Quick facts: Illinois requirements
- State GC license
- None - Illinois issues no statewide general contractor license
- Statewide trade licenses
- Roofing (Roofing Industry Licensing Act) and plumbing are licensed; most others fall under the Home Repair Act plus local rules
Fees, insurance minimums, and rules change. Verify every item with the responsible agency before you rely on it.
Illinois splits contractor regulation three ways: a couple of trades get real state licenses, most residential work gets a consumer-protection law instead, and cities like Chicago layer their own licensing on top.
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What starting an Illinois contracting business actually involves
Roofing is licensed statewide, and unlicensed work is a crime, not a fine. Under the Roofing Industry Licensing Act, the qualifying party must pass an exam - residential-only for a limited license, or residential/commercial/industrial for an unlimited license - plus an Illinois jurisprudence exam on the law itself. Licensees carry public liability and property damage insurance, workers' compensation coverage, an unemployment insurance account, and a surety bond: $10,000 for the limited license, $25,000 for the unlimited license. Operating without one is a Class A misdemeanor on a first offense, a Class 4 felony after that, plus civil penalties up to $15,000. The statute does not set a minimum years-of-experience requirement.
Outside roofing and plumbing, there is no state contractor license - but there is a consumer-protection law that shapes how you operate. The Home Repair and Remodeling Act does not license contractors; it regulates how they do business. It applies to home repair work over $500. Above $1,000, you need a written contract stating the total cost, materials, and your business name and address, plus you must hand the customer the state's "Home Repair: Know Your Consumer Rights" pamphlet before they sign.
The Home Repair Act's insurance floor is higher than it looks at first glance. Covered contractors carry liability insurance of at least $100,000 per person and $300,000 per occurrence for bodily injury, and $50,000 per occurrence for property damage - unless the business's net worth exceeds $1,000,000, in which case the insurance requirement doesn't apply.
Customers get real cancellation rights on at-home sales. Three business days to cancel, extended to 15 business days for customers 65 or older, plus additional cancellation protections when a repair is being paid through an insurance claim.
Where people get stuck
The mistake is treating "no state general contractor license" as "no state rules." The Home Repair Act's contract, disclosure, and insurance requirements are not optional once you cross $500 in a residential job - and if you're in Chicago, the city's own Department of Buildings trade license system sits on top of whatever the state requires.
Not sure whether your trade needs a state license, falls under the Home Repair Act, or both? Contractor Lane sorts it out with you.
Where Contractor Lane comes in
Contractor Lane helps you confirm whether your trade needs a state license, gets your Home Repair Act paperwork and insurance minimums in order, and flags city-level requirements like Chicago's before you take your first job.
Build your free roadmap to get the sequence for your specific trade and target project size.
General educational information for people starting a business in Illinois. Requirements and fees change. Contractor Lane is not a law firm or tax advisor.
Common questions
Does Illinois require a general contractor license?
No. Illinois has no statewide general contractor license. Roofing is the one trade licensed statewide under the Roofing Industry Licensing Act. Plumbing is also separately licensed. Most other contractors are instead governed by the Home Repair and Remodeling Act, a consumer-protection law, plus whatever local licensing their city or county requires - Chicago runs its own trade license system through the Department of Buildings. Source: Illinois Roofing Industry Licensing Act, 225 ILCS 335.
What does the Illinois Home Repair and Remodeling Act require?
It applies to home repair work over $500, with a written contract required above $1,000 stating total cost, materials, and business information. Contractors must give customers the Home Repair: Know Your Consumer Rights pamphlet before signing and carry liability insurance of at least $100,000 per person / $300,000 per occurrence for bodily injury and $50,000 per occurrence for property damage, unless their net worth exceeds $1,000,000. Customers get a 3-day cancellation right (15 days if 65 or older) on at-home sales. Source: Illinois Home Repair and Remodeling Act, 815 ILCS 513.