Michigan law requires most residential contractors to be licensed through LARA (Department of Licensing and Regulatory Affairs). Despite this, unlicensed contractors remain common, and homeowners who hire them often have no legal recourse when projects go wrong. Here's exactly how to verify any contractor in under 3 minutes.
Who Needs a License in Michigan?
In Michigan, a residential builder's license is required for any contractor performing work on a residential structure with a combined value exceeding $600. This covers general contractors, builders, and specialty trades including electricians, plumbers, and HVAC technicians — who also need their own specialty license. See the full licensing requirements at michigan.gov/lara.
Step-by-Step: How to Verify on LARA
- Go to michigan.gov/lara License Lookup and click on Residential Builders.
- Under "License Type," select "Residential Builder" or the relevant specialty.
- Enter the contractor's name or license number.
- Confirm the license is Active and not expired, suspended, or revoked.
- Check for any disciplinary actions — complaints, fines, or license suspensions are public record.
What the License Number Should Look Like
Michigan residential builder licenses begin with "2102" and are followed by 6 digits (e.g., 2102012345). Specialty licenses have different prefixes. If a contractor gives you a number that doesn't match, or says their license is "pending" or "applied for," do not sign a contract.
What to Do if They're Not Licensed
An unlicensed contractor in Michigan cannot legally file a lien, which sounds like a benefit, but it also means they can't be held to the same legal standards and you can't use state arbitration to resolve disputes. If their work causes damage, your homeowner's insurance may deny the claim. Walk away.
Also Check: Insurance
Licensing and insurance are separate requirements. Always request a Certificate of Insurance (COI) showing current general liability coverage (minimum $1M) and workers' comp. Have the certificate holder list you by name. Call the insurance company directly to confirm it's active.
RenoSpend stores license and insurance verification documents for every contractor you work with — so you always have proof on file.
