Does Louisiana require a contractor's license? The answer is yes. For those looking to start a contracting business in Louisiana in 2024, there are several licensing requirements that must be met in order to legally operate. In this blog post, we will provide an overview of the Louisiana general contractor license requirements for 2024.

Does Louisiana Require a Contractor’s License?

To legally operate as a contractor in Louisiana, you must obtain a Louisiana general contractor license. 

Who Issues a General Contractor License in Louisiana?

The licensing requirements are governed by the Louisiana State Licensing Board for Contractors (LSLBC). The LSLBC divides contractors into different categories based on the scope of work and contract price of the anticipated projects. Before applying for a Louisiana contractor's license, you must first be registered with the Louisiana Secretary of State. 

Types of Louisiana State Contractor Licenses

There are four main types of contractor licenses in Louisiana including: 

1. Commercial License: Required for commercial projects exceeding $50,000 in contract price, including labor and materials. Subcontractors and specialty trade contractors must also hold licenses for these projects.
2. Residential License: Mandatory for residential projects exceeding $75,000. This category covers home improvements and the construction of one to four-unit family dwellings. Licensing for subcontractors and specialty trades is necessary unless the project's contract price is below $75,000.
3. Mold Remediation License: Restoration contractors, including those involved in water remediation, need this license for any project valued at $1.00 or more, encompassing labor and materials. It is required whenever water remediation is part of the project, regardless of the presence of mold.
4. Home Improvement Registration: Applicable to home improvement projects valued over $7,500 but below the residential license threshold of $75,000. However, this license does not cover swimming pool installations or improvements, which fall under specialty trade licensing.

How to get a Louisiana Contractor License - Step By Step

To obtain a Louisiana contractor license, it's crucial to navigate through a series of steps meticulously. Here's an elaboration on each of these essential steps:

Step 1: Provide the following information in your application

• Business registration details, including partnership agreements, articles of organization, or other relevant business registration documents.
• Qualifying party information, which pertains to the person applying for the license. Include name, address, date of birth, social security number, email address, and desired classifications. Initial each statement in the "Qualifying Party Affidavit" section, and ensure it is notarized.
• Financial statement affidavit, demonstrating a net worth of at least $10,000 or alternatives such as bonds or letters of credit.
• Proof of insurance coverage, specifically for residential and home improvement applications. General liability insurance with a minimum coverage of $100,000 is required, along with workers' compensation insurance if you have employees. Email copies of your insurance policies to insurance@lacontractor.org after submitting the application.

Step 2: Pay Fees

Submit the non-refundable application fee, which varies depending on the number of classifications you choose. For a single classification, the fee is $100, and for two, it's $195. Be sure to consult the comprehensive fee schedule available on the LSLBC website. Additionally, you'll need to cover the costs of the two mandatory exams. Each exam carries a fee of $120. Keep in mind that trade exams have their own associated fees and can consist of anywhere from 50 to 115 questions.

Step 3: Take and Pass Exams

After your application gains approval, expect to receive an exam approval letter containing your unique exam ID number. Earning a Louisiana contractor's license necessitates passing two crucial exams: the general business and law exam and a trade exam that aligns with your chosen classifications. The business and law exam is an open-book assessment lasting one hour, addressing a range of topics such as licensing, bidding, contract management, job safety, and tax fundamentals. Should you not pass, a mandatory 30-day waiting period for retaking the exam comes into play. Upon successfully meeting the requirements, anticipate receiving your official Louisiana contractor's license confirmation via mail.

How Much Does Licensing Cost?

The fee structure is as follows: $100 for a single classification and $195 for two classifications. You can find the complete fee schedule on the LSLBC website. In addition to the application fee, there is an exam fee of $120 for each of the two required exams.

Tips for Passing the General Contractor Licensing Exam in Louisiana

• Take Practice Exams: Practice exams can be found online and help you prep for all topics and materials on the test.
• Time Management: The general contractor licensing exam in Michigan is time-limited. Practice managing your time effectively to ensure you can complete all the questions within the allotted time.

Penalties for Unlicensed Contractors in Louisiana

It is crucial to understand and comply with the general contractor license requirements in Louisiana to avoid penalties such as the licensing board imposing fines of up to 10% of your contract value. Moreover, if the violation leads to legal action, the unlicensed contractor may face additional fines for actual damages, along with potential liability for attorney fees and court costs..

Leveraging your license on Houzz

Now that you know the Louisiana general contractor license requirements, it’s time to start thinking about how you can promote your license to potential clients. Everyone who’s anyone knows the value of a blue checkmark on social media. That’s what the green Verified License Badge is for businesses on Houzz Pro. With one glance, this Badge helps you:

• Let homeowners know that your business is licensed by state industry experts.
• Stand out from the competition while homeowners consider who to hire
• Add credibility to your company name, providing peace of mind to future clients

Here are the steps you can take to add a verified license to your Houzz profile. If you haven’t created a free profile on Houzz, sign up today and get ready to make a bigger impact with your business’ online presence.