Construction / Business and Law Exam / Mississippi
- Mississippi
- Law & Business Exam
- All Contractor Licenses
- Updated Oct 2026
How to Pass the Business and Law Exam in Mississippi
Who has to take Mississippi’s Law and Business Management exam, what’s on it, how it’s scored and how it fits into getting your contractor license.
Last updated October 27, 2026 from Mississippi State Board of Contractors requirements
Application fee
$50–$400
Residential $50, commercial $400; plus $120 per PSI exam
Exam time
2 hrs
50 questions, open book
Time to get license
Varies
Pass within 1 year of your trade exam
Continuing ed
Residential only
Hours not stated
Overview
Who needs to take the Mississippi business and law exam?
Almost certainly. Mississippi requires the Law and Business Management exam for any type of contractor license, and you must pass it within 1 year of passing your trade exam.
License required when
- You’re applying for any Mississippi contractor license
- That includes building construction, mechanical, HVAC, plumbing and residential builder licenses
- You need 70% on both this exam and your trade exam
- You must pass it within 1 year of passing the trade exam
Common exceptions
- Some commercial contracting under $50,000 can be done without a contractor license in certain areas
- Passing this exam alone doesn’t get you a license. You also need your trade exam, insurance and application documents.
Penalties for unlicensed work
Mississippi requires a contractor license for work above the state thresholds. The board can take action against people who contract without a license, so don’t bid until your license is issued.
Your Mississippi business and law exam checklist
The Mississippi application, one page
- Passing scores (70%+) for Law and Business Management and your trade exam, within 1 year of each other
- CPA- or PA-prepared financial statements
- Letter of reference showing work and trade experience
- General liability sized to your monetary limit
- Workers’ comp coverage
- Completed, signed and notarized application package
Types
Which Mississippi licenses require the business and law exam?
The Law and Business Management exam is required for nearly every Mississippi contractor license. Each license also has its own trade exam. A few examples:
BC
Commercial
Building Construction
Commercial building work. Requires Law and Business Management plus the building construction trade exam.
Exam
B&L + trade
Limit
Not stated
RES
Residential
Residential Builder
Residential building work. Residential contractors also need continuing education.
Exam
B&L + trade
Limit
Not stated
MECH
Specialty
Mechanical Contractor
Mechanical contracting. Requires Law and Business Management plus the mechanical trade exam.
Exam
B&L + trade
Limit
Not stated
HVAC
Specialty
HVAC Contractor
Heating, ventilation and air conditioning work. Requires Law and Business Management plus the HVAC trade exam.
Exam
B&L + trade
Limit
Not stated
PLMB
Specialty
Plumbing Contractor
Plumbing contracting. Requires Law and Business Management plus the plumbing trade exam.
Exam
B&L + trade
Limit
Not stated
Requirements
What you need before you sit for the Mississippi business and law exam
You take two exams through PSI, and you need 70% on each. Here’s how they compare.
| Requirement | Law & Business Management | Trade exam |
|---|---|---|
| Who takes it | Nearly all contractors | Everyone, for their classification |
| Passing score | 70% | 70% |
| Questions | 50 | Not stated |
| Time allowed | 120 minutes | Not stated |
| Book policy | Open book | Open book |
| Timing rule | Pass within 1 year of the trade exam | Not stated |
| Scheduling | PSI, 855-557-0619 | PSI, 855-557-0619 |
Steps
How to register for and pass the Mississippi business and law exam, step by step
- Pick your classificationBefore you start
Choose the license that matches your work, such as building construction, residential builder, mechanical, HVAC or plumbing. That sets your trade exam. - Schedule both exams with PSIBefore exam day
Book online with PSI or call 855-557-0619. Testing centers are in larger cities across the state. - Pass Law and Business Management and your trade examWithin 1 year
This exam is 50 questions in 120 minutes, open book, and you need 70%. Pass it within 1 year of passing your trade exam. - Get your insurance and financialsBefore you apply
Carry general liability sized to your monetary limit and workers’ comp, and have a CPA or PA prepare your financial statements. - Gather your documentsBefore you apply
A letter of reference showing your work and trade experience, and a completed, signed and notarized application package. - Apply for your licenseAfter passing
Submit your application to the Mississippi State Board of Contractors. Corporations and LLCs also handle their business filings with the Secretary of State.
Exam
What’s on the Mississippi business and law exam?
Law and Business Management is a 50-question, open-book exam. You can tab and highlight the approved reference and use it during the test.
Format
Open book
Questions
50
Passing score
70%
Exam vendor
PSI
Scoring & content
- 50 questions, 120 minutes, 70% to pass
- Topics: licensing, estimating and bidding, lien law, financial management, tax and labor laws
- Also: project management, contracts, business organization, risk management, environmental and safety
- Reference: NASCLA Contractors Guide to Business, Law and Project Management, Mississippi 6th edition
- References can be tabbed and highlighted
Retake policy
- Each retake costs the same $120 PSI fee; waiting periods aren’t stated in our sources
- You must pass within 1 year of passing your trade exam
- Rebook through PSI at 855-557-0619
- Check PSI’s current candidate information before you rebook
Exam references · Open book
The Mississippi Business and Law exam is open book. The approved reference below can be tabbed, highlighted and used during the test.
| Book | Edition | Use |
|---|---|---|
| NASCLA Contractor’s Guide to Business, Law and Project Management, Mississippi Edition | 6th edition | Allowed in exam |
Prep
Best Mississippi business and law exam prep, compared
We haven’t compared prep courses for this exam yet.
Costs
How much does the Mississippi business and law exam cost?
| Item | Type | Estimate |
|---|---|---|
| Law and Business Management exam fee | Fixed | $120 |
| Trade exam fee | Fixed | $120 |
| License application fee | Fixed | $50–$400 |
| NASCLA reference book | Variable | Varies |
| CPA/PA financial statements | Variable | Varies |
| General liability and workers’ comp | Variable | Varies |
| State fees and exams | Excludes books, CPA statements, insurance and extra classifications ($100 each) | $290–$640 |
Fees from the MSBOC Schedule of Fees, application and renewal forms and the PSI Mississippi contractor candidate bulletin, checked October 2026.
Reciprocity
Does Mississippi accept a business and law exam passed in another state?
Mississippi has reciprocity agreements for a variety of license classifications and states, but our sources don’t list them or say whether this exam is waived.
Other states — details not stated
Reciprocity exists for several classifications and states. Confirm with the board whether your license qualifies and which exams you still need to take.
Local
Local Mississippi licensing rules that sit alongside the business and law exam
Your state license covers all of Mississippi. Cities and counties still handle permits and inspections, and some smaller commercial jobs are treated differently in certain areas.
State handles
- Contractor licenses and classifications
- Law and Business Management and trade exams, through PSI
- Insurance and financial statement requirements
- Continuing education for residential contractors
City & county handle
- Building permits
- Inspections
- Local rules for some commercial work under $50,000
Governance
Who regulates contractors in Mississippi
Oversight responsibilities
- Issues contractor licenses and classifications
- Sets the Law and Business Management and trade exam requirements
- Reviews financial statements, insurance and references
- Sets continuing education for residential contractors
Maintenance
Keeping your Mississippi license active after you pass the business and law exam
You don’t retake this exam to renew. Licenses renew every year: $100 for residential and $400 for commercial. Residential contractors also need continuing education.
Renewal cycle
Annual
CE hours
Residential only (hours not stated)
Renewal fee
$100 residential; $400 commercial
Late penalty
$10 residential; $50 commercial
FAQ
Mississippi business and law exam FAQs
Is the Mississippi business and law exam open book?
Yes. You can bring the approved reference, tabbed and highlighted, and use it during the exam.
How many questions are on the Mississippi Law and Business Management exam?
50 questions. You get 120 minutes and need 70% to pass.
Who has to take it?
Nearly every contractor. It’s required for any type of Mississippi contractor license, on top of your trade exam.
Is there a deadline to pass it?
Yes. You must pass it within 1 year of passing your trade exam.
How do I schedule the exam?
Through PSI, online or by phone at 855-557-0619.
What book do I need?
The NASCLA Contractors Guide to Business, Law and Project Management, Mississippi 6th edition.
Sources
Official sources for the Mississippi business and law exam
- Mississippi State Board of Contractors
- PSI, Mississippi contractor exam catalog
- NASCLA Contractors Guide to Business, Law and Project Management, Mississippi 6th edition
- Mississippi State Board of Contractors, Schedule of Fees (PDF)
- Mississippi State Board of Contractors, Commercial Application (PDF)
- Mississippi State Board of Contractors, Residential Application (PDF)
- Mississippi State Board of Contractors, Commercial License Renewal Form (PDF)
- Mississippi State Board of Contractors, Residential License Renewal Form (PDF)
- PSI, State of Mississippi Contractor Examinations Candidate Information Bulletin
Last updated October 27, 2026. Spot something out of date? Tell us.
Exam Insiders is an independent guide and is not affiliated with the Mississippi State Board of Contractors.