Virginia Contractor License Classes A, B, and C: Which One Is Right for Your Business?

When you apply for a Virginia contractor license through DPOR, one of the first decisions you'll make is which license class to choose: Class A, Class B, or Class C.

Get it right and your business can take on the projects it's built for. Get it wrong and you could find yourself legally barred from work you've already bid - or paying to upgrade sooner than planned.

This guide breaks down the differences between each class, helps you figure out which one fits your business today, and explains what to expect as you grow.

Ready to Get Licensed? Explore Our Virginia Exam Prep

VA Class C: The Right Starting Point for Smaller Operations

Class C is the entry-level contractor license in Virginia. It's designed for businesses performing smaller projects and getting established in the market.

Class C is the right fit if:

• Your individual contracts will stay under $30,000
• Your total annual gross revenue won't exceed $250,000
• You have at least 2 years of experience in your specialty
• You're just launching your contracting business

Class C applicants do not need to pass the Business & Law examination, and there's no net worth requirement. You still need to complete the 8-hour pre-license education course and pass any required specialty exam for your classification.

One important note: Class C is a legitimate long-term option for many specialty contractors whose work naturally stays within those thresholds. Don't assume you need a higher class just because it sounds more established.

Class B: The Growth-Stage License

Class B unlocks mid-size contracts and is the right choice for contractors who are growing beyond the Class C limits or who anticipate taking on projects in the $30,000 to $150,000 range.

Class B is the right fit if:

• You expect single contracts between $30,000 and $150,000
• Your annual volume will reach or exceed $250,000 but stay under $1 million
• You have at least 3 years of documented experience in your specialty
• You can demonstrate $15,000 in net worth or equity

Class B applicants must pass the General and Virginia portions of the Business & Law examination. A Designated Employee - either a full-time employee or member of responsible management - must complete the exams and meet the experience and education requirements.

Class B is where many established contractors land and stay. The project size limits accommodate a wide range of commercial, residential, and specialty work.

VA Class A: No Limits on Project Size or Volume

Class A is the top tier of Virginia contractor licensing. It carries no monetary restrictions - no cap on individual contract size and no annual volume limit. If you're bidding on large public infrastructure projects, major commercial contracts, or any work that regularly exceeds $150,000 per contract, Class A is what you need.

Class A is the right fit if:

• You expect contracts of $150,000 or more
• Your annual volume will reach or exceed $1 million
• You have at least 5 years of experience in your specialty
• You can document $45,000 in net worth or equity

Class A applicants must pass the Advanced, General, and Virginia portions of the Business & Law examination - the most comprehensive exam requirement of any class. The Advanced portion tests deeper knowledge of financial management, business operations, and project administration.

How to Choose the Right Virginia Contractor License Class

Ask yourself four questions:

1. What's the largest single contract you expect to take on? If it's over $150,000, you need Class A. If it's between $30,000 and $150,000, Class B covers you. Under $30,000, Class C is sufficient.
2. What's your projected annual volume? Under $250,000 - Class C. $250,000 to $1 million - Class B. Over $1 million - Class A.
3. How many years of experience can your Qualified Individual document? You need 2 years for Class C, 3 for Class B, and 5 for Class A. If your QI doesn't yet have the experience, you'll need to apply for the class they qualify for now and upgrade later.
4. Can you meet the net worth requirement? Class B requires $15,000 in documented net worth or equity. Class A requires $45,000. Class C has no requirement. If your business is new and capital is limited, Class C may be the only option available to you right now.

What Changes Between Classes: The Business Exams

The biggest practical difference between the classes - beyond the project limits - is the Business & Law examination requirement.

Class C: No Business & Law exam required. Your Designated Employee or responsible management completes the 8-hour pre-license education course and that's it.

Class B: The General and Virginia portions are required. These cover licensing law, contract management, estimating, financial basics, and business operations as they apply to Virginia contractors.

Class A: The Advanced, General, and Virginia portions are all required. The Advanced exam goes deeper into financial management, project administration, and business operations. It's the most demanding of the three.

In addition to the Business & Law exam, most contractor classifications also require a specialty examination administered by PSI. That requirement is the same regardless of your license class.

Can You Upgrade Your License Later?

Yes. Virginia contractors can upgrade their license class as their business grows. To move from Class C to Class B, or Class B to Class A, you'll need to meet the experience, net worth, and examination requirements for the higher class at the time of your upgrade application.

The upgrade process requires submitting a Change in License Classification Application to DPOR along with the supporting documentation for the new class. Plan ahead - processing typically takes around 30 days from a complete submission.

Learn all the ins and out of becoming a licensed contractor in Virginia in our blog!

Common Mistakes to Avoid

Applying for a higher class than you qualify for

If your QI doesn't have the required years of experience, or your business can't document the net worth requirement, your application will be incomplete. Apply for the class you can qualify for now.

Applying for a lower class to avoid the exam

Some contractors choose Class C specifically to skip the Business & Law exam. That's fine if your project size genuinely fits - but if you're regularly bidding projects above $30,000, working outside your class limits puts your license at risk.

Forgetting the financial documentation

Class A and Class B applicants must submit a Financial Statement Form, CPA review or audit, or a Surety Bond Form with their application. Missing this is one of the most common causes of incomplete applications.

Assuming upgrade is automatic

Your license doesn't grow with your business. If your projects exceed your class limits, you need to actively apply for an upgrade - don't wait until after you've taken on work you're not authorized to perform.

Start Preparing for Your Virginia Contractor License

Whether you're applying for Class A, B, or C, Contractor Training Center has everything you need to get licensed and stay compliant. From the 8-hour pre-license education course to Virginia Business & Law exam prep and specialty exam preparation, our programs are built specifically for Virginia contractors.