2 December 2019
Do you want to become a licensed contractor, handyman, or home renovator in Louisiana, but you’re not exactly sure how to get started?
Getting your Louisiana contractors licensei s the next step in building a long, successful career. No matter your specialty, being a licensed contractor is excellent for business.
But with all the information that exists online today about the process, where do you start? We’ve got you covered.
In this guide, we’ll walk you through everything you need to know about getting your contractor’s license in the state of Louisiana.
Let’s get started.
Not sure if you need to get your contractor’s license, let alone what the benefit of completing the process is to your career? Keep reading.
According to Louisiana Contractor’s Licensing Laws, a contractor is "general contractors, subcontractors, architects, and engineers who receive an additional fee for the employment or direction of labor, or any other work beyond the normal architectural or engineering services."
If what you do falls under one of those categories, you definitely need to get your license—it’s the law. But aside from it being the law, what is the benefit of getting your license?
For starters, being a licensed contractor is great for business. It makes your business official. Not to mention, it can help clients find you through the online contractor search.
Now that we know why it’s important to be a licensed contractor in the Pelican State, let’s take a look at the process of getting your Louisiana contractors license.
From paperwork to taking the contractor’s exam, there are a few boxes you must check to obtain your contractor’s license. All licenses will be approved and issued by the Louisiana State Licensing Board for Contractors (LCLBC).
If you know you want to start a contracting business as well, you’ll need to register your business with the Louisiana Secretary of State in addition to getting your license. You can register your business as a limited liability company (LLC), partnership, corporation, non-profit, or a partnership.
To complete that process, you’ll have to provide the right documentation, including:
To learn more about how to register your business, visit the Louisiana Secretary of State website. Now, let’s take a more detailed look at the contractor’s license application process.
The LSLBC divides contracting specialties into a few categories. Depending on the type of projects you want to take on, you may need to apply for other licenses as well.
Commercial License: If you work on commercial contracting projects over $50,000 (that includes materials and labor), you’ll want to apply for this license. For subcontractors and specialty trade contractors, you’ll need to be licensed, with the following exceptions:
For more details on applying for a commercial license, visit the LSLBC website.
Home Improvement Registration: If you plan on working on home improvement projects that exceed $7,500 but are less than $75,000, this is the license for you. Keep in mind, this registration does not include swimming pools, so if you know you want to take on those types of projects, you’ll have to get an additional license. For more details on obtaining your Home Improvement Registration, check out the LSLBC website.
Mold Remediation License: If you want to work with hazardous materials, you’ll need to apply for this license. For additional details on applying for this license, check out the LSLBC.
Residential License: To work on residential buildings or structures—with no more than four attached or included living units—that will surpass $75,000 in labor and materials, you will need this license. Also, for subcontractors or specialty trades, you’ll need to be licensed if the cost of labor and materials exceeds $7,500. For more information on this license, visit the LSLBC website and the Louisiana Contractors Licensing Law and Rules and Regulations.
Once you know which license you want to apply for, you must provide proof of solid financial standing. An accountant, bookkeeper, or CPA must prepare the financial statement, which needs to prove a net worth of at least $10,000. You must get the statement notarized by an independent auditor.
The unexpected can happen no matter how much we try to plan. That’s why the next step to becoming a licensed contractor in Louisiana is to get the proper insurance. You must obtain general liability insurance and worker’s compensation ($100,000 for residential and $50,000 for mold remediation).
Before you take out any insurance, make sure you get a quote to ensure you’re getting the best coverage at the best price.
You may need to show proof of business insurance to get your license.
That’s where we come in. Compare free insurance quotes for policies as low as $22.50/month.*Start Here >
After you’ve completed the application and provided the necessary documents, send your license application to:
Louisiana State Licensing Board for Contractors 2525 Quail Drive, Baton Rouge, LA 70808
Once your application is approved, you’ll be notified that you are permitted to sign up to take the licensing exam, which we’ll cover in more detail below.
Once you submit your application, you’ll be notified by the LSLBC about the mandatory exam. Every contractor will have to take and pass the Business and Law exam. Specialty trade contractor exams vary depending on the trade.
Does test-taking make you nervous? No fear. The Business and Law exam is open book, which you can take online. The classification exams, however, are done at testing centers. You must score at least a 70 to pass the exam.
Make sure you bring the following with you to the test:
For more details on the license exams and classifications, visit the LSLBC website.
On average, it takes 4 weeks for an in-state license to be issued and 8 weeks for an out-of-state license to be issued.
If you're an out-of-state contractor, plan to wait 60 days from the date your application is received.
Processing the license often depends on a number of facors, including submitting all the required paperwork and fees, and passing any requried exams.
Have you got questions about contractor’s insurance in Louisiana? Our team can help you figure out what you need to make sure you’re good to go. You can also check out our guide on How to Start a Handyman Business for more helpful advice.
* Monthly payment calculations (i) do not include initial premium down payment and (ii) may vary by state, insurance provider, and nature of your business. Averages based on January - December 2020 data of 10% of our total policies sold.
I’m a writer who specializes in creating value-packed blog content for eCommerce and SaaS companies and small businesses. When I'm not writing, I’m probably out running, checking out a thriller novel—or two—from the library, or trying to pet the nearest dog.
This content is for general, informational purposes only and is not intended to provide legal, tax, accounting, or financial advice. Please obtain expert advice from industry specific professionals who may better understand your business’s needs. Read our full disclaimer
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