If you want to work as a contractor in the State of Louisiana, you will need to get a contractor license. The Louisiana State Licensing Board for Contractors (LSLBC) handles contractor licensing and has set specific requirements you must meet before you can receive your license.
In this guide, we will take you through all the steps you need to follow to get your Louisiana contractor license.
Step 1: Determine license type
The first step to becoming a licensed contractor in Louisiana is to determine what type of license you need. The LSLBC offers several license classifications, each permitting the contractor to perform a certain type of work. This includes:
- Commercial contractor license: Lets contractors work on commercial projects valued over $50,000.
- Residential Contractor license: Lets contractors work on projects for single-family homes, duplexes, and triplexes that are valued at over $75,000.
- Mold Remediation License: Lets contractors work on various projects involving hazardous materials.
- Electrical contractor license: Lets contractors work on electrical projects over $10,000 in value.
- Plumbing contractor license: Lets contractors work on plumbing projects valued over $10,000.
Subcontractors working on any of these projects must get a license if the value of the labor and materials exceeds $7,500.
Step 2: Register your business
All Louisiana contractors must register their business with the Louisiana Secretary of State before applying for a contractor license. You can complete the process online using the geauxBIZ web portal.
Step 3: Get insurance coverage
Contractors looking to get a residential license are required to get general liability insurance with at least $100,000 of coverage. If your business plans to employ more than two people, you will need to get workers compensation insurance as well.
Step 4: Get a surety bond
The LSLBC requires commercial and residential contractors to provide current financial statements verifying at least $10,000 net worth. Contractors that do not meet the minimum net worth requirements can post a Louisiana surety bond in its place. The bond provides an alternative form of financial protection to those who may be damaged by the contractor’s work.
The total bond amount for Louisiana contractor license bonds is the same as the net worth requirement ($10,000). You only need to pay a small percentage of this amount as a premium, typically between 1% and 5%. The surety company will determine your exact premium by evaluating your credit history, industry experience, and other factors.
Some local municipalities throughout Louisiana have their own bonding requirements for contractors. You should check with your jurisdiction to see if there are any other bonds you need to get.
Step 5: Submit contractor license application
After you’ve met all the licensing requirements, you can go ahead and complete the contractor license application. The application packets for each classification are available on the LSLBC website.
Your application will need to include the following supporting documents:
- Business formation documents
- Personal financial statements
- Proof of liability insurance and workers’ compensation insurance
- Proof of Mold Remediation certification (mold remediation contractors only)
- Payment for all applicable fees
Once you have gathered everything you need, you can send your application packet to the following address:
2525 Quail Drive,
Baton Rouge, LA 70808.
Step 6: Pass the knowledge exam
The final step of the licensing process is to pass the knowledge examinations. If the LSLBC approves your application, they will mail you an exam approval letter and your exam ID to take the test.
There are two exams you need to pass to get your license. The first is the Louisiana Business and Law exam. The other is a trade-specific exam which varies depending on the license classification.
The business and law exam has a one hour time limit and you must score over 70% to pass. You can take the exam online and receive your results immediately.
Trade specific exams are administered at local testing centers. There are between 50 to 115 questions depending on the classification. Like the business and law exam, you need to score adobe 70% to pass.
The business and law exam and the trade exams both require a $120 exam fee.
Louisiana contractor license frequently asked questions
How do you renew a Louisiana contractor license?
Louisiana contractor licenses are valid for a one year period. You must renew your license 30 days prior to the expiration date online using the LSLBC renewal web portal.
How much does a Louisiana contractor license cost?
Louisiana contractors must pay a $40 background check fee, a $120 business exam fee, and a $120 trade exam fee.
How long does it take to get a Louisiana contractor license?
After the Louisiana State Licensing Board for Contractors receives your application, it will take between four to eight weeks to process it.
How EZ Surety Bonds can help with a Louisiana contractor license
These are all the steps needed to get your Louisiana contractor license. If you need a surety bond to replace the wealth requirement, EZ Surety can help you get bonded quickly and conveniently.
We provide competitive premiums and fast turnarounds for dealers of all experience levels and financial standings. Apply online or get in touch to learn more.