Michigan Electrical Contractor License
The Contractor License Is a Business Credential, Not a Personal One
Michigan separates the individual trade license (journeyman or master) from the contractor license. The contractor license attaches to the business entity -- LLC, corporation, or sole proprietorship -- and authorizes it to solicit, bid on, and perform electrical work. Without it, you cannot pull permits, regardless of your personal license level.
This distinction is the source of a common question: journeymen can perform electrical work under someone else's contractor license, but they cannot pull permits or operate independently. Only a licensed electrical contractor can do that.
What Changed in 2025
LARA eliminated the separate electrical contractor examination at the state level through their Cutting Red Tape initiative. The rationale was straightforward -- since all physical electrical work is already supervised by a licensed journeyman or master, a separate business-level trade exam was redundant.
The contractor license is now purely administrative. You submit an application, pay the fee, and demonstrate that your business has a qualifying master electrician on staff. No written test at the state level.
Detroit is the notable exception. BSEED still administers its own local contractor exam and charges separate fees for local contractor registration.
Requirements
Qualifying master electrician: Your business must employ at least one full-time master electrician who resides in Michigan. This person -- the "Master of Record" -- is the professional whose license qualifies your contractor credential. A single master's license cannot qualify more than one contractor license simultaneously.
If the master leaves: Both the contractor and the departing master must notify LARA immediately. The contractor license is suspended on the spot until a new qualifying master is designated. There's no grace period.
Fee: $300 for a three-year license cycle, renewable by December 31 of the expiration year.
Insurance:
- General liability insurance meeting state requirements
- Workers' compensation insurance if you employ three or more workers at any one time
- Commercial auto insurance for company vehicles (not technically a licensing requirement, but municipal building departments often check for it)
Business entity registration: Your LLC or corporation must be registered with LARA's Corporations Division before you can apply for the contractor license.
Free Download
Get the Michigan — Electrician License Path Checklist
Everything in this article as a printable checklist — plus action plans and reference guides you can start using today.
Local Registration
A state contractor license does not automatically authorize you to work everywhere in Michigan. Municipalities with their own building departments require you to register your state license locally before you can pull permits:
Detroit: Register with BSEED, pay local fees, and pass the Detroit contractor exam. Detroit also requires a city tax clearance certificate.
Grand Rapids: Register your state license with the city's Design and Development Services Department. No separate exam -- Grand Rapids accepts the state credential -- but you must register before pulling permits.
Other municipalities with local enforcement agencies have their own registration requirements. Always check before bidding on a job in a new jurisdiction.
Contractor vs. Individual License: Quick Comparison
| Feature | Journeyman/Master License | Contractor License |
|---|---|---|
| Held by | Individual | Business entity |
| Can perform electrical work | Yes (under a contractor) | N/A (the business holds it) |
| Can pull permits | No | Yes |
| Can bid on jobs independently | No | Yes |
| Exam required | Yes (PSI) | No (state level, post-2025) |
| Renewal cycle | Annual | Triennial |
Common Missteps
Pulling permits before registering locally: Your state contractor license is valid statewide, but permits are issued by local building departments. Working without the required local registration can result in stop-work orders and fines.
Letting the master relationship lapse: If your qualifying master takes a job elsewhere, the contractor license is suspended until a new qualifying master is designated. Notify LARA and do not continue operating or pulling permits under the suspended license.
Skipping workers' comp: Michigan's threshold for mandatory workers' comp coverage catches many small shops off guard when they hire their first employees.
The Michigan Electrician License Guide covers the full contractor setup process, including business entity registration, insurance requirements, and a municipality-by-municipality registration checklist for the Detroit and Grand Rapids metro areas.
Get Your Free Michigan — Electrician License Path Checklist
Download the Michigan — Electrician License Path Checklist — a printable guide with checklists, scripts, and action plans you can start using today.