How to Get a Louisiana Contractor License
If you want to be a contractor in Louisiana, you may need to get a contractor license along with the relevant contractor license bond.
Contractors in the state are required to obtain a commercial or residential contractor license from the Louisiana State Licensing Board for Contractors in order to work on projects above a certain value or where the cost of labor and materials exceeds a certain price. To perform mold remediation you also need to get licensed.
See the guide below for full information on how to obtain your Louisiana contractors license.
Louisiana Contractor License Types
There are three types of licenses that contractors can obtain in Louisiana: a commercial contractor license, a residential contractor license, and a mold remediation license. According to the State of Louisiana Contractors Licensing Law and Rules and Regulations, those licenses are not required of all residential or commercial contractors but only of those who work on projects that are above a certain value.
Commercial Contractor License
To work on commercial projects with a value of $50,000 or more, contractors need to obtain a commercial contractor license. Subcontractors and specialty trades working on commercial projects over $50,000 also need to get licensed.
There are two exceptions to the above requirement:
- Electrical/Mechanical/Plumbing contractors need to get licensed and obtain relevant specification for all commercial projects exceeding $10,000 (incl. labor and materials).
- Contractors working with asbestos, hazardous waste, lead-based paint abatement/removal or underground storage tanks need to get licensed and obtain relevant specification for projects with a value of $1 or more.
Residential Contractor License
For residential projects, i.e. new single family residential homes, duplex, triplex and fourplex projects, where the cost of undertaking exceeds $75,000, a residential building contractor license is required.
Subcontractors and specialty trades need to get licensed for all of the above-listed projects where labor and materials are $7,500 or more. This includes the following specialties:
- Pile Driving
- Swimming Pools
According to paragraph 7 of §2150.1. of the Licensing Law, all contractors performing home improvement work are also required to become licensed as residential contractors.
Mold Remediation License
Akin to commercial contractors handling hazardous materials, all contractors working on projects concerning mold remediation that are over $1 in value also need to get a license.
Breakdown of Louisiana Contractor License Application Requirements
Application requirements for commercial and residential contractors are mostly similar. Here are the requirements that apply both to commercial and residential contractors in Louisiana.
- Complete the Louisiana State Application for Original Contractor’s License and specify the desired license
- Provide a current financial statement that proves a minimum of $10,000 net worth
IMPORTANT: According to the license issuance requirements specified in §2156.1(C) of the Licensing Law, individuals who do not have a net worth in this amount and cannot provide a financial statement, may furnish the board with a surety bond in the same amount which will be deemed satisfaction of this requirement.
Applicants who have a negative net worth must include the amount of the negative net worth to the required amount of the surety bond when posting a bond. For example, if you are negative worth is $4,000 and the required bond amount is $10,000, your actual bond amount will have to be $14,000.
For more information on Louisiana contractor license bonds, see the section below, detailing how bonds work.
- Pass all relevant Louisiana contractor license exams
- Pay all relevant fees
- Be approved by the Licensing Board
Additionally, residential contractors must provide proof of general liability insurance of at least $100,000 and proof of workers’ compensation coverage and maintain these at all times.
Residential contractors must also complete at least six hours of continuing education each year and provide proof thereof to be eligible to renew their license.
Contractors who are licensed in other states may be able to make use of the Reciprocity and Examination Endorsement Agreement that allows contractors to receive credit for exams they have already passed in another state. It can also be used by current Louisiana contractors when applying for a license elsewhere.
Both residential and commercial licenses are initially issued for the period of one year but can be extended for one, two or three years once this initial licensing period concludes.
Louisiana Mold Remediation License Application Requirements
In addition to the above requirements that are valid for both commercial and residential contractors, mold remediation professionals in Louisiana must further:
- Complete 24 hours of mold remediation and mold assessment training and provide proof of training certification
- Complete 4 hours of instruction in Louisiana’s Unfair Trade and Consumer Protection Law
- Provide proof of general liability insurance of at least $50,000 and proof of workers’ compensation coverage and maintain these at all times
Once you have provided all of the required proof and submitted your application, along with a surety bond (if needed) you will receive notice from the Board in due time whether your application has been approved.
Louisiana Contractor License Bond Details
As mentioned above, a contractor license bond in Louisiana is only needed for those contractors who cannot furnish a current financial statement of at least $10,000 net worth. It also concerns those contractors who wish to get bonded but have a negative net worth.
To get a contractor license bond, applicants must apply for one with a surety bond agency and get a quote. Your surety bond cost is not the same as the total bond amount required. For example, if you must provide a $10,000 contractor license bond as a guarantee to the Licensing Board, the cost of your bond may be as little as 0.75% – 2.5% of the full bond amount if you have good credit. In other words, obtaining such a bond would vary between $100 and $250.
Get a Free Bond Quote Now!
If you need a contractor license bond and want to get a free quote, just fill in and submit the online surety bond application and we will get in touch with you shortly. You can also contact us by calling us at 877.514.5146 if you have any questions you would like to address.
Latest posts by Victor J. Lance, President/Owner (see all)
- A Step-by-Step Guide on How to Become a Freight Forwarder in 2021 - June 14, 2021
- Your Complete Georgia Dealer License Guide  - May 27, 2021
- The Full South Carolina Dealer License Guide  - May 26, 2021