Michigan licensing for homeowners

Who must be licensed in Michigan

Michigan licenses residential builders and maintenance and alteration contractors through the Department of Licensing and Regulatory Affairs (LARA) for work on residential structures, alongside separate licences for electrical, plumbing, and mechanical contractors. A residential builder licence is not interchangeable with a maintenance and alteration (M&A) contractor licence — the latter is scoped to remodeling and repair rather than new residential construction. Trade work must be performed by the appropriately licensed contractor or individual. Detroit and several cities add local business licensing, but the state LARA lookup is the first stop for homeowners hiring a firm that advertises statewide remodeling.

Licensing boards and lookups

Licence classes and what they authorize

• Residential builder — Residential builder licence

  Construction of new residential structures and related work per LARA rules.

• M&A contractor — Maintenance & alteration contractor

  Remodeling, repair, and alteration of existing residential buildings.

• Electrical contractor — Electrical contractor / journeyman

  Electrical work under Michigan Electrical Code enforcement.

• Plumbing contractor

  Plumbing and gas piping work statewide.

• Mechanical contractor

  HVAC and refrigeration installation and service.

Verify a licence in about two minutes

1. Open Michigan LARA License Lookup (Accela portal).
2. Search by licence number or legal business name.
3. Read licence type: Residential Builder vs M&A vs trade contractor.
4. Confirm licence status is Active and note expiration.
5. Match the entity on the licence to the company on your contract — Michigan allows DBA names but the licence ties to a legal person or entity.

Insurance and bond minimums

Residential builders and M&A contractors must maintain general liability insurance minimums filed with LARA. Trade contractors carry insurance per their programme. Workers' compensation is required when employees are used. Verify COI directly with the carrier.

Who issues permits

Local building departments enforce the Michigan Residential Code and Michigan Building Code. Permits are municipal; state licences authorize the contractor to perform the work class.

Homeowner permits — can you pull one, and should you

Owner-occupiers may pull permits in many cities for work on their own home with an owner-builder affidavit. Electrical, plumbing, and mechanical work still requires state-licensed contractors in most cases.

Deposits, cancellation rights, and liens

Deposit rules

Michigan's Consumer Protection Act prohibits unfair practices but does not set a California-style deposit cap. LARA-licensed contractors must use written contracts on residential work over statutory minimums — include clear progress schedules.

Rescission / cooling-off

Home solicitation sales may include a three-day cancellation right when federal cooling-off rules apply.

Mechanic's lien timeline

Michigan Construction Lien Act (MCL 570.1101 et seq.) requires notice within 90 days of last furnishing for many residential subcontractors and filing within 120 days — strict compliance determines enforceability.

Residential builder contracts must include required LARA disclosures — missing language can affect enforcement.

Where to file a complaint

File licence complaints with LARA for builders and trade contractors. The Attorney General Consumer Protection Division handles deceptive practices. Local building officials enforce code violations.

If you hire someone unlicensed

Contracting without a required LARA licence can block permits and void warranty promises. Insurance may deny fire or water claims involving unlicensed electrical or plumbing work. Liens can still cloud title if notice rules were followed.

Which trades need a licence here

Reciprocity

Michigan grants limited reciprocity for electrical and other trades with states meeting comparable standards — residential builder reciprocity is narrow; plan to sit for Michigan exams or provide documented experience.

Cities and counties with an extra layer

Detroit, Grand Rapids, and Ann Arbor require city business licences and may inspect contractor registration separately from LARA. Lead-safe renovation rules apply statewide to pre-1978 housing disturbance.

Related guides

Common questions — Michigan

Sources

• Michigan Occupational Code — Residential builders
• MCL 570.1101 et seq. — Construction lien act
• Michigan LARA License Lookup

Content reviewed 2026-10-06. Statutes and board URLs were checked at publication; confirm current text on the official site before relying on it in a dispute.