Vermont Trade Licenses: Residential Contractor Registration ($75 or $250), Electrician and Plumber Licenses and HVAC Certifications
Vermont Trade Licenses: Residential Contractor Registration ($75 or $250), Electrician and Plumber Licenses and HVAC Certifications
If you are looking for a Vermont contractor license, the first thing to know is that the state does not issue a general contractor license. The rules depend on the type of work, who the customer is, and how much the job costs. Residential contractors register with the Office of Professional Regulation (OPR). Electricians and plumbers are licensed by the Division of Fire Safety, not OPR. If you searched for a Vermont HVAC license, there isn't one. Heating, cooling and refrigeration work fall under specific electrical and plumbing specialty licenses, plus separate fire safety certifications for some equipment.
Informational only: This guide is general information, not legal or tax advice. Fees, thresholds and rules change, and the agencies named here make the final determination for your situation. For complex situations, such as mixed residential and commercial work, multiple business entities, or questions about how sales tax applies to your jobs, consult a qualified Vermont attorney or CPA.
Step one: Register the business
Vermont has no general statewide business license. Most businesses go through three layers of paperwork:
- Entity filing. File Articles of Organization for an LLC or Articles of Incorporation for a corporation with the Secretary of State's Business Services Division. The LLC filing fee is $155. Filing through the Online Business Service Center is normally processed in less than 1 business day, and mailed filings take 7 to 10 business days. The Secretary of State publishes no expedited fee, and online filing costs no more than mail, so online is the fast path.
- Tax account. Open a Department of Taxes account if your business collects sales or meals and rooms tax, or withholds from employee pay. Register at tax.vermont.gov.
- Trade-specific credentials. Add the registration or license that matches your work. The sections below cover each one.
Before you file, search the Vermont business search to confirm your name is available. LLC names must end in Limited Liability Company, LLC, Ltd. Liability Co., Limited Company, LC or Ltd. Co. If you need time to finish paperwork, you can reserve a name for $25 with an Application for Reserved Name.
Which rules apply to your job
Work through these questions in order before you bid a job:
- Is the work on a dwelling or a building with four or fewer dwelling units? If not, the residential registration rule does not apply. Vermont has no general contractor license for commercial work, though specific trade licenses may still apply.
- Is the job over $10,000 including labor and materials? If so, register with OPR before contracting directly with the homeowner. A job at exactly $10,000 needs a check with OPR.
- Does any part involve electrical or plumbing work? That work needs the matching Division of Fire Safety license unless an owner exception applies.
- Does any part involve heating, cooling, refrigeration, oil burners or gas? Those tasks need the specific credential listed in the HVAC table below.
- Are you working inside a license you already hold? Licensed trades working within their license are exempt from contractor registration.
- Does your town require a local license or permit? Towns, cities and villages handle that, so check with the local clerk.
Residential contractor registration: $75 or $250
Since April 1, 2023, residential contractors must register with OPR before contracting directly with a homeowner for residential construction. The requirement comes from 26 V.S.A. chapter 106 (Act 182 of 2022). It applies to contracts over $10,000 including labor and materials. OPR's FAQ words the threshold as $10,000 or more, so if a job lands at exactly $10,000, confirm with OPR before you assume you are under the line.
The law defines residential work as work on a dwelling or a building with four or fewer dwelling units. It covers painting, paving, roofing, weatherization, and heating, plumbing, solar and electrical work.
| Registrant | Registration fee | Renewal |
|---|---|---|
| Individual (self-employed, no employees) | $75 | Biennial (every two years) |
| Business organization | $250 | Biennial (every two years) |
Registered contractors must carry general liability insurance of $1,000,000 per occurrence and $2,000,000 aggregate.
Who does not need to register
- Landscaping work.
- Work on a structure that is not attached to a residence.
- Appliance and equipment installation.
- Work performed by employees of a registered business.
- Subcontractors hired by another contractor.
- Licensed electricians and plumbers working within their license.
Contract rules
When the estimate exceeds $10,000, you need a written contract before taking any deposit or starting work. The contract must state the price, start and completion dates, the scope and materials, and the change-order process. Under a maximum-price contract, a down payment is capped at half the labor or half the materials, whichever is greater. Any business name used on a contract must be registered with both the Secretary of State and OPR.
Separately, home and land improvement fraud under 13 V.S.A. 2029 covers contracts of $1,000 or more, including tree work, paving and excavation. That line is far lower than the registration threshold, so smaller jobs still carry fraud exposure even when registration does not apply.
Handyman work
The categories covered in this guide do not include a general handyman license. A handyman doing residential work over $10,000 falls under the registration rule above. Any electrical or plumbing portion must be performed under the correct license, and handyman labor is not subject to sales tax. Because scope lines blur on handyman jobs, confirm with OPR whether a particular project counts as residential construction before you sign.
Sales tax on your jobs
Vermont's 6% sales tax applies to goods and a short list of items, and it reaches almost no services. Labor by handymen, lawn care, towing and junk haulers is not taxed. Contractors pay sales tax on the materials they buy and do not charge it to customers. The resale exemption works through Form S-3, which the buyer gives the seller, not through your sales tax account number. Questions about how this applies to your business belong with the Department of Taxes or a CPA.
Electrician licenses
Electricians are licensed by the Division of Fire Safety under 26 V.S.A. chapter 15, not by OPR. No license is required for electrical work in a building with no more than two dwelling units, or for an owner working in an owner's freestanding single-unit home. Otherwise, the license levels and fees are:
| License | Fee | Term |
|---|---|---|
| Master electrician | $150 | 3 years |
| Journeyman electrician | $115 | 3 years |
| Type-S specialist (per field) | $115 | 3 years |
Working without the required license carries a fine of up to $500 per offense. Confirm current fees and renewal terms with the Division of Fire Safety before you apply.
Plumber licenses
Under 26 V.S.A. chapter 39, all plumbing and specialty work must be done by a licensed plumber unless the work falls under a listed exception. One common exception is an owner working in an owner-occupied freestanding single-family home. The Division of Fire Safety licenses plumbers at these levels:
| License | Fee | Term |
|---|---|---|
| Master plumber | $120 | 2 years |
| Journeyman plumber | $90 | 2 years |
| Plumbing specialist | $50 | 2 years |
Unlicensed plumbing work can draw a fine of up to $1,000. Verify current amounts with the Division of Fire Safety.
HVAC: no license, but specific credentials
Vermont does not have an HVAC license. Instead, each type of HVAC work is covered by a particular credential. Use this table to find the right one:
| Type of work | Credential required |
|---|---|
| Refrigeration and air conditioning | Type-S electrical specialty (C3) |
| Heating system work | Plumbing specialist license (P2) |
| Oil burner installation | Division of Fire Safety certification (NORA Silver, or Bronze for limited) |
| Gas installation | Division of Fire Safety gas certifications |
| Chimney sweeping | T4 certificate |
| Solar installation | Electrical G7s |
Many HVAC jobs mix these categories, so one job can require more than one credential. Ask the Division of Fire Safety which credentials a specific job needs before you start.
Local rules: towns and cities
Vermont's 14 counties have no licensing or zoning role. Zoning and local business licenses come from towns, cities and villages, and they differ widely from one community to the next. Before you take work in a new town, check with the town or city clerk for local licenses, permits and zoning requirements.
Entity and annual tax obligations
If you form an LLC or corporation to hold your trade license and contracts, keep these recurring obligations in mind:
- Registered agent. Every Vermont LLC must continuously maintain an agent for service of process with a name, email and address on file, plus a designated office. The agent must be a Vermont-resident individual or a business with a place of business in Vermont and authority to do business there. A Statement of Change of agent costs $35 for an LLC and $25 for a corporation.
- LLC annual report. The fee is $45, due by March 31 for a calendar-year LLC.
- Corporation annual report. The fee is $60, due by March 15 for a calendar-year corporation.
- Minimum entity tax. S corporations, partnerships and LLCs taxed as partnerships owe a $250 minimum annual entity tax, paid with Form BI-471 or BI-476. A disregarded single-member LLC does not owe it.
- Missed reports. A missed annual report terminates the entity. Vermont does not use administrative dissolution, and a terminated entity can be reinstated.
Official resources
- Secretary of State, Business Services Division: sos.vermont.gov/business-services
- Online Business Service Center: bizfilings.vermont.gov
- Department of Taxes: tax.vermont.gov
- Vermont Small Business Development Center: vtsbdc.org
- SBA Vermont district office: sba.gov/district/vermont
This guide does not list direct links for OPR or the Division of Fire Safety. Search each agency by name to find its current contact page and confirm registration and license requirements before you file or sign a contract.