Mississippi Financial, Exam & Certificate Requirements
Beyond the exams, a Mississippi contractor must document net worth on a specific kind of financial statement and pass both a trade and a business-law exam. This chapter reviews the net-worth standard, the CPA statement rule, the dual exam path, and the open-book format.
Net worth and the CPA statement rule
An applicant documents net worth of roughly $50,000 for a major classification and about $20,000 for a specialty classification. Mississippi is specific about the form of proof: the financial statement must be reviewed or audited by a CPA and dated within the prior 12 months. A compilation-level statement is not accepted, because it does not provide the assurance the board requires. This rule pushes applicants to obtain a higher level of CPA engagement.
The dual exam path
Licensure for the commercial building or electrical scope involves two examinations: the Mississippi Business and Law examination and, for the trade portion, the NASCLA Accredited Commercial General Building Contractor exam. NASCLA covers the technical scope while the Business and Law exam covers Mississippi licensing law and business management. A candidate must pass both, and NASCLA alone does not license a Mississippi contractor.
The Certificate of Responsibility holder and the exam format
The Certificate of Responsibility is held by a qualifying individual who has passed the examinations and is responsible for the company's covered contracting. The Business and Law examination is an open-book, multiple-choice test administered by PSI, covering Mississippi licensing law, estimating, contracts, finance, labor, tax, project management, risk, and safety. Because it is open book, candidates should practice quickly locating the governing rules and thresholds.
State-specific details
State exam facts
- State regulator
- Mississippi State Board of Contractors (MSBOC)
Does Mississippi require a state contractor license?
Yes. The Mississippi State Board of Contractors (MSBOC) requires a commercial Certificate of Responsibility for public or private commercial projects of $50,000 or more, under the Mississippi Code Title 31, Chapter 3 (commercial) and Title 73, Chapter 59 (residential).
Does Mississippi use tiered commercial license limits?
No. The MSBOC issues a single UNLIMITED commercial license and does NOT use A/B/C/D monetary tiers, so there are no tiered dollar limits on the commercial license. On the residential side, a builder license is required above $50,000 and a remodeler license above $10,000.
What financial statement does Mississippi require?
Applicants document net worth (about $50,000 for a major classification, $20,000 for a specialty) on a CPA-reviewed or audited financial statement dated within the prior 12 months; a compilation is not accepted. An unlicensed contractor cannot sue to enforce a covered contract.
Sources: https://www.msboc.us