How to Get a Contractor License or Registration in Mississippi

Step one: pick commercial or residential, and pick the classification inside it

MSBOC publishes a commercial application and a residential application, and they are not interchangeable. On the commercial side you may select "a Major Classification, a Specialty Classification, or both". The Board lists the major classifications as "Building Construction; Heavy Construction; Highway, Street and Bridge Work; Mechanical Work; Electrical Work; or Municipal and Public Works Construction", and defines a specialty classification as "a division under a major classification for which a contractor may be licensed for a more specific trade, such as Drywall, Roofing or Process Piping".

On the residential side the choice is a shorter, fixed list. MSBOC directs residential applicants to "choose from Residential Building, Residential Remodeling, Residential Roofing, Construction Manager, Residential Solar, Residential Mechanical, Residential HVAC, Residential Plumbing, and Residential Electrical". Its Classifications page publishes nine residential classifications with scope statements, and most of them end with a sentence limiting the holder to that work - Residential Roofer, for example, "is limited to residential roofing work only".

Choose against the largest job you intend to sell, because scope is what the licence buys. The Board's Classifications page states that "holding a major classification entitles the license holder to perform all of the specialty classifications noted within the major classification category", that applicants who do not want a major classification "may choose an unlimited number of specialty classifications", and that "one selection is included with the application fee, but each additional selection requires an additional $100 fee. Fees are non-refundable." The same page carries a disclaimer that any question about which classification covers your work is "ultimately subject to the final decision of the Board", citing Section 31-3-13(h).

Official sources: MSBOC Apply For A License; MSBOC Classifications

Step two: assemble the file, because incomplete applications are what get returned

MSBOC is blunt that this is where applications die: it "receives thousands of applications each year, but numerous applications are returned or rejected due to incomplete or incorrect information". Its own checklist is specific. Type or print in blue or black ink only, because the application is scanned and "anything other than blue or black ink cannot be read". Write "N/A" rather than leaving a box blank. And "a U.S. social security number is required for each qualifying party included on the license. Other forms of identification are not acceptable."

Reference letters are a requirement, not a nicety. The Board states that "applicants must submit a minimum of three reference letters. One reference letter must be submitted by the applicant's bank or financial institution. The other reference letters can be submitted by any individual or entity the applicant worked with such as another contractor architect or supplier." Example letters are printed in the appendices of the application packet.

Commercial applicants add the financial statement and the insurance certificate. The reviewed statement, prepared by a CPA, must show "a net worth of $50,000 or greater if applying for a major classification, or a net worth of $20,000 or greater if applying for a specialty classification", and Board Rule 1.1(2)(i) requires it to have been completed within the prior twelve months. The general liability certificate must show "$300,000 per occurrence or $600,000 aggregate at a minimum", with MSBOC listed so it is notified of cancellation. Residential applicants file neither a financial statement nor a minimum coverage amount - only proof of coverage.

Two extras catch specific applicants. If you have five or more employees, submit proof of workers' compensation coverage. And commercial applicants seeking the fire sprinkler classification "must include proof of having NICET Level 3 certification for the qualifying party". Applications go to MSBOC at PO Box 320279, Jackson MS 39232, and Board Rule 1.1(2)(g) notes the $400.00 cheque "should accompany the application but may be submitted separately. No application will be acted upon until such check is received."

• Completed application form provided by the Board - no substitute accepted.
• Social security number for every qualifying party.
• Proof of employment for each qualifying party: check stub, W-2, or Secretary of State listing.
• Minimum three reference letters, one from the applicant's bank or financial institution.
• Commercial only: CPA-reviewed financial statement completed within the prior twelve months.
• Certificate of general liability insurance naming MSBOC for cancellation notice.
• Proof of workers' compensation coverage if you have five or more employees.
• Proof of good standing with the Secretary of State for a corporation, LLC or LLP.

Official sources: MSBOC Apply For A License; MSBOC Commercial Laws and Rules (Miss. Code Ann. ch. 31-3; Title 30 Part 802); MSBOC Frequently Asked Questions

Step three: the qualifying party, and why the Board treats it as a real job

Every licensed Mississippi company hangs off one tested individual. MSBOC defines the qualifying party as "an owner, officer or responsible managing employee" who takes the exams on the company's behalf, and states three tests that all have to be true at once: they must "work there - really employed by the company, provable at application and renewal", "do the work - actively engaged in the licensed trade, not just on paper", and "be capable - have the real skill and experience to perform or supervise the work".

There are limits on how far one person can be stretched. Statute at Section 31-3-13(a) provides that "a qualifying party may serve no more than three (3) separate entities as the qualifying party without first appearing before the board and being granted special permission", and the Board repeats it as "one person can qualify at most 3 companies at once (a 4th needs the Board's special approval)". A single company may also have more than one qualifying party, with different qualifiers assigned to different classifications - one person can sit the trade exam while another sits the Law and Business Management exam.

Departure is the risk nobody plans for. Board Rule 1.1(2)(l) requires that when the qualifying party terminates employment, MSBOC "must be notified in writing immediately, by the qualifying party and the Certificate holder", and that "another party must qualify within ninety (90) days of the disassociation or the Certificate holder will be subject to suspension or revocation of its Certificate of Responsibility". If your company has exactly one qualifier and they leave in month one of a nine-month build, you have ninety days to solve it.

Official sources: MSBOC Frequently Asked Questions; MSBOC Commercial Laws and Rules (Miss. Code Ann. ch. 31-3; Title 30 Part 802)

Step four: exams, which are open book and administered by PSI

Every applicant sits at least one exam. MSBOC states that "all applicants are required to take a Mississippi Law and Business Management exam" and that "applicants must also take a trade exam if one is required for their classification". Some specialty classifications require no trade exam at all; the Classifications page marks which do, and one - Limited Specialty Services - states outright that "no examination or credential is required".

The Board does not run the exams itself. MSBOC states that "all exams are administered by PSI and are open book", that after your application arrives the Board sends a Candidate Information Bulletin explaining "how to schedule an exam, which books are allowed, and where to obtain them", and that "no candidate may schedule an exam until MSBOC submits this information" to PSI. Exams are offered several days a week at a time and location of your choosing. The passing mark is fixed by rule: Board Rule 1.1(9) sets it at "a grade of at least 70%" on the commercial side, and residential Rule 1.1(1)(m) requires "at least 70%" as well. Applicants unable to take a written exam may request an oral one; the fee schedule prices that at $50.00.

Two multi-state alternatives exist and are worth knowing about if you work across borders. A general building contractor "may choose to take the NASCLA Accredited Examination for Commercial General Building instead of the Mississippi Building Construction exam", and a Master Electrical contractor "may choose to take the NASCLA Accredited Electrical Examination instead of the Mississippi Master Electrical exam". MSBOC lists Mississippi among the jurisdictions accepting each.

Official sources: MSBOC Frequently Asked Questions; MSBOC Apply For A License; MSBOC Classifications; MSBOC Commercial Laws and Rules (Miss. Code Ann. ch. 31-3; Title 30 Part 802); MSBOC Residential Builders Law (Miss. Code Ann. ch. 73-59; Title 30 Part 803); MSBOC Fee Schedule (effective January 1, 2016)

Step five: fees, and the one figure two official documents disagree about

The upfront numbers are consistent across the Board's pages. "For commercial applications the fee is $400.00. Residential applications require a $50.00 fee." Adding a classification later costs "$100.00 for each additional class you add to your license". A name change is $50. Moving a licence to inactive status is $25, and moving it back to active is another $25 - and while inactive you still pay annual renewal fees, but are "not eligible to submit bids, enter contracts, pull permits, or perform work". Board Rule 1.1(12) confirms that while inactive, the financial and insurance requirements do not apply, but must be satisfied again to reactivate.

The renewal figure is where the Board contradicts itself, and we are not going to resolve it for you. The Fee Schedule PDF published on msboc.us, headed "Fee Schedule Effective January 1, 2016", lists "Commercial License Renewal $400.00" and "Commercial License Renewal - Late Fee $50.00". The Board's own Rule 3.4 fee schedule, printed inside the 2022 Commercial Laws and Rules document, lists "Commercial License Renewal $200.00" with the same $50.00 late fee. Both documents are current MSBOC publications and both are linked below. The residential figures agree across the two: "Residential License Renewal $100.00" and a "$10.00" late fee, which also matches Board Rule 1.1(1)(h) and the statutory cap in Section 73-59-3(4) that the licence fee "cannot exceed One Hundred Dollars ($100.00)".

On top of the fee, commercial certificate holders pay two statutory charges most applicants do not budget for. Section 31-3-17 levies "a special privilege license tax of Two Hundred Dollars ($200.00) on each contractor who applies for a certificate of responsibility", and permits an additional tax "not to exceed One Hundred Dollars ($100.00) for each additional classification". Section 31-3-14 imposes a further $200.00 at application or renewal into the Construction Education Fund, from which residential builders licensed under ch. 73-59 are expressly exempt - though $25.00 of the residential fee is itself routed to that fund and distributed to the Mississippi Housing Institute.

Official sources: MSBOC Fee Schedule (effective January 1, 2016); MSBOC Commercial Laws and Rules (Miss. Code Ann. ch. 31-3; Title 30 Part 802); MSBOC Frequently Asked Questions; MSBOC Residential Builders Law (Miss. Code Ann. ch. 73-59; Title 30 Part 803)

Check the official page yourself before you file, bid or sign

Mississippi splits contractor rules across at least four agencies: MSBOC for the licence, the Secretary of State for the entity, the Department of Revenue for the sales tax permit and the contractor's tax, and the Workers' Compensation Commission for coverage. No single page carries all of it, and each changes on its own schedule. On top of that, Section 73-59-17 puts your local building official in the chain: that official "shall refuse to issue a permit for any undertaking which would classify the applicant as a residential builder or remodeler under this chapter" unless you show you are licensed or exempt, and shall report suspected violations to the Board.

One more reason to check rather than rely on a summary: MSBOC's own published fee schedule and the Board's own Rule 3.4 fee schedule currently disagree on the commercial renewal fee, at $400.00 and $200.00 respectively. We report both and pick neither. Before you send money, open the current fee schedule on msboc.us, or call the Board at 601-354-6161 or 800-880-6161 and confirm the figure for your licence type. MSBOC also warns that application fees are non-refundable and that "applicants have 180 days to complete the application process. After 180 days, incomplete applications are destroyed."

Official sources: MSBOC Fee Schedule (effective January 1, 2016); MSBOC Commercial Laws and Rules (Miss. Code Ann. ch. 31-3; Title 30 Part 802); MSBOC Apply For A License; Mississippi State Board of Contractors; MSBOC Residential Builders Law (Miss. Code Ann. ch. 73-59; Title 30 Part 803)