Handyman License Requirements in Chattanooga, TN
Chattanooga businesses need a city business license from the City Treasurer's Office (online; $15 initial registration; under $100,000 gross renews as a $15 minimal license, $100,000+ files business tax through TNTAP) plus a Hamilton County business license. Residential building permits for new homes, ADUs or footprint changes require a Tennessee contractor license (BC, BC-A or BC-A/r), workers' comp proof or exemption, and a Tennessee business license.
Chattanooga requirements
Chattanooga businesses need a city business license from the City Treasurer's Office (online; $15 initial registration; under $100,000 gross renews as a $15 minimal license, $100,000+ files business tax through TNTAP) plus a Hamilton County business license. Residential building permits for new homes, ADUs or footprint changes require a Tennessee contractor license (BC, BC-A or BC-A/r), workers' comp proof or exemption, and a Tennessee business license.
Source: chattanooga.gov · chattanooga.gov · checked November 10, 2026
Local business license
Required
- Name: City of Chattanooga business license (TN business tax): minimal business license if gross under $100,000, standard license at $100,000+ (state business tax filed via TNTAP)
- Office: City of Chattanooga Treasurer's Office (Dept. of Finance & Administration); county license from Hamilton County Clerk
- Fee: $15 minimal-license renewal (under $100,000 gross); standard license tax via TN Dept. of Revenue
"businesses that gross under $100,000 will be converted to a minimal business license and the renewals will be processed through the City/County... pay the fee of $15... For businesses grossing $100,000 or more the license will remain a standard license"
Source: chattanooga.gov · checked November 10, 2026
Local contractor or handyman license
Depends
- Name: State of Tennessee contractor license required to pull a city residential building permit
- Applies when: Today's residential permit page does not mention a 'Registered Licensed Contractor application'; that part of the stored claim could not be confirmed and is dropped.
- Trigger: Pulling a residential building permit for new single-unit construction, ADUs, or work altering the existing footprint
- Office: City of Chattanooga Land Development Office (OpenGov portal), zoning team (423) 643-5891
"We require a State of Tennessee Contractors License (BC, BC-A, or BC-A/r note that BC-A/r can only go up to 125K), Workman's Comp on a COI or an Exemption from the state, and A business license is required when pulling a permit"
Source: chattanooga.gov · checked November 10, 2026
County: Hamilton County
The Tennessee rule
Regulator: Tennessee Department of Commerce and Insurance - Tennessee Board for Licensing Contractors (contractors, home improvement contractors, limited licensed electricians (LLE), limited licensed plumbers (LLP)); Division of Fire Prevention (state electrical permits/inspections where used)
Contractor license required prior to contracting/bidding 'projects $25,000 or more' (i.e., under $25,000 = no state contractor license; $25,000 is NOT exempt). Masonry: $100,000 or more. Home Improvement license (in the 9 adopting counties only): residential remodeling 'from $3,000 to $24,999' / '$3,000 to less than $25,000'. Outside those counties, residential work under $25,000 needs no state general license. Subcontractors bidding to a contractor (not owner) for painting, drywall, carpentry, landscaping need no contractor license; electrical, mechanical, plumbing, HVAC, roofing subs need one over $25,000.
What counts toward it: labor+materials (Board: home improvement range is 'total cost or contract, including materials and labor'; LLP projects 'including materials and labor'; contractor monetary limit/permit value includes cost of land and profit for BC-A/r)
"A Home Improvement license is required for residential remodeling projects from $3,000 to $24,999; however, this only applies to the counties adopting the law. Currently, this applies to the following counties: Bradley, Davidson, Hamilton, Haywood, Knox, Marion, Robertson, Rutherford, and Shelby."
State registration
Home Improvement license (adopting counties): $10,000 surety bond (or cash/property bond or irrevocable letter of credit), general liability and workers' compensation insurance, photo ID/SSN, SOS registration if an entity, remodeling experience; initial application fee $250. Contractor license: Business & Law exam (+ trade exam for certain classifications), CPA-reviewed/audited financial statement (or, from July 1, 2026, surety bond of at least 50% of requested monetary limit), GL and workers' comp proof. LLE: trade exam, $50 application fee.
Source: tn.gov · checked November 2, 2026
Insurance and bond
Contractor: GL and workers' comp proof required; 'Bonding is not required to obtain a contractor's license' except new optional surety bond (>=50% of requested monetary limit) in lieu of financial statement from July 1, 2026.
What to do, in order
- Read the Tennessee rule and confirm with Tennessee Department of Commerce and Insurance - Tennessee Board for Licensing Contractors (contractors, home improvement contractors, limited licensed electricians (LLE), limited licensed plumbers (LLP)); Division of Fire Prevention (state electrical permits/inspections where used).
- Line up the Chattanooga items listed on this page.
- Get your insurance and rate in place before the first paid job.
Nearby places
Rules change. This page shows what official sources said on the dates above. It is not legal advice.
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