by the city during inspections or if there's a complaint.

Annual Renewal and Ongoing Compliance

Your Chicago general contractor license must be renewed annually. Renewal forms are on the Continental Testing Services website and are submitted by mail. You'll need to renew your general liability insurance at the same time and submit proof with your renewal application.

Renewal fees are the same as the initial application fees ($3,500 for Class A, $1,800 for Class B, etc.). Failure to renew by the expiration date means you are no longer authorized to work as a licensed contractor in Chicago and face potential penalties.

Tips for a Smooth Application

• Apply early. Don't wait until you have a project lined up. Applications are processed by mail, and you need the license in hand before you can legally bid on work in Chicago.
• Double-check your class choice. If you later take on a project larger than your license allows, you'll need to upgrade to a higher class. Upgrading costs additional fees and takes time.
• Keep insurance current year-round. Let your policy lapse and your license becomes invalid immediately. Some contractors set up automatic renewal with their insurance agent to avoid this mistake.
• Use a clear business address. Use a reliable mailing address so City and Continental Testing Services correspondence reaches you.
• Respond promptly to DOB requests. If the department asks for additional information or clarification, submit it quickly. Delayed responses can push your approval back weeks.
• Consider a business entity. If you're forming a new business, an LLC or S-corp can simplify renewal and liability separation. Consult a business attorney before choosing your structure.

Common Mistakes to Avoid

• Applying for the wrong class. Taking a job that exceeds your license class is illegal. Fines can run into thousands, and your license can be suspended or revoked.
• Not updating insurance. If your general liability policy is canceled or lapses, your license is no longer valid. You cannot legally work.
• Forgetting the annual fee. The Chicago DOB will not renew your license without payment. If your license expires, reinstatement costs $100 per year or fraction of a year that it has been expired, on top of the fee.
• Ignoring the separate mason license requirement. If your crews perform masonry, you must have a separate mason license. A general contractor license does not cover this trade.
• Working without a license while waiting for approval. You cannot legally perform work in Chicago until your license is issued and you have received it. Using a friend's license or claiming you have an "application pending" is not acceptable.

What to Expect After You're Licensed

Once you hold a valid general contractor license, you can legally bid on and perform construction work up to the project value limit of your class in Chicago. You may be required to:

• Pull permits before starting work at city-regulated properties
• Comply with Chicago building code and safety standards
• Pass city inspections at various stages of the project
• Maintain your general liability insurance throughout the project
• Renew your license annually and pay the renewal fee

Confirm current processing times with Continental Testing Services once you have all your documentation ready. Plan accordingly if you're targeting a project start date.

Related Licensing: Separate Mason License

If your business performs masonry, you must obtain a separate Chicago mason license in addition to your general contractor license. The mason license has its own class structure, fees, and insurance requirements. Do not assume one license covers both trades.

Disclaimer

This guide is informational only and does not constitute legal or business advice. Contractor licensing regulations can change, and specific requirements may vary based on your business structure and the type of work you perform. Before applying for a Chicago general contractor license, consult with the Chicago Department of Buildings or a business attorney to ensure you meet all current requirements and understand your obligations. Verify all current fees, insurance requirements, and application procedures directly with Continental Testing Services or the Chicago DOB to ensure you have the most up-to-date information.