# The Two Exams: Trade vs. Business & Law
Most contractor licenses require passing **up to two exams**.
## 1. The trade / technical exam
Tests your knowledge of the **construction trade** and applicable **codes** (building, electrical, etc.). This is the exam the **NASCLA Accredited Exam** can replace in participating states (see the NASCLA course).
## 2. The business & law exam
Tests **running a contracting business** in that state: contracts, liens, licensing law, labor, taxes, safety, and state-specific rules. This is **state-specific** and generally **must be taken in each state** — NASCLA does **not** replace it.
## Preparing
- Use the state's **candidate information bulletin** for the content outline and reference list.
- Exams are usually administered by a vendor (e.g., PSI/Prometric).
- Budget study time for both — the business & law portion trips up many skilled tradespeople.
**Takeaway:** Study for the business & law exam too — it trips up skilled tradespeople.
> *Educational content — not legal, accounting, or licensing advice. Rules vary by state and change; verify with the licensing board and a CPA.*
