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Tennessee Contractor Bonding Requirements

Tennessee has two distinct licensing systems: Home Improvement Contractors ($3K-$25K) require $10,000 bonds. Contractor Licenses ($25K+) use financial statements - bonds optional. Understanding which license you need is critical for Tennessee compliance.

HOME IMPROVEMENT BOND - $10,000 REQUIRED

Projects $3K-$25K: $10,000 bond mandatory • Contractor Licenses ($25K+): Financial statement based

📋 Get Your Tennessee Contractor Bond Quote

Fast approval • Competitive rates

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Tennessee Legal Requirements & Official Resources

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Legal Authority

Governing Statute

Tennessee Code Annotated Title 62, Chapter 6

View Tennessee Code Annotated

Bond Requirements

Home Improvement ($3,000 to $24,999)
• $10,000 bond REQUIRED
Contractor License ($25,000 or more)
• Financial statement based (bond NOT required)
• Optional: Optional ($500K-$1M for financial statement supplement)

All bonds issued through U.S. U.S. Treasury approved carriers.

Board Contact Information

Tennessee Board of Licensing Contractors

Phone: (615) 741-8307
Address: 500 James Robertson Parkway, Nashville, TN 37243
Visit Board Official Site

Processing Times

• Initial: 4-8 weeks
• Renewal: 2-4 weeks

Tennessee License Types & Bond Requirements

Two distinct licensing paths with different bond requirements

Home Improvement
$10,000 REQUIRED
Home Improvement Contractor

Scope: $3,000 to $24,999 projects

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Unlimited
Financial statement based
Unlimited Contractor (over $3M)

Scope: No project limit

Get Quote
Specialty
Financial statement based
Specialty Contractor

Scope: Specific trades

Get Quote
Limited Residential
Financial statement based
Limited Residential (BC-A/r)

Scope: Up to $125,000 residential

Get Quote
Home Improvement Contractor Requirements
Projects $3,000 to $24,999
$10,000
Bond REQUIRED
Projects between $3,000 and $24,999
Tennessee Home Improvement Contractor License required
$10,000 surety bond REQUIRED (or cash/property bond/ILOC)
General liability insurance
Workers compensation insurance or exemption
Does NOT cover electrical, gas, mechanical, HVAC, or plumbing
Contractor License Requirements
Projects $25,000 and above
Financial Statement Based
Bond NOT required (optional $500K-$1M)
Projects valued at $25,000 or more
Tennessee Contractor License required
Bond NOT required for licensing
Financial statement requirements (net worth/working capital)
Optional bond ($500K-$1M) to supplement financial statement
General liability insurance
Workers compensation insurance or exemption
Trade exam and business/law exam required
Get Your Tennessee Home Improvement Bond
Required for projects $3,000-$24,999
Get $10,000 Home Improvement Bond - Starting at $100/year

U.S. Treasury approved carriers • Instant approval available

Major Tennessee Cities - Local Requirements

City-specific characteristics and additional requirements

Nashville

Special Requirements:

Metro business license, codes department permits

Market Focus:

Commercial development, residential growth, music industry facilities

Memphis

Special Requirements:

City business license, building permits

Market Focus:

Industrial construction, logistics facilities, historic renovation

Knoxville

Special Requirements:

City business license, MPC permits

Market Focus:

University facilities, residential development, healthcare construction

Chattanooga

Special Requirements:

City business license, RDA permits

Market Focus:

Technology sector, tourism infrastructure, riverfront development

Get Your Tennessee Home Improvement Bond

$10,000 bond required for $3K-$25K projects

📋 Get Your Tennessee Contractor Bond Quote

Fast approval • Competitive rates

✓Fast approval•✓A- rated carriers•✓All 50 states
Tennessee Contractor Bonding FAQs
Understanding Tennessee's two-tier licensing system

Tennessee Construction Markets

Statewide licensing through the Board for Licensing Contractors

Major Metro Areas & Growing Markets

Nashville: Music industry venues, healthcare (Vanderbilt, HCA), Amazon hub

Memphis: FedEx logistics, Mississippi River port, St. Jude medical

Knoxville: University of TN, Oak Ridge Labs, Smoky Mountain tourism

Chattanooga: "Gig City" tech hub, Volkswagen plant, waterfront

Franklin: Affluent residential (Williamson Co), corporate relocations

Murfreesboro: Suburban Nashville growth, MTSU expansion

Clarksville: Fort Campbell military contracting

Bartlett: Memphis suburban development

Johnson City: Tri-Cities medical, ETSU facilities

Tennessee's no state income tax policy drives business relocations and construction growth across all major metros.

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📋 Get Your Tennessee Contractor Bond Quote

Fast approval • Competitive rates

✓Fast approval•✓A- rated carriers•✓All 50 states