Published: September 8, 2026 | Updated: September 8, 2026
Illinois has no statewide contractor license. Chicago issues its own, through the Department of Buildings, in five classes based on project size. You can check any contractor’s license status for free, in about five minutes, before you sign anything. That one step catches most of the problems in this guide.
Chicago Licenses Contractors. Illinois Does Not.
This confuses a lot of homeowners. Search “Illinois general contractor license” and you won’t find one. It doesn’t exist. Illinois only licenses two trades at the state level: plumbing and roofing. Both go through the Illinois Department of Financial and Professional Regulation.
Everything else is licensed city by city. In Chicago, that means the Department of Buildings decides who can legally take payment for construction, renovation, or demolition work. A contractor who says “Illinois doesn’t require a license for this” is either wrong or hoping you won’t ask twice.
Chicago requires a license before a contractor can even submit a bid on most residential renovation work. Not just before starting the job. Before the estimate.
What a Licensed General Contractor’s License Class Actually Means
A Chicago general contractor license comes in five classes: A, B, C, D, and E. The letter isn’t just paperwork. It caps what the contractor can legally take on.
- Class A covers unlimited project value, including complex demolition. It carries the highest insurance requirement.
- Class B and Class C cover mid-size projects. Most established remodeling firms hold one of these.
- Class D and Class E cover smaller jobs. Class E excludes demolition entirely and caps projects around $500,000.
A Class E contractor bidding on a project above that cap is a real problem. It’s not a technicality. It can affect your permit approval. It can also affect your insurance if something goes wrong, or your options if you later need a different contractor. Ask which class a contractor holds. Confirm it covers your project’s size before you sign.
How to Verify a Licensed General Contractor in Chicago
Start with the City of Chicago’s Contractor License Lookup. It’s free and public. Search the business name. You’ll see the license status, the class, and whether it’s expired or inactivated.
Do this before the first phone call ends. Not after a deposit changes hands.
A few things to check on the same visit:
- Match the business name on the license to the name on your written estimate. Not a similarly-named affiliate.
- Check the status carefully. Active, expired, and inactivated are three different things. A lapsed license often means a company changed hands or fell behind on renewal.
- If your project touches roofing or plumbing specifically, check that trade’s separate state license through IDFPR. Chicago’s general contractor license does not automatically cover those two trades.
Licensed Doesn’t Always Mean Insured. Ask Both Questions.
A license and a certificate of insurance are two separate documents. A contractor can hold a valid Chicago license and still let their insurance lapse. Ask to see a current certificate of insurance before work starts, not after. It should name the actual company doing the work, not a parent company or an affiliate you haven’t vetted.
For larger projects, ask about bonding too. A bond gives you a path to recover costs if the contractor doesn’t finish the job or does it wrong. It’s a separate protection from insurance, and a licensed contractor working on a sizable remodel should be able to explain both without hesitation.
Red Flags That Mean Walk Away
A few patterns show up again and again in complaints against unlicensed or under-licensed contractors in Chicago:
- Pressure to pay in full, or pay a large deposit, before any permit has been pulled.
- A business name that doesn’t match what comes up in the license lookup.
- A contractor who can’t name their own license class when you ask directly.
- No certificate of insurance, or one that lists a different company than the crew showing up.
- A verbal-only agreement for work that clearly needs a permit — additions, structural changes, most kitchen and bathroom jobs involving plumbing or electrical moves.
No single flag proves a contractor is unlicensed. But this is the exact pattern Illinois’s Home Repair and Remodeling Act consumer guidance warns homeowners to watch for. Two or three of these together are reason enough to keep looking.
Why Older Chicago Buildings Make This Harder
Licensing gets more complicated once you factor in Chicago’s housing stock.
Two-flats in neighborhoods like Logan Square and Portage Park often still run on original electrical service. That service usually needs an upgrade before the city approves a permit for a kitchen remodel or an addition. Confirm whether your contractor is licensed to pull that electrical permit directly, or whether they plan to subcontract it — and if so, to whom.
In condo and high-rise buildings around Streeterville and Lakeview, the HOA or condo board usually requires proof of insurance. Some boards ask for a copy of the license too. Clear this before you schedule a start date. Don’t wait until the contractor is on-site and the board says no.
In landmark districts like Beverly, exterior work often needs a separate landmark-preservation sign-off, on top of the standard building permit. That approval has nothing to do with the contractor’s license class. Skipping it can stall a project no matter how qualified the crew is.
How Permits and Licenses Work Together
A license and a permit are not the same thing, and mixing them up costs homeowners time.
The license belongs to the contractor. It says they’re legally allowed to do this kind of work in Chicago. The permit belongs to the project. It says the city has reviewed and approved this specific job, at this specific address.
A licensed contractor still has to pull the right permit before most renovation work starts. Kitchen and bathroom remodels that move plumbing or electrical lines almost always need one. Additions always do. Even some cosmetic work can trigger a permit if it touches structural elements.
Ask your contractor two direct questions: which permits this project needs, and who is pulling them. A licensed contractor should have a clear answer to both. A vague answer is a warning sign. So is a suggestion to skip the permit to save time — that’s a bigger red flag than a missing license by itself. Unpermitted work can come back to bite you at resale, when a buyer’s inspector or attorney asks for permit records that don’t exist.
What This Looks Like for a Typical Chicago Project
Say you’re planning a kitchen remodel in a Chicago bungalow. Here’s a realistic order of operations:
- Get two or three written estimates from contractors you’ve already run through the license lookup.
- Confirm the license class covers a project of your size, and ask what permits the job needs.
- Request a certificate of insurance and confirm it names the company doing the work.
- If your building has an HOA or condo board, get their sign-off before scheduling a start date.
- Get the scope, materials, price, and timeline in writing before paying a deposit.
- Keep copies of the permit, the license lookup result, and the insurance certificate for your own records.
None of these steps takes long on its own. Together, they take less time than most homeowners spend picking out kitchen cabinets, and they matter more.
A Quick Pre-Signing Checklist
- Look up the license on the city’s Contractor License Lookup tool.
- Confirm the license class covers your project’s size and scope.
- Ask for a current certificate of insurance naming the actual company doing the work.
- For roofing or plumbing scope, verify the separate state license through IDFPR.
- Confirm any HOA, condo board, or landmark approvals your building or block requires.
- Get the scope, price, and timeline in writing before any deposit changes hands.
Where a Referral Network Fits Into This
Chicago General Contractor doesn’t perform the work itself. We connect homeowners with licensed, independent contractors in our referral network, and we route your project inquiry to one suited to the job.
That distinction matters here specifically. Using a referral service doesn’t change any of the steps above. The contractor who actually shows up still needs a valid Chicago license in the right class. You’re entitled to check that yourself, even after a referral service made the introduction. Vetting on our end is a starting point. It’s not a substitute for the five-minute lookup.
Want a fuller walkthrough of vetting a contractor beyond licensing — reviews, references, contract terms? Our broader guide to finding the right contractor for your home covers that ground. This article stays narrowly on the licensing question, since that’s the piece most homeowners skip.
FAQ
Does Illinois require a state license for general contractors?
No. Illinois licenses only plumbing and roofing contractors at the state level, through the Illinois Department of Financial and Professional Regulation. General contracting is licensed city by city. In Chicago, that’s the Department of Buildings.
How do I check if a Chicago contractor’s license is active?
Use the city’s free Contractor License Lookup. Search the business name. It shows current status, license class, and recent expirations.
What’s the difference between a Class A and Class E license in Chicago?
Class A allows unlimited project value and complex demolition, with the highest insurance minimum. Class E caps project value around $500,000 and excludes demolition entirely. Classes B, C, and D fall in between.
What happens if I hire an unlicensed contractor in Chicago?
You lose the protections tied to a licensed contractor. That includes recourse through the city’s complaint process, insurance coverage tied to the license, and inspection sign-off tied to a valid permit. Unlicensed work can also complicate a home sale or an insurance claim later.
Does a license cover insurance too?
No. A license and insurance are separate. A contractor can hold an active license and still have lapsed insurance. Ask for both, and confirm the insurance names the company actually doing your job.
If I use a referral network, do I still need to check the contractor’s license myself?
Yes. A referral network can vet contractors on intake, but the license lookup takes a few minutes and costs nothing. There’s no reason to skip it just because a contractor came through a referral.
Ready to start your project? Call +1 (708) 630-1131 or request a free, no-obligation quote. We’ll connect you with a licensed, vetted contractor from our Chicago network.
Reviewed by Donny Zanger, founder of Chicago General Contractor and BuildWrks. Chicago General Contractor uses a referral network of service providers and will dispatch your work order inquiry to an independent, licensed contractor to perform the work.
Get your free quote — no obligation. Explore our residential renovation services. Or plan ahead with our guides on what home renovation typically costs in Chicago and basement remodel costs.