Running a trade business in Georgia: licenses, the 90-day lien and workers comp

Georgia licenses more of the building industry than its southern reputation suggests, and its lien deadlines are short enough to punish slow paperwork. The 2026 essentials:

Who needs a license

Residential and general contractors need a state license from the State Licensing Board for Residential and General Contractors for projects over $2,500, with residential-basic, residential-light commercial and general contractor tiers based on experience, exams and net-worth requirements. The classic trades sit under the Construction Industry Licensing Board divisions: electrical contractors (Class I and II), plumbers (journeyman and master), and conditioned air (HVAC) contractors, all statewide licenses with exams. Local business licenses still apply, but competency licensing is state-level, which keeps multi-county work simple.

Mechanics liens: 90 days, strictly

The claim of lien must be filed within 90 days of your last labor or materials, in the county where the property sits, and a copy sent to the owner within two business days. Where a Notice of Commencement is filed on the project, subs and suppliers without a direct owner contract must serve a Notice to Contractor within 30 days of first furnishing or lose rights. Suit (or lien action notice) follows within 365 days. Georgia also demands statutory magic words on the lien face, so use a current form.

Workers comp and tax

Workers compensation is required at three or more employees, including part-timers, with construction subs routinely required to carry it by GCs regardless of headcount. Georgia does not generally tax construction labor; contractors pay sales tax on materials.

OSHA and quick facts

Georgia is a federal OSHA state. License verification is public through the Secretary of State, and unlicensed contracting over the threshold makes the contract unenforceable, meaning courts will not help you collect, which is the sharpest enforcement mechanism of all.

Georgia FAQs for trade businesses

What happens if I contract over $2,500 without a Georgia license?

The contract is unenforceable, meaning a court will not help you collect, and the board can fine you. Licensing early is cheaper than one unpaid job.

When do I need to send a Notice to Contractor?

Within 30 days of first furnishing, whenever a Notice of Commencement has been filed on the project and you have no direct contract with the owner. No notice, no lien.

Does Georgia tax my labor?

Construction labor is generally not taxed; you pay sales tax on materials. Keep labor and materials separated on invoices and the treatment stays clean.

This guide is general information, not legal advice. Licensing thresholds, lien statutes and tax rules change; always confirm current requirements with the licensing board, an attorney or your accountant before relying on them.