In North Carolina, any construction job that costs $40,000 or more has to be run by a licensed general contractor. That’s the whole rule in one sentence, and it’s the part most people already know.
What they don’t know is that “licensed” isn’t a yes-or-no answer. A North Carolina general contractor license comes with a classification that says what kind of work it covers and a limitation that says how big a job it covers. A contractor can be fully licensed and still not be licensed for your project. Here’s how to read what the license actually says.
If you just need to look someone up, our step-by-step guide to checking a contractor’s license walks through the search. This piece is about what you’re looking at once you find them.
The $40,000 line
The rule comes from G.S. 87-1. Anyone who, for a price, fee, or wage, bids on, builds, or superintends the construction of “any building, highway, public utilities, grading or any improvement or structure where the cost of the undertaking is forty thousand dollars ($40,000) or more” is a general contractor in the eyes of the state, and has to be licensed. The same goes for anyone setting up a North Carolina labeled modular home.
That number is newer than a lot of what you’ll read online. It went from $30,000 to $40,000 on October 1, 2023. If a page still says $30,000, it was written before then and hasn’t been updated.
Two practical points about the threshold:
- It’s the cost of the undertaking, not one line on the invoice. A kitchen remodel that’s $28,000 in labor and $15,000 in cabinets is a $43,000 job.
- It isn’t the permit threshold. North Carolina has a second $40,000 rule, the one that lets you skip a building permit on some smaller residential work. Same number, different law, different consequence. We untangle the two in our Buncombe County permits guide.
Under $40,000, the state doesn’t require a general contractor license at all. That doesn’t make licensing irrelevant on a small job. It just means the law isn’t the one asking.
Can you be your own general contractor in NC?
Yes, with conditions. G.S. 87-1 exempts an owner who builds or alters a building on their own land, intended solely for them and their family to live in. The catch is written into the statute: if you don’t actually occupy it for at least 12 months after completion, the law presumes you never intended to.
The exemption also comes with paperwork. Under G.S. 87-14, an owner claiming it on a $40,000-plus permit signs a verified affidavit saying three things:
- You own the property.
- You’ll personally superintend and manage all of the construction, and won’t hand that job to anyone unlicensed.
- You’ll be personally present for every required inspection (unless an NC-licensed architect drew and sealed the plans).
The permit office sends that affidavit to the licensing board, which checks it. If the exemption didn’t apply, the permit gets revoked.
So “I’ll just be my own GC” is a real option for a house you’re going to live in, and not a loophole for a spec build or a rental. The City of Asheville layers a couple of its own conditions on top, including a homeowner’s electrical exam before you do your own wiring. Our city vs. county permits article covers those.
Five classifications, and which one your job needs
A license is issued in one or more classifications. The statute (G.S. 87-10) sets out five:
| Classification | What it covers |
|---|---|
| Building | Buildings of all types: residential, commercial, industrial, institutional. Also site work, paving, retaining walls, and specialty work like roofing, masonry, and swimming pools |
| Residential | Only homes built to the North Carolina Residential Code, plus the site work, driveways, and specialty work that goes with them |
| Highway | Roads, bridges, culverts, curbs and gutters, guardrails, runways |
| Public Utilities | Water and sewer lines, treatment plants, power lines ahead of your meter, communications, gas distribution |
| Specialty | One specific trade, such as roofing, insulation, interior construction, masonry, concrete, swimming pools, or metal erection |
For a homeowner, it usually comes down to the first two. Residential covers your house. Building covers your house and everything else. A contractor holding either one can build or renovate a single-family home. Where Residential stops is a building that’s governed by the commercial code rather than the residential code, which is worth knowing if you own in a larger mixed-use or multi-unit building downtown.
The specialty classifications show up in the board’s search as an S followed by the trade: S (Roofing), S (Swimming Pools), S (Interior Construction), and so on. That’s why you’ll sometimes hear that North Carolina has “no roofing license.” There’s no separate roofing board. There is a roofing classification, and it lives under the general contractor board. A roofer bidding a $45,000 metal re-roof needs it, or needs a Building or Residential license that includes roofing work. If you’re shopping roofers now, our roofing contractors directory is a good place to start.
What a general contractor license doesn’t cover
This is the part most homeowners miss. The statute defines the Specialty classification as skilled trade work, but not any work that another state board already licenses. In practice, that means a general contractor license never covers:
- Plumbing: licensed by the State Board of Examiners of Plumbing, Heating and Fire Sprinkler Contractors. See our NC plumbing license lookup.
- Heating and air conditioning: same board as plumbing, different classifications. See what H-1, H-2, and H-3 mean.
- Electrical: the NC State Board of Examiners of Electrical Contractors. See our NC electrical license lookup.
On a whole-house renovation, the general contractor runs the job and hires licensed subs for those trades. What you’re checking is that each trade on your project has its own license from its own board. A GC’s license number on the contract doesn’t stand in for the electrician’s.
Limited, intermediate, unlimited: a dollar cap, not a grade
Every license also carries a limitation. This one’s easy to misread, because it sounds like a skill ranking. It isn’t. It’s the largest single project the contractor is allowed to take on, and it’s tied to how much financial backing the company has shown the board.
Current figures from the NC Licensing Board for General Contractors:
| Limitation | Largest single project | What the company has to show (one of) |
|---|---|---|
| Limited | $750,000 | $17,000 in working capital, $80,000 net worth, or a $175,000 surety bond |
| Intermediate | $1,500,000 | $75,000 in working capital or a $500,000 surety bond |
| Unlimited | No cap | $150,000 in working capital or a $1,000,000 surety bond |
Those caps exclude the cost of the land and the cost of improving it.
These numbers went up in June 2022, from $500,000 and $1,000,000. Plenty of pages online, including some that rank well, still quote the old ones.
For most Asheville projects, a Limited license is all you need to see. It covers nearly every remodel, addition, and a great many new custom homes. Where the limitation starts to matter is a larger new build on a mountain lot, where the cost can clear $750,000 without much effort. At that point, you want Intermediate or Unlimited on the license, and it’s a fair thing to confirm before you sign rather than after.
A small shop with a Limited license isn’t a lesser contractor. It’s a company that’s sized its license to the work it does.
Reading a license once you’ve found it
The board’s public search is at portal.nclbgc.org. When a result comes back, four things are worth reading:
- Status. You want it active. North Carolina licenses expire every January 1 and become invalid 60 days later if they aren’t renewed, so a January or February job is a good time to look twice.
- Classification. Does it match the work? Residential or Building for a house; the right S classification for a specialty trade.
- Limitation. Is your project under the cap?
- Qualifier. Every licensed company has a qualifier, the individual who passed the state exam. If that person leaves, the license stays in force for 90 days, but the company can’t bid on or take new contracts until it’s sorted out.
One newer detail: as of summer 2026, the board says a licensee’s profile now links to any consent orders or final decisions from a complaint that ended in discipline. That’s the closest thing to a complaint history the search offers, and it’s worth a click.
The mechanics of the search, including which name to search under when the business name comes up empty, are in our step-by-step license guide.
If you’re the one getting licensed
A lot of people searching this are contractors, not homeowners. We’re a homeowner resource, so this is the short version. The board is the authority, and its requirements are what count.
Under G.S. 87-10, an applicant has to be at least 18, of good moral character as the board determines it, able to show the financial responsibility for the limitation they’re applying for (the table above), and willing to consent to a criminal background check if the board requires one. The company names a qualifier who passes the board-approved exam. That exam covers reading plans and specs, the NC State Building Code, estimating, contractor responsibilities and lien law, and sediment and erosion control.
Statutory fees are capped at $100 for the exam and $75, $100, or $125 for a limited, intermediate, or unlimited application. Renewal comes due every January 1 and requires continuing education. The board announced in 2026 that licensees can now apply to raise their limitation through its online portal.
For anything specific to your situation, go to the board directly at nclbgc.org or (919) 571-4183.
What the board can do for you, and what it can’t
Expectations here matter, because they’re often wrong. The board’s own consumer FAQ is plain about it: it “has no authority to require a contractor to make repairs or make reimbursement of funds.” Its authority is over the license. A complaint can lead to discipline against the license, but it won’t get your deposit back or get the job finished. Complaints are now filed online only.
There is one money route. The Homeowners Recovery Fund reimburses owners of a single-family home for losses caused by the “dishonest or incompetent conduct” of a licensed general contractor, or an unlicensed one who claimed to be licensed. It’s a last resort. You have to pursue the contractor first, and awards are capped. The fund is paid for by a $10 fee on every single-family residential permit a general contractor pulls. The board runs it, and the details are on the Homeowners Recovery Fund page.
Notice who the fund covers: work done by a licensed contractor, or one who lied about it. That’s one more reason to check before the job starts rather than after.
Knowingly contracting for $40,000-plus work without a license is a Class 2 misdemeanor under G.S. 87-13. Beyond that, what a missing license means for your specific contract or dispute is a question for the board and a lawyer, not for us.
Five questions to ask before you sign
- What’s your license number, and whose name is it under? Then look it up yourself.
- Which classification is this job running under? Residential or Building for a house, or the right S classification for a specialty trade.
- Is my project under your limitation? Especially on a new build.
- Who’s doing the plumbing, HVAC, and electrical, and what are their license numbers? Each one checks on a different board.
- Who’s pulling the permit? On a job this size, the answer should be the contractor.
None of these are hostile questions. A contractor who’s properly licensed will answer all five without looking up from the estimate.
Frequently asked questions
When do you need a licensed general contractor in North Carolina? When the cost of the construction project is $40,000 or more. G.S. 87-1 requires anyone who bids on, builds, or superintends a building, improvement, or structure at or above that amount to hold a license from the NC Licensing Board for General Contractors. The threshold rose from $30,000 to $40,000 on October 1, 2023.
Can I be my own general contractor in North Carolina? Yes, if you are building or altering a home on land you own, solely for you and your family to live in. You must occupy it for at least 12 months after completion, and for a project of $40,000 or more you sign a verified affidavit at the permit office agreeing to personally manage the construction and attend every required inspection.
What is the difference between a limited, intermediate, and unlimited license? The limitation is the largest single project the contractor may take on, excluding land costs. A limited license covers projects up to $750,000, an intermediate license up to $1,500,000, and an unlimited license has no cap. The caps were raised from $500,000 and $1,000,000 in June 2022.
What is the difference between a building and a residential license? A residential license covers homes built to the North Carolina Residential Code. A building license covers buildings of all types, including residential, commercial, and industrial. Either one covers work on a single-family house.
Does a general contractor license cover plumbing, electrical, or HVAC work? No. Plumbing and heating and air conditioning are licensed by the State Board of Examiners of Plumbing, Heating and Fire Sprinkler Contractors, and electrical work by the State Board of Examiners of Electrical Contractors. Each trade on a project needs its own license from its own board.
Is there a separate roofing license in North Carolina? There is no separate roofing board. Roofing is a specialty classification issued by the NC Licensing Board for General Contractors, and it is also included in the building and residential classifications. A roofing job of $40,000 or more requires a contractor licensed for roofing work.
Find a general contractor around Asheville
Once you know what the license should say, the next step is finding someone whose license says it. Our general contractors directory lists local companies serving Asheville and Western North Carolina, and our custom home builders directory covers the new-build side. Run whoever you’re considering through the license check, and read the classification and limitation along with the status.