Nearly every new Tennessee contractor license, CE electrical included, requires the business and law exam, even with a trade exam waiver. It's 50 open-book questions in 2½ hours at Prov. You need 73% to pass, and each attempt costs $53.
| Quick facts | TN Business and Law exam |
|---|---|
| Official name | Tennessee Contractor Business and Law (new licensees only) |
| Format | 50 questions, 2.5 hours, computer-based, 73% to pass |
| Fee | $53 per attempt, paid to Prov |
| Allowed book | NASCLA Contractors Guide to Business, Law and Project Management, Tennessee, 4th edition |
| Who needs it | All contractor licenses but one (the restricted residential BC-A/r). Not the LLE. |
| Score life | The Board typically accepts results for 2 years |
Who needs the Tennessee business and law exam?
The Board for Licensing Contractors requires it from:
- New CE Electrical Contractor applicants, along with the CE trade exam
- Out-of-state contractors with a trade exam waiver (Tennessee's waiver form covers the trade exam only)
- NASCLA electrical passers, since NASCLA replaces only the CE trade exam
- Classifications with no trade exam, through Prov's "Business & Law Only" registration
Limited Licensed Electricians skip it. The Board's LLE page lists only the LLE trade exam. Restricted residential (BC-A/r) applicants take a community college course instead.
Licensed in Alabama, Louisiana, Mississippi, North Carolina, Ohio, South Carolina or West Virginia? See the Tennessee reciprocity guide for the trade exam waiver.
Need the CE trade exam too? Without a waiver, a new CE license also takes the 100-question Electrical Contractor exam on the 2017 NEC. JCR's Tennessee self-study course covers it for $495, with video lessons, online practice exams and the JCR workbook.
Who can take it for your company?
Your qualifying agent, the person who qualifies the company for its license.
- Owners, officers and full-time employees can serve. Non-owners also file a Power of Attorney form.
- Different people can pass each exam. Your lead electrician can take the code exam while an owner takes the business exam.
- Up to 2 people may take each exam for the company.
What's on the Tennessee contractor business and law exam?
Prov's Tennessee candidate bulletin (October 20, 2026) splits the 50 questions into 11 topics:
- Estimating and bidding: 7
- Contracts: 6
- Licensing: 5
- OSHA safety: 5
- Labor law: 5
- Tax law: 5
- Business organization: 4
- Project management: 4
- Risk management: 4
- Financial management: 3
- Lien law: 2
What book can you bring?
Only the NASCLA Contractors Guide to Business, Law and Project Management, Tennessee (4th edition). An older or newer version is allowed, but questions are scored on the 4th edition.
- Highlighting and permanent tabs are fine. Erase any handwritten notes.
- No movable tabs, sticky notes, photocopied pages or study guides.
- Bring a simple 4-function calculator, or use the one built into the test.
- If the book and the law differ, Tennessee statutes, rules and adopted codes win.
Booking, retakes and what happens after you pass
- Book at Prov's scheduler or by phone. No Board approval is needed.
- Test at a Prov center in Chattanooga, Greeneville, Knoxville, Memphis, Murfreesboro or Nashville, any Prov center nationwide, or at home through Examroom.
- Cancel or move it at least 3 days ahead, or the $53 is gone.
- Retake after waiting 1 day, as often as needed.
- After you pass, keep your score report. The Board gets your score from Prov, but you still include the report with the $250 contractor application on CORE.
How to pass the TN business and law exam
- Tab the guide by the bulletin's 11 topics.
- Study safety, labor and tax. Together they're 15 questions, the same as estimating, contracts and lien law combined.
- Answer every question. Prov doesn't take points off for wrong answers.
- Flag, don't break. A break locks every question you've already seen. Budget 3 minutes a question.
Tennessee business and law practice questions
The exam has 5 licensing questions. Try these 5, built from the Board's contractor license rules. On test day, find answers in the NASCLA Tennessee guide.
Question 1: When a license is required
As the prime contractor, you need a Tennessee contractor license before you bid a project worth at least how much?
- $10,000
- $25,000
- $50,000
- $100,000
Show the answerHide the answer
Answer: B, $25,000. The Board requires a license for projects of $25,000 or more when you act as the prime contractor.
Question 2: Monetary limit
A company has $40,000 in working capital and $60,000 in net worth. What monetary limit can it get?
- $100,000
- $400,000
- $600,000
- Unlimited
Show the answerHide the answer
Answer: B, $400,000. The limit is 10 times the lesser of working capital or net worth: 10 × $40,000. Choice C uses the larger number.
Question 3: Unlimited license
What does an unlimited monetary limit take?
- $150,000 in net worth only
- $300,000 in both working capital and net worth
- An audited statement and nothing else
- A $500,000 surety bond
Show the answerHide the answer
Answer: B. The Board asks for $300,000 in both working capital and net worth for an unlimited limit.
Question 4: Surety bond option
Since July 1, 2026, a contractor can file a surety bond instead of the financial statement. How large must it be?
- 10% of the monetary limit requested
- 25% of the monetary limit requested
- 50% of the monetary limit requested
- 100% of the monetary limit requested
Show the answerHide the answer
Answer: C, 50%. The bond must equal at least 50% of the monetary limit you request.
Question 5: Qualifying agent
Who can serve as a company's qualifying agent?
- Any licensed electrician in Tennessee
- An owner, officer or full-time employee
- Only the company's owner
- Anyone who signs the reference letter
Show the answerHide the answer
Answer: B. The qualifying agent can be an owner, officer or full-time employee. A qualifying agent without ownership also files a Power of Attorney form.
Tennessee business and law exam questions
Do I need the Tennessee business and law exam if my trade exam is waived?
Yes. Tennessee's reciprocity agreements waive only the trade exam. Apart from the restricted residential BC-A/r, all contractor licenses still need Business and Law.
Does the Tennessee LLE need the business and law exam?
No. The LLE requires only the LLE trade exam. Business and Law applies to contractor licenses, such as the CE for electrical jobs of $25,000 or more.
Is the Tennessee business and law exam open book?
Yes. Bring the NASCLA Contractors Guide for Tennessee, 4th edition, highlighted and permanently tabbed. Handwritten notes and added pages aren't allowed.
How long is a passing business and law score good for?
The Board says exam results are typically valid for 2 years. Apply for your license within that window so you don't have to retest.
Still need the CE trade exam?
Without a waiver, your CE license also needs the 100-question Electrical Contractor exam on the 2017 NEC. JCR's $495 Tennessee Electrical Exam Prep self-study course is built on that edition.
You get video lessons, online practice exams and the JCR workbook. Videos open at checkout, and the workbook ships the same business day.
Get the Tennessee course — $495
For the trade exam's format and rules, see JCR's Tennessee electrical exam guide.
More Tennessee guides
Sources JCR checked
- Prov Tennessee Board for Licensing Contractors bulletin (October 20, 2026)
- TN Board: Contractor license
- TN Board: Exam information
- TN Board: Limited Licensed Electrician
- TN trade exam waiver (reciprocity) form
- TN Board: Fees
JCR checked these details against Prov's bulletin on October 20, 2026, the Tennessee Board's contractor and LLE license pages on October 21, 2026, and its other pages on October 14, 2026. If your company setup is unusual, confirm with the Tennessee Board for Licensing Contractors.