North Carolina electrical license requirements and insurance
To work for yourself as an electrician in North Carolina, you need the Limited (L) electrical contracting license license. North Carolina has 4 electrical license types, and which one you need depends on the work you take on. The state sets no minimum liability insurance, and workers' comp is required once you have three or more employees on a regular basis.
1Who needs an electrical license in North Carolina? What is this?
Limited (L) electrical contracting license: an electrical contractor whose single jobs stay small
| License | Who needs it | What it covers |
|---|---|---|
| Limited (L) electrical contracting license | An electrical contractor whose single jobs stay small | A single electrical contracting project worth no more than $60,000, where the equipment or installation in the contract is rated at no more than 600 volts |
| Intermediate (I) electrical contracting license | An electrical contractor taking mid-sized jobs | A single electrical contracting project worth no more than $150,000. The 600 volt cap that applies to Limited does not apply here |
| Unlimited (U) electrical contracting license | An electrical contractor who wants no ceiling on job size | Any electrical contracting project, whatever it is worth |
| Special Restricted classifications | Someone who only does one narrow kind of electrical work and does not want a full license | One limited phase of electrical contracting. You may not work outside the class you hold |
2Who issues electrician licenses in North Carolina? What is this?
North Carolina State Board of Examiners of Electrical Contractors issues electrical licenses in North Carolina.
See how this compares in every state: How to check a contractor's license, state by state
| Name | North Carolina State Board of Examiners of Electrical Contractors |
|---|---|
| Website | ncbeec.org |
| Look up a license | arls-public.ncbeec.org |
| The law | North Carolina General Statutes Chapter 87, Article 4 (G.S. 87-39 and following) |
| The rulebook | Title 21 NCAC Chapter 18B |
This is not the same board as the one for plumbing and heating contractors. Electrical has its own board, its own exam and its own renewal date.
·2 official pages
3How to become an electrician in North Carolina What is this?
North Carolina has 4 licenses that matter to an electrician: Limited (L) electrical contracting license, Intermediate (I) electrical contracting license, Unlimited (U) electrical contracting license, Special Restricted classifications. Each is below, with what you need before you apply.
| License | Exam |
|---|---|
| Limited (L) electrical contracting license | Yes, a board exam. You apply, pass, then apply again to obtain and activate the license |
| Intermediate (I) electrical contracting license | Yes, a board exam |
| Unlimited (U) electrical contracting license | Yes, a board exam |
| Special Restricted classifications | — |
4How much does an electrical license cost in North Carolina? What is this?
The government fees on this page add up to about $225 in North Carolina. Add insurance, tools, and a vehicle to get the real number.
| License | Late renewal | Yearly license fee | Application and exam | Replacement license | Reviewing your exam | Proving your license to someone |
|---|---|---|---|---|---|---|
| Limited (L) electrical contracting license | $25 | $100 | $125 | $15 | $25 | $25 |
| Intermediate (I) electrical contracting license | $25 | $150 | $125 | — | — | — |
| Unlimited (U) electrical contracting license | $25 | $200 | $125 | — | — | — |
| Special Restricted classifications | — | $100 | $125 | — | — | — |
Added up
| Government fees, added up | $225 |
|---|
Government fees only, for the smallest license. Intermediate is $150 a year and Unlimited $200. Does not include insurance premiums, tools, a vehicle, or city permits.
5How much electrical contractor insurance do you need in North Carolina? What is this?
North Carolina sets no minimum liability insurance for this license. Customers and general contractors usually ask for $1,000,000 anyway. Workers' comp is required once you have three or more employees on a regular basis.
| Minimum liability insurance | None required by the state |
|---|---|
| Type of policy | None required by the state to hold the license |
| Who this applies to | Nobody. The board's fee and licensing pages set no insurance minimum for electrical contractors. Customers, builders, and some city permit offices will still ask for a certificate |
| Who must be named on the certificate | None |
| Workers' comp required? | Yes, once you have three or more employees on a regular basis |
| Who can opt out | Corporate officers count as employees toward the three but can exclude themselves from the policy in writing. Sole proprietors, partners, and LLC members are not counted and are not covered unless they choose to add themselves |
·2 official pages
6Does North Carolina check your credit for an electrician license? What is this?
North Carolina does not check your credit for this license.
| Credit score you need | None found |
|---|---|
| Proof a surety would bond you | For an Intermediate or Unlimited license you must show a statement of bonding ability before the board will activate it. That is a surety's word that it would bond you, which in practice means your finances are looked at, even though the board sets no net worth figure and asks for no credit score |
There is no credit check and no net worth test written into the board's pages. The bonding ability statement is the only money test, and it does not apply to a Limited license
7Does an electrician need a bond in North Carolina? What is this?
North Carolina requires a bond. A bond is a promise, backed by an insurance company, that customers can be paid if you do not finish the job.
| Does the state require a bond? | Yes |
|---|---|
| Amount | Not listed yet |
| Who needs it | The Intermediate and Unlimited classifications only. A Limited license needs none |
| What you have to show |
|
The board asks for this to activate the license, not to sit the exam. Cities may also ask for a bond before they let you pull permits
8Federal rules that also apply What is this?
Rules from the US government that apply to an electrician in North Carolina on top of the state's own.
| Federal license | None. There is no federal license or card for electrical work |
|---|---|
| Lead-safe certification |
|
9Where must a North Carolina electrician show the license number? What is this?
In North Carolina: we found no rule saying where an electrical contractor's license number has to appear. The board's licensing page sets none.
| The rule | We found no rule saying where an electrical contractor's license number has to appear. The board's licensing page sets none |
|---|---|
| The optional patch | The board sells an iron-on Qualified Individual patch, 3.5 inches across, for $6. It is offered, not required |
Ask your city building department. Some of them ask for the number on permits and on vehicles even where the state does not
·2 official pages
10Does an electrician charge sales tax on labor in North Carolina? What is this?
Whether North Carolina taxes your labor, your materials, or neither.
See how this compares in every state: Can you charge sales tax on labor? The rule in 25 states
| Repairs and service calls |
|
|---|---|
| Homes versus businesses | No difference. A home and a business are taxed the same way |
| New buildings and additions |
|
| Materials on work that becomes part of the building | You are the consumer. Pay tax at the supply house and build it into your price. Keep a Form E-589CI (Affidavit of Capital Improvement) on file for each job |
| Materials on taxable repairs | You charge the customer tax on the parts as part of the taxable bill. Whether you can buy those parts tax-free with a resale certificate (Form E-595E) was not confirmed by the state's page |
| Jobs that are part repair, part new work | If the taxable repair part of a capital improvement job is 25 percent or less of the contract price, treat the whole job as a capital improvement. If it is more than 25 percent, charge tax on the repair part |
| Tax rate | 4.75 percent state plus local rates, for a total of 6.75 to 8.25 percent depending on the county |
·5 official pages
- ncdor.gov/taxes-forms/sales-and-use-tax/taxable-items/real-property-contracts/services-real-property-taxability-chart
- ncdor.gov/taxes-forms/sales-and-use-tax/taxable-items/repair-maintenance-and-installation-services-and-other-repair-information
- ncdor.gov/taxes-forms/sales-and-use-tax/real-property-contracts
- codes.findlaw.com/nc/chapter-105-taxation/nc-gen-st-sect-105-164-4h/
- ncdor.gov/taxes-forms/sales-and-use-tax/sales-and-use-tax-rates/current-sales-and-use-tax-rates
11Getting paid: lien and notice deadlines for a North Carolina electrician What is this?
If you are not paid in North Carolina, a lien on the property is your backstop, but only if your notice goes out on time: within 15 days after your first day of furnishing labor or materials (first day on site March 1 means notice by March 16). Miss it and your lien ranks behind any mortgage recorded before you file, and on some projects you cannot perfect a lien at all. Send it through the lien agent's approved website, certified mail, email, fax, or hand delivery.
- Day 0Your first day on the job
The clock starts here.
- Day 120File your lien
File a Claim of Lien on Real Property with the clerk of superior court in the county where the property is, within 120 days after your last day of furnishing labor or materials (last day April 1 means file by July 30)
Each day count is counted from the day the rule beside it names, which is not always the same day. Read the sentence under each one.
| Who has to send a notice |
|
|---|---|
| Send your notice to the lien agent by |
|
| Notice when you are a subcontractor | If you were hired by the contractor, not the owner, you serve a Notice of Claim of Lien upon Funds on the person who owes your customer money. The statute sets no deadline for it, but nothing is protected until it is served. |
| File your lien by | File a Claim of Lien on Real Property with the clerk of superior court in the county where the property is, within 120 days after your last day of furnishing labor or materials (last day April 1 means file by July 30) |
·5 official pages
- codes.findlaw.com/nc/chapter-44a-statutory-liens-and-charges/nc-gen-st-sect-44a-11-1/
- codes.findlaw.com/nc/chapter-44a-statutory-liens-and-charges/nc-gen-st-sect-44a-11-2/
- codes.findlaw.com/nc/chapter-44a-statutory-liens-and-charges/nc-gen-st-sect-44a-12/
- codes.findlaw.com/nc/chapter-44a-statutory-liens-and-charges/nc-gen-st-sect-44a-19/
- ncleg.gov/EnactedLegislation/Statutes/HTML/ByArticle/Chapter_44A/Article_2.html
12How do you renew an electrical license in North Carolina? What is this?
The Limited (L) electrical contracting license renews every year. The license expires one year after the day it was issued, and the board sends a renewal notice about 60 days before.
| License | Renewal |
|---|---|
| Limited (L) electrical contracting license | Every year. The license expires one year after the day it was issued, and the board sends a renewal notice about 60 days before |
| Intermediate (I) electrical contracting license | Every year, one year from the day the license was issued |
| Unlimited (U) electrical contracting license | Every year, one year from the day the license was issued |
| Special Restricted classifications | Every year, one year from the day the license was issued |
Renewal fees are in what the license costs. The official page for each license is linked under how you get it.
13What catches people out in North Carolina What is this?
The things people get wrong or do not expect about North Carolina, in a few sentences.
- Electrical has its own board. Plumbing, heating and fire sprinkler share one board; electrical contractors answer to a different one, with different rules and a different renewal date.
- Your license class is set by the size of a single job, not by your skill. Limited stops at $60,000, Intermediate at $150,000, Unlimited has no ceiling.
- Limited carries a second limit that catches people out. The equipment in the contract cannot be rated above 600 volts, whatever the job is worth.
- There are seven Special Restricted classes for people who only do one thing, such as fire alarm, swimming pools, signs or elevators. Each costs $100 a year.
- Licenses expire one year after the day they were issued, not on a fixed date, so no two contractors renew together.
- The state sets no insurance minimum to hold the license. Customers, builders and city permit offices will still ask for a certificate.
14Where these numbers come from
The labels under each table are explained on how to read a page.
- ncbeec.org/licensing/
- ncbeec.org/fees-services/
- ncbeec.org/g-s-87-43-electrical-contractors-licensing-law/
- ncbeec.org/
- ncbeec.org/title-21-ncac-18b/
- ic.nc.gov/wcinsrqmt.html
- epa.gov/lead/renovation-repair-and-painting-program-contractors
- ncdor.gov/taxes-forms/sales-and-use-tax/taxable-items/real-property-contracts/services-real-property-taxability-chart
- ncdor.gov/taxes-forms/sales-and-use-tax/taxable-items/repair-maintenance-and-installation-services-and-other-repair-information
- ncdor.gov/taxes-forms/sales-and-use-tax/real-property-contracts
- codes.findlaw.com/nc/chapter-105-taxation/nc-gen-st-sect-105-164-4h/
- ncdor.gov/taxes-forms/sales-and-use-tax/sales-and-use-tax-rates/current-sales-and-use-tax-rates
- codes.findlaw.com/nc/chapter-44a-statutory-liens-and-charges/nc-gen-st-sect-44a-11-1/
- codes.findlaw.com/nc/chapter-44a-statutory-liens-and-charges/nc-gen-st-sect-44a-11-2/
- codes.findlaw.com/nc/chapter-44a-statutory-liens-and-charges/nc-gen-st-sect-44a-12/
- codes.findlaw.com/nc/chapter-44a-statutory-liens-and-charges/nc-gen-st-sect-44a-19/
- ncleg.gov/EnactedLegislation/Statutes/HTML/ByArticle/Chapter_44A/Article_2.html