Tennessee Contractor License Transfer

When You Need a License Transfer

If you change your business structure — sole proprietorship to LLC, sole proprietorship to corporation, partnership to LLC, or any other entity conversion — you cannot simply use your existing contractor license for the new entity. Under Tennessee law (T.C.A. § 62-6-111(e) and Board Rule 0680-01-.09), the old entity and the new entity are legally distinct, even if you are the same person running the same business.

You must submit a formal Transfer/Change Mode of Business Operation request through the CORE portal. The new entity cannot bid on or enter into new contracts until the revised license is issued.

What the Transfer Requires

The Transfer/Change Mode of Operation request is not a simple name-change form. The Board treats it as a partial re-application, because the financial standing of the new entity must be independently verified. Here is what you need:

A new CPA-reviewed or audited financial statement prepared in the exact legal name of the new entity. Your old financial statement — prepared in the sole proprietorship or prior entity name — will not be accepted. Alternatively, if you are using the Contractors' Surety Bond pathway (available since July 1, 2026 under Public Chapter 1039), the bond must be issued in the new entity's name.

Updated corporate registration showing the new entity is in good standing with the Tennessee Secretary of State. If you just formed an LLC, your Articles of Organization need to be on file and active.

Updated insurance certificates listing the new entity's exact legal name. Both your general liability and workers' compensation certificates must reflect the new business name — not the old sole proprietorship or prior entity.

A $100 transfer fee paid through CORE at submission.

The Name-Match Rule Is Strict

Every document in your licensing file must carry the identical legal name: Secretary of State registration, CPA financial statement or surety bond, insurance certificates, and the CORE application itself. Even small variations — "Smith Construction LLC" versus "Smith Construction, LLC" — can trigger a hold.

This is also why you cannot bid or contract under a name different from what appears on your license. If you registered a DBA with the Secretary of State, that DBA must appear on the license. Using a trade name that is not reflected in your licensing records is treated as unlicensed activity.

Timeline and What to Expect

The Board processes transfer requests during its regular meeting cycle, similar to new applications. Expect four to six weeks for a straightforward transfer with complete documentation.

During the processing period, the new entity cannot bid on or enter into new contracts until the revised license is issued. If you submit the application within 90 days of the change, the existing entity may continue work on contracts entered before the change. Plan the timing of your entity conversion around your project pipeline — an active bid cycle is the worst time to initiate a transfer.

Common Scenarios

Sole proprietor incorporating for liability protection: This is the most common transfer. You formed a sole proprietorship to get started, built a track record, and now want the asset protection of an LLC. File the LLC with the Secretary of State, get a new CPA statement or surety bond in the LLC's name, update your insurance, and submit the transfer through CORE.

Partnership dissolving into separate entities: If partners split and each wants to continue contracting independently, each needs their own license. The existing partnership license cannot simply be reassigned to one partner — both must either transfer or apply fresh.

Adding a partner or member to an LLC: If the ownership structure changes in a way that affects the mode of operation — for example, converting from a single-member LLC to a multi-member LLC — verify with the Board whether a formal transfer is required. Not every ownership change triggers the full transfer process, but changes that alter the entity's legal classification typically do.

For the complete licensing process from entity formation through transfer, the Tennessee General Contractor License Guide covers every stage with document checklists and templates.

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