Tennessee Contractor License Tool

License Limit Estimator

Estimate whether your working capital and net worth may support a requested Tennessee contractor license monetary limit, using the same conservative balance-sheet approach contractors often plan around before filing.

Read how Tennessee license limits work

Before you start: required figures

Use figures from the business or entity applying for the license. Do not enter annual revenue.

Current assets
Current liabilities
Total assets
Total liabilities
Receivables over 90 days, if any
LOC or guarantor support, if applicable

Optional fields can stay blank. Enter $0 only when the statement truly shows zero.

Transaction type

Initial

Renewal

Increase

New license, renewal, or higher limit request. Renewals may be reviewed under different rules.

Current assets

Cash, receivables, inventory. From the balance sheet, not revenue.

Current liabilities

Due within about a year. Do not double-count in total liabilities.

Total assets

Full statement total, including long-term assets.

Total liabilities

All liabilities; current portion is included here.

Adjustments and supplemental support

Receivables > 90 days help

Past-due portion only. Already in current assets; do not subtract from total assets.

Line of credit

Unused credit for the filing. Adds to working capital only; half may count if WC is negative first.

Supplemental guarantor support

Gross documented support. Counted at 50% toward both working capital and net worth.

Additional filing-strength factors (optional)

These do not automatically change the formula, but they may affect how strong the filing appears.

Cash-only or no fixed assets Receivables-heavy working capital Requested limit may exceed demonstrated project experience

Requested monetary limit

Optional. Used to compare against the estimate and plan support needed.

Your filing estimate

Your estimate will appear here after you enter your financial figures and run the calculation.

Conservative estimated limit

Limiting factor

Working capital (×10)

Net worth (×10)

Educational estimate based on balance-sheet rules commonly used in planning. Official limits depend on board review, documentation, and experience.

Formula breakdown

Adjusted working capital

Adjusted net worth

Conservative estimated limit

Current ratio

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Estimate quality

What this means

Formula used

The conservative estimate is based on 10× the lower of adjusted working capital and adjusted net worth. The estimator also adjusts for receivables over 90 days, line-of-credit treatment, and supplemental guarantor support at 50% when applicable.

Statement type guidance

Next step

License Limit Estimator

Adjustments and supplemental support

analytics Formula breakdown

Formula breakdown