You'll sometimes see two contractors doing similar-looking work, both appearing on an official state list, but with very different credentials behind them. Some states issue a true trade license — earned by passing an exam specific to a trade like plumbing or electrical work, and tied to demonstrated experience or apprenticeship hours. Other states, or other parts of the same state's system, only require a general contractor registration, which can be closer to a business filing than a test of skill.
The difference isn't cosmetic. An exam-backed trade license means the state has verified that person understands the applicable code — the National Electrical Code for electrical work, or the state plumbing code for plumbing work — well enough to pass a standardized test. A general registration, by contrast, often just confirms the business is legally allowed to operate and has met basic requirements like carrying insurance or paying a fee. Someone can hold a valid general contractor registration and list 'electrical' as one of several self-declared specialty codes without ever having taken an electrical exam.
This is exactly why TrustedTradesFinder never labels a registration-only listing as 'Licensed.' Every profile on this site is tagged either 'Licensed' — meaning we've confirmed it's a real, tested, trade-specific credential — or 'Registered' — meaning it's a general contractor registration where the trade category is a self-declared specialty, not a separately tested credential. You'll see this called out explicitly on any profile where it applies, right below the business name.
For homeowners, the practical takeaway is simple: for higher-risk trade work — anything involving your home's electrical system, gas lines, structural plumbing, or load-bearing roof work — an exam-backed trade license is a meaningfully stronger signal than a general registration alone. It doesn't mean a registered contractor can't do good work; many do. But it does mean you should ask more questions before hiring: how many similar jobs have you completed, can I see photos or references from comparable projects, and will you pull the required permit for this specific job.
It's also worth knowing that this distinction varies by state, not by trade. The same type of plumbing work might require a tested trade license in one state and only a general registration in another, depending entirely on how that state's licensing board structures its requirements. That's part of why checking the specific state's rules — not assuming national consistency — matters every time you hire someone from out of state or move to a new one.
Bottom line: 'appears on an official state list' and 'passed a trade exam for this specific work' are not always the same thing. Knowing which one you're looking at, and asking the right follow-up questions when it's the latter, is one of the simplest ways to reduce risk before work starts in your home.