Plumbing License in Michigan: Fees, Requirements & Startup Costs

Quick answer: Michigan plumbing licensing is handled by the Department of Licensing and Regulatory Affairs (LARA), Bureau of Construction Codes. A new plumbing business needs a Plumbing Contractor license, and the applicant must hold or employ a Master Plumber who qualifies only one contractor. The main year-one official fees are a $300 Plumbing Contractor application fee and a $100 PSI Plumbing Contractor exam fee per attempt, listed in the LARA plumbing examination application and the PSI bulletin.

Who licenses what: business versus individual qualifier

Michigan separates the business credential from the individual qualifier. The Plumbing Contractor license is the business credential, and the applicant must be a sole proprietor, partner, corporate officer, or LLC member. That applicant must also hold or employ a Master Plumber. The Master Plumber is the licensed qualifier in charge of plumbing code compliance, and one Master Plumber qualifies only one Plumbing Contractor license at a time. A company cannot simply file paperwork and begin contracting; the qualifying master is part of the licensing structure.

Both credentials require separate PSI exams and separate initial applications. A person who holds both licenses renews both by entering the contractor number, according to LARA renewal guidance. Whether that produces one combined $300 payment is not explicit in the reviewed materials, so do not assume a single renewal charge covers both.

Licensing in Michigan

Jurisdiction: state

Authority: Michigan Department of Licensing and Regulatory Affairs (LARA), Bureau of Construction Codes

LARA Bureau of Construction Codes issues statewide plumbing contractor and Master Plumber licenses under the Skilled Trades Regulation Act.

Plumbing Contractor

BUSINESS Required contractor credential; applicant must be sole proprietor, partner, corporate officer, or LLC member and hold or employ a Master Plumber who qualifies only one contractor.

FeeAmountPeriod (years)
Initial Plumbing Contractor license application$300 OFFICIAL FEE Source — www.michigan.gov3
PSI Plumbing Contractor examination, each attempt$100 VERIFIED DATA Source — test-takers.psiexams.com—
Three-year Plumbing Contractor renewal; LARA states a holder of both contractor and qualifying master licenses renews both using the contractor number$300 OFFICIAL FEE Source — www.michigan.gov3

Exam: Provider: PSI · Fee: 100 · Source

Experience: Must hold or employ a Master Plumber; applicant supplies five years of residence and business history.

Renewal and CE: Renewal period: 3 years · Continuing education: 0 hours · Source

Master Plumber

INDIVIDUAL Licensed qualifier in charge of plumbing code compliance; qualifies only one Plumbing Contractor license at a time.

FeeAmountPeriod (years)
Initial Master Plumber license application$300 OFFICIAL FEE Source — www.michigan.gov3
PSI Master Plumber examination, each attempt$100 VERIFIED DATA Source — test-takers.psiexams.com—
Three-year Master Plumber renewal; see note on combined master/contractor renewal$300 OFFICIAL FEE Source — www.michigan.gov3

Exam: Provider: PSI · Fee: 100 · Source

Experience: At least 18 years old and 4,000 hours working as a journey plumber over at least two years immediately preceding the application.

Renewal and CE: Renewal period: 3 years · Source

Local note: Local plumbing permits and inspections may be required by the authority having jurisdiction.

Data notes

Plumbing contractors and Master Plumbers have separate initial applications and PSI exams. Masters must take a code update course within one year after a new code is adopted.

Verified: 2026-09-25

License classes and the path into contracting

There are two license types to plan around. The Master Plumber license is the individual credential. The Plumbing Contractor license is the business credential. A new business typically needs the contractor license, which depends on access to a qualifying master. If the owner is not already a Master Plumber, the business must employ one, and that master’s qualifier status is limited to a single contractor.

The Master Plumber path requires the applicant to be at least 18 years old and to have at least 4,000 hours working as a journey plumber over at least two years immediately preceding the application. The Plumbing Contractor applicant supplies five years of residence and business history. The reviewed LARA materials do not list a separate education requirement for either license.

Exams and fees

PSI administers both the Master Plumber and Plumbing Contractor examinations. Each attempt costs $100, per the PSI bulletin. The initial Plumbing Contractor application fee is $300, and the initial Master Plumber application fee is also $300. These are separate applications, so a new business that needs both credentials should budget both application fees and both exam fees rather than treating them as one charge.

The reviewed LARA materials do not list a bond, insurance, or background-check requirement for either license. If a client or general contractor requires coverage, that is a contractual matter rather than a state licensing condition on the reviewed sources.

Renewal and continuing education

Both licenses renew every three years. The renewal fee is $300, according to LARA. Renewal fees are not starting costs; they apply later in the license cycle. A master code update course is required within one year after adoption of a new code. Fixed continuing education hours were not confirmed on LARA’s published materials, so verify the current requirement before the renewal date.

Put renewal dates and any code-update deadlines on the operating calendar. A contractor license that lapses can interrupt active jobs, and the qualifier relationship should be documented so both parties know who is responsible for code compliance.

The local layer: permits and inspections

Local plumbing permits and inspections may be required by the authority having jurisdiction. A state license does not set a statewide permit policy. Before bidding work, ask the city or township for each job address which work needs a permit, who must apply, and how inspections are scheduled. Add permit time and inspection returns to the estimate, especially on replacements and remodels.

For a broader comparison of credentials, read the plumbing license requirements by state. Neighboring and comparable states include Ohio and Georgia. The plumbing business guide covers operations beyond licensing, and the startup costs page explains how fees, tools, and vehicles shape the opening budget.

Startup Cost Calculator

Estimated startup cost: $9,150–$11,300

Estimated startup cost: $9,150–$11,300. Break-even at about 7 jobs per month.

Licensing & exam fees$400 OFFICIALLicense details
Business formation (state filing)$50 OFFICIAL
Insurance (first year)$1,750 MARKET ESTIMATEGeneral liability
Coverage sources
Vehicle acquisition$0 YOUR INPUTYour existing vehicle; acquisition cost $0
Vehicle price sources
Tools & equipment$50 MARKET ESTIMATE
Starter kit items
  • Pipe wrenches: $40
  • Tubing cutter: $50
  • Drain auger: $50
  • Ladder: $330
  • Safety gear: $10
  • Milwaukee M18 FORCE LOGIC 2922-20 press tool (ONE-KEY): $2,250
  • Milwaukee 2773-22L M18 Force Logic long throw press tool kit 1/2-1 in.: $4,550
  • RIDGID K-400 drum drain cleaning machine: $830
  • Inspection camera: $40
Software (first year)$590–$2,250 MARKET ESTIMATEPublished monthly list price × 12
Software price sources
Launch marketing$1,500 YOUR INPUTYour input — default: 3 months × $500
Payroll reserve$0 CALCULATEDBLS median wage × 173 hours/month × employees × employer taxes and ECEC benefits × working-capital months
Working capital$4,800–$5,250 CALCULATEDMonthly overhead excluding payroll (shown separately) × working-capital months
Permits & compliance$0 YOUR INPUTYour input — default $0; local requirements may apply

Monthly overhead: $1,600–$1,750 · Annual operating: $19,300–$21,000 · Break-even: 7 jobs/month

Vehicle operating per month: $760 CALCULATED

Phone and admin per month: $150 YOUR INPUT

Show formula

Startup total is the sum of available first-year cost lines. Monthly overhead includes insurance, software, marketing, vehicle operating, phone and admin, and payroll. Break-even jobs = monthly overhead ÷ (average ticket × gross margin).



Last updated: October 21, 2026