Getting a Virginia contractor license is a sequence, and the order matters. Virginia licenses contractors by firm, not by individual, so the business entity has to exist, the right people have to be in place, and the business exam has to be passed before the Board will issue the license. Here are the eight steps in order, with the numbers that apply at each one.
Step 1: Determine your license class
Class follows the dollar value of your work under the 2025 thresholds: Class A at $150,000 or more for a single contract (or $1,000,000 in 12 months), Class B from $30,000 to under $150,000 (or $250,000 to under $1,000,000 in 12 months), Class C for work over $1,000 and under $30,000 (or under $250,000 in 12 months). The full classifications guide walks through the decision. Pick the class for the work you actually intend to do; taking work above your class is unlicensed contracting.
Step 2: Form the business entity
The license belongs to the firm, so the entity comes first. Whatever structure you choose (LLC, corporation, sole proprietorship), the business must continuously maintain a registered office and registered agent in Virginia (13.1-1015 for LLCs, 13.1-619 for stock corporations, 13.1-833 for nonstock corporations). The registered agent's sole duty is forwarding process, notice, or demand to the entity's last known address.
Step 3: Complete the 8-hour basic business course
A board-approved 8-hour basic business course is required for the designated employee or the responsible-management member. Take it early: the material overlaps heavily with what the business exam tests, so it doubles as study time.
Step 4: Line up your qualified individual
Every classification or specialty on the license needs a qualified individual with experience and a prerequisite credential or a board-approved technical exam for that specialty. Experience requirements: 5 years for Class A, 3 years for Class B, 1 year for Class C. Class C takes no business exam, but it still needs a qualified individual with a credential or a passed technical exam; trade and specialty exams live in a separate PSI bulletin.
Step 5: Name the designated employee (Class A and B only)
The designated employee is a full-time employee or responsible-management member, 18 or older, who passed the board's business exam on the firm's behalf. Class A takes all three PSI portions (Virginia, General, Advanced); Class B takes the Virginia Portion and the General Portion. The exam is open book, fees are $40/$72/$85 by portion count, and scores are valid for 1 year. The open-book strategy guide explains how to pass it. (A narrow grandfather exemption in 54.1-1108.1 covers pre-1991 licensees.)
Step 6: Satisfy the net worth or bond requirement
Class A firms show $45,000 net worth or equity; Class B shows $15,000; Class C has no net worth requirement. A $50,000 surety bond may substitute for the Class A or B net worth. Prove net worth with a board financial statement, a CPA-reviewed statement, or a CPA audit; property held as tenants by the entirety is excluded. Adverse-financial disclosures look back 5 years for Class A, 4 for Class B, 3 for Class C.
Step 7: Apply to the Board and pay
Submit the application with the initial fee: $400 (Class A), $380 (Class B), $235 (Class C), plus the $25 Transaction Recovery Fund assessment. If you hold a comparable out-of-state license in good standing, ask about the 45-day non-renewable temporary license that lets you work while the application is processed.
Step 8: Stay licensed after issuance
The license runs for 2 years from the last day of the month issued. Renewal is allowed within 30 days after expiration, but the license is not valid during that 30-day window: working in the grace period is unlicensed contracting. Renewal fees are $240/$225/$195. After 30 days you need reinstatement ($490/$460/$405), allowed up to 24 months post-expiration, after which you apply as new. Keep records for 5 years, report name or address changes in writing within 30 days, and report QI changes within 60 days. Virginia has no continuing education requirement for contractor licenses.
Common sequencing mistakes
- Applying before the exam is passed. The designated employee's passing scores are part of what qualifies the firm; plan the exam first.
- Skipping the 8-hour course. It is a licensing requirement, not optional continuing education.
- Forgetting the registered agent. The entity cannot be licensed without one continuously maintained.
- Letting the renewal window fool you. Thirty days after expiration with no validity is not a grace period for working; it is a deadline for paperwork.
Budget the whole path with the license cost breakdown, check the full requirements, and test your exam readiness with the sample questions. This is an independent study aid, not affiliated with DPOR, the Board for Contractors, PSI, or NASCLA; confirm every figure against current law before you apply.
Try the free practice quiz
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