How to Get a Louisiana Contractors License

Thinking about starting a construction business in Louisiana? Your first step to launching your contractorship is to get a Louisiana contractors license. This is necessary to ensure that you meet all state requirements to operate in the industry.

The licensing process entails completing a number of criteria set by the Louisiana State Licensing Board for Contractors. Additionally, you might need to meet local and city licensing requirements, such as posting a Louisiana contractor license bond.

Let’s review the licensing process in detail, so you are prepared to go through it with ease.

Choosing your Louisiana contractors license class

Your first step in getting licensed in Louisiana is to choose your license type.

There are four main classes in the state:

• Commercial License – projects over $50,000
• Residential License – projects over $75,000
• Mold Remediation License
• Home Improvement Registration – projects between $7,500 and $75,000

Depending on the main activity you would like to engage in, you need to obtain the appropriate license class. The licensing requirements vary between the types.

Meeting the licensing requirements

The purpose of getting a Louisiana contractors license is to guarantee that you comply with all rules set forth in the Louisiana contractors license law (Contractors Licensing Law and Rules and Regulations). For some license types, you need to take relevant contractor license exams.

Commercial License

To get a Commercial license, you need to meet the following criteria:

• Completing the application form (the same for Commercial, Residential and Mold Remediation licenses)
• Passing of Business & Law and Trade exams; for some classifications, further exams may be needed
• Business entity documents
• Financial statement for net worth at a minimum of $10,000
• Payment of relevant license fees

Residential License

The requirements for Residential License include:

• Completing the application form
• Passing of Business & Law and Trade exams
• Business entity documents
• Financial statement for net worth at a minimum of $10,000
• Payment of relevant license fees

Mold Remediation License

Getting a Mold Remediation License entails:

• Completing the application form
• $50,000 minimum liability insurance and workers’ compensation coverage
• Proof of 24 hours of approved mold remediation and mold assessment training
• Passed examinations – Business & Law, four hours of instruction in Louisiana’s Unfair Trade and Consumer Protection Law
• Board approval
• Business entity documents
• Financial statement for net worth at a minimum of $10,000
• Payment of relevant license fees

Home Improvement Registration

The licensing requirements include:

• Filling in a Home Improvement Registration Application
• $100,000 minimum liability insurance and workers’ compensation coverage
• Board approval
• Business entity documents
• Financial statement for net worth at a minimum of $10,000
• Payment of relevant license fees

The first license you obtain is valid for one year. Afterwards, you can get a Louisiana contractor license renewal for one, two or three years.

Getting bonded

In order to operate legally, you might also have to post a Louisiana contractor license bond. This may be required from your county, township or city authority. The goal of the bond is to provide extra protection for the licensing body and your customers that you will follow all applicable laws and will fulfill your contractual obligations.

Typically, the bond amount depends on the amount of construction work you are executing or are projected to complete. In some cases, the amount is fixed for all contractor license applicants. For example, in the City of Lake Charles, you have to post a $5,000 Louisiana contractor bond. However, in Ascension Parish and Gonzalez, your bond amount is set on a case-by-case basis.

The bond price that you will need to pay to get bonded is only a percentage of the bond amount you need to post. This is called the bond premium. If you are a standard market applicant, you can expect a rate in the range of 1%-3%. Thus, for a $5,000 bond, your cost may be around $100.

If you need to obtain a bond, you can apply online for a free quote. For any questions, just call us at 866.450.3412.