Interior Designers Need to be Licensed Contractors
Under Minnesota law, anyone managing two or more trades on a job site needs to be a licensed General Contractor.
Minnesota Law
Minnesota's Department of Labor and Industry (“DOLI”) mandates contractor licenses to safeguard public safety. A licensed General Contractor (“GC”) possesses the knowledge and experience to ensure all components of a complex project come together seamlessly, adhering to building codes and safety standards.
Any company that provides or oversees work in two or more trade areas must have a residential building contractor or residential remodeler license (restricts project scopes to exclude building new homes or detached garages).
Trade areas include:
- Excavation
- Masonry/Concrete
- Carpentry
- Interior Finishing
- Exterior Finishing
- Drywall and Plaster
- Roofing
- General Installation Specialties
How Does This Apply to Interior Designers?
An interior designer who focuses exclusively on design aspects and does not supervise, manage, or oversee another tradesperson does not require a license. This scenario is increasingly rare. Most interior design projects go beyond aesthetics— they involve collaborating with various tradespeople throughout the building or renovation process.
Interior designers act as contractors by “providing”, “overseeing”, and “directing” multiple trades. Very often, the interior designer has the contract with the homeowner, and various tradespeople (subcontractors) coordinate their work through the designer. When this happens, interior designers become de facto GCs, and a license is required.
Interior designers who act as unlicensed GCs are at a substantial risk of fines and may face other DOLI compliance issues.
The “GC tax” (the amount interior designers save their clients by acting as unlicensed GCs without charging comparable GC rates) exists for a reason. Most contractors use that additional income to fund a nest egg that covers regulatory fees and charges. Without that money sitting in reserve, unlicensed designers are left particularly vulnerable to financial penalties that could devastate their businesses down the line.
For more information on applying for your General Contractor license, see here or call NSLG to learn more/for assistance obtaining your license.
Thank you to Law Clerk Vivian Kramer for her significant contributions to this post.
