Illinois Guide

Contractors License Requirements
in Illinois

Illinois is one of only a handful of states with no statewide general contractor license. There is no state agency that licenses or registers general contractors for residential or commercial construction across Illinois. Instead, contractor licensing is handled entirely at the local level — city by city, county by county. Chicago has among the most extensive municipal contractor licensing systems in the country, with separate licenses for electricians, plumbers, general contractors (for demolition and certain work types), and specialty trades issued through the City of Chicago Department of Buildings. Contractors working in suburban municipalities or downstate cities must research each jurisdiction's individual licensing requirements, as there is no uniform standard across Illinois's 1,300+ municipalities.

Required Permits & Licenses

Permit / License Issuing Authority Renewal Typical Fee Notes
City of Chicago Electrical Contractor License City of Chicago — Dept. of Buildings Annual $200–$400 Required for any electrical work in Chicago. Requires passing a Chicago electrical contractor exam. Chicago's electrical code is locally adopted and differs from the NEC in several respects.
City of Chicago Plumbing Contractor License City of Chicago — Dept. of Buildings Annual $200–$400 Required for plumbing work in Chicago. Chicago plumbing code is locally adopted. City of Chicago journeyman plumber license also required for individual plumbers.
City of Chicago General Contractor / Wrecking License City of Chicago — Dept. of Buildings Annual $200–$600 Chicago requires a city contractor license for wrecking/demolition and certain construction categories. General carpentry and framing do not require a city contractor license but may require permits for individual jobs.
Illinois HVAC Contractor License (state) Illinois Dept. of Public Health Every 2 years $75–$150 Illinois licenses HVAC contractors at the state level (225 ILCS 317). A valid state HVAC license is required to perform HVAC work anywhere in Illinois, including Chicago.
City of Chicago Business License (BACP) City of Chicago — Dept. of Business Affairs and Consumer Protection Annual (expires June 30) $275–$750 depending on business type General business license required for contractors with a Chicago office or performing substantial work in Chicago. Separate from trade-specific contractor licenses.
Building Permit (per project) City of Chicago Dept. of Buildings (or local building dept. downstate) Per project Varies by project value and type Individual project permits are required for virtually all construction, remodeling, electrical, plumbing, and mechanical work. Permit applications in Chicago are submitted through the City's E-Plan system.

Illinois Has No Statewide General Contractor License

Unlike California, New York, and most other large states, Illinois does not have a statewide general contractor license. There is no Illinois Department of Professional Regulation license for general contractors. This means a contractor in Illinois is not required to hold any state-issued license to bid on or perform general construction work — the licensing requirement, if any, comes entirely from the city or county where the work is performed.

The practical implication is that Illinois contractors must investigate each municipality's requirements individually. Chicago has a comprehensive city licensing system. Oak Park, Evanston, and other large suburbs have their own contractor registration requirements. Smaller municipalities may require only a business license and job permits, with no contractor-specific license at all. Out-of-state contractors entering Illinois for a project must check whether the specific municipality requires contractor registration before pulling permits. Failure to hold a required city license can result in stop-work orders and fines.

Chicago Contractor Licensing: Electrical, Plumbing, and HVAC

Chicago's Department of Buildings administers one of the most comprehensive municipal contractor licensing systems in the country. The key trade licenses include:

Workers' Compensation and Bonding Requirements for Illinois Contractors

Illinois requires all employers — including contractors with even one employee — to carry workers' compensation insurance through an approved carrier or the Illinois State Workers' Compensation Commission. Illinois does not have a contractor-specific bond requirement at the state level, but many municipalities (including Chicago) require contractors to file a surety bond as a condition of contractor licensure.

Chicago's contractor licensing typically requires a bond ranging from $10,000 to $25,000 depending on the license type. The bond must remain active throughout the license period — cancellation triggers an automatic license suspension. Illinois has no statewide Home Improvement Contractor (HIC) licensing requirement as California does, but Chicago and several suburbs have local ordinances requiring residential contractors to carry specific minimum liability insurance amounts before performing home improvement work. Contractors should confirm insurance minimums with each municipality where they work.

Frequently Asked Questions

Is there a statewide general contractor license in Illinois?

No. Illinois does not have a statewide general contractor license. There is no state agency that licenses or registers general contractors for residential or commercial construction across Illinois. Licensing is handled entirely at the local level — city by city, county by county. Chicago has a comprehensive city licensing system for electrical, plumbing, and demolition contractors. Contractors must check the specific requirements of each municipality where they plan to work.

Do Chicago electricians need a special Chicago license in addition to any state license?

Yes. Chicago requires electrical contractors to hold a City of Chicago Electrical Contractor License, which requires passing a Chicago-specific exam covering the Chicago Electrical Code. Individual electricians working in Chicago must also hold a Chicago Journeyman Electrician Card. Illinois does not have a statewide electrical contractor license — Chicago's requirement is separate and in addition to any state-level journeyman license an electrician may hold.

Does Illinois require HVAC contractors to be licensed at the state level?

Yes. Illinois licenses HVAC contractors at the state level under 225 ILCS 317 through the Illinois Department of Public Health. This is one of the few trade categories where Illinois has a statewide contractor licensing requirement. HVAC contractors must obtain the state license before performing HVAC work anywhere in Illinois, including Chicago. Individual project permits are also required from the local building department.

What permits does a Chicago contractor need to pull for a residential remodel?

Chicago requires building permits for virtually all residential construction and remodeling work, including structural changes, electrical, plumbing, and mechanical work. Permit applications are submitted through Chicago's E-Plan online system. The contractor or owner must hold the required trade licenses for the work types involved. Minor repairs and cosmetic work (painting, flooring, cabinet replacement) generally do not require permits, but Chicago's Department of Buildings inspectors can cite unlicensed or unpermitted work discovered during routine inspections.

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