Step by Step Guide To Getting A Michigan Residential Builders License

In Michigan, any residential construction, alteration, or remodeling project valued at over $600 (labor and materials combined) legally requires a license issued by LARA (Department of Licensing and Regulatory Affairs).

Step-by-Step Licensing Process

  1. Complete 60 Hours of Pre-Licensure Education:Required by LARA before applying.

You must complete a 60-hour pre-licensure course through a LARA-approved provider. These courses can be taken online or in person.

  • 6 hours: Michigan Residential Code

  • 6 hours: MIOSHA Construction Safety Standards

  • 6 hours: Business Management, Estimating & Job Costing

  • 6 hours: Design & Building Science

  • 6 hours: Contracts, Liability & Risk Management

  • 6 hours: Marketing & Sales

  • 6 hours: Project Management & Scheduling

  • 18 hours: Approved elective topics

2. Submit Your LARA Application:Apply online via Accela Citizen Access portal.

Once you receive your completion certificate from your course provider, submit your official Individual Residential Builder License Application to LARA.

  • Attach your 60-hour course completion certificate.

  • Submit a copy of your driver's license or state ID.

  • Pay the $195 initial application fee.

  • Answer questions verifying "good moral character" (background check declaration).

3. Receive Authorization to Test (ATT):LARA processing time: 2-4 weeks.

LARA reviews your application. Once approved, they will email you an Authorization to Test letter, which allows you to schedule your state exam.

4. Pass the PSI Builder Exam:Closed-book, computer-based exam.

Schedule your exam through PSI Services (the state's testing vendor) at an approved testing center in Michigan.

  • Part 1 — Business & Law: 50 questions (75 minutes)

  • Part 2 — Trade & Practice: 110 questions (180 minutes)

  • Passing Score: You must score at least 72.5% (116/160 total questions correct across both portions).

5. Receive Your License & Register Your Business:Final issuance.

Upon passing, PSI automatically sends your scores to LARA. Your hard-copy license will arrive in the mail within 1–2 weeks. Before taking on work, register your LLC or Corporation with the state and secure general liability insurance.

Total Cost Breakdown

Estimated Cost

60-Hour Pre-Licensure Course

$250 – $500

Varies by provider (online vs. in-person classroom)

LARA Application Fee

$195

Non-refundable initial license fee

PSI Examination Fee

$117

Paid directly to PSI upon scheduling

Code Book & Study Materials

$100 – $200

2015 Michigan Residential Code book (optional but recommended)

Total Initial Investment

$662 – $1,012

Total upfront cost to become licensed

Core Requirements & Ongoing Maintenance

  • Age & ID: Must be at least 18 years old with a valid state ID or Social Security Number.

  • Renewal Cycle: Licenses renew every 3 years (by May 31st).

  • Continuing Education (CE): You must complete 21 hours of CE during your first 6 years of licensure (or 3 hours per renewal period