Last verified against the Louisiana State Licensing Board for Contractors on 6 September 2026. Reviewed by Tyler Williamson, Licensed Property & Casualty Insurance Agent, North Carolina.
Louisiana does not have one contractor license with one threshold. It has four separate credentials, and the value that triggers each one is different. The lowest is $7,500, which requires a home improvement registration. Commercial and residential work triggers a full license at $50,000. Electrical, mechanical and plumbing work triggers at $10,000, and hazardous materials work at one dollar.
Most guides answer “do I need a Louisiana contractor license” with a single number. That is why so many contractors in this state end up holding the wrong credential, or none at all. The right question is which of the four applies to the work you are actually doing, because the answer changes the threshold, the insurance you must carry, and the exam you have to sit.
Do you need a Louisiana contractor license?
Work out which line below describes your project. The value always includes labor and materials.
| Work | Triggers at | What you need |
|---|---|---|
| Hazardous materials — asbestos, hazardous waste, lead-based paint abatement or removal, underground storage tanks | $1 or more | Commercial license |
| Home improvement on an existing residential structure | $7,500 or more | Home Improvement registration |
| Residential swimming pools | Over $7,500 | Residential Swimming Pools classification |
| Mold remediation | $7,500 or more | Mold Remediation license |
| Electrical, mechanical or plumbing | Over $10,000 | Commercial license |
| Commercial construction | $50,000 or more | Commercial license |
| Residential construction | Over $50,000 | Residential license |
| Home improvement on an existing residential structure | Over $50,000 | Residential license |
Two things follow from that table that catch people out.
The hazardous materials line is not a typo. There is no exemption at all. If the job involves asbestos, lead paint removal, hazardous waste or underground storage tanks, you need a commercial license from the first dollar.
And the $10,000 electrical, mechanical and plumbing threshold is a commercial one. It is five times lower than the general commercial trigger, which means a mechanical sub can need a commercial license on a job a general contractor would not.
Why you will see $75,000 quoted for residential work
Search for the Louisiana residential threshold and you will find $75,000 repeated across a great many pages. You will also find it in the Board’s own downloadable rules document, which states that a residential license is required “when the cost of the undertaking exceeds seventy-five thousand dollars ($75,000).”
The Board’s current published threshold is $50,000. Its Types of Licenses page states that a residential license is required for “Residential Construction exceeding $50,000 (including labor and materials)” and for “Home Improvements projects on existing residential structures exceeding $50,000.”
The rules PDF is the older document — it is current through the 2021 Regular Legislative Session, and the threshold was lowered afterward. The same document is out of date on mold remediation, which it gives as one dollar against the $7,500 the Board publishes today.
We are flagging this rather than quietly picking a number because the gap between the two figures is $25,000 of work you might do unlicensed on the strength of a stale page. Use $50,000, and confirm it with the Board before you rely on it for a specific contract. Their number is 225.765.2301.
The four license types
| Type | Covers |
|---|---|
| Commercial | Any construction project except residential structures with no more than two incorporated or attached dwelling units. Includes specialty trade subcontractors on commercial work. |
| Residential | Buildings used primarily as a residence — single family dwellings and duplexes not more than three floors in height, and adjacent structures. |
| Mold Remediation | Mold remediation projects. The qualifying party must hold 24 hours of training in mold remediation and basic mold assessment. |
| Home Improvement (registration, not a license) |
Reconstruction, alteration, renovation, repair, modernization, conversion, improvement, removal, demolition, or an addition to a pre-existing residential structure. |
A licensed residential contractor may bid on or contract for residential swimming pools, but must use a subcontractor holding the Residential Swimming Pools classification if they do not hold it themselves.
Home improvement registration: the $7,500 tier
This is the credential most small residential outfits in Louisiana actually need first, and the one most often missed.
It is a registration rather than a license, and it covers home improvement work on existing residential structures from $7,500 upward. Above the residential threshold you must hold the residential license instead — the registration does not stretch to cover a large job.
Two useful details. Contractors who already hold a valid commercial or residential license with the Board are exempt from the registration requirement, so you do not stack them. And the statutory definition of home improvement excludes “services rendered gratuitously” — unpaid work does not count toward the threshold.
Proving financial responsibility
Louisiana asks for a financial statement, and the bar is lower than most states.
The statement must be current to within twelve months of filing, prepared by “an accountant, bookkeeper, or certified public accountant,” and signed by the applicant before a notary public. Note the wording — a bookkeeper is explicitly acceptable. You do not need a CPA.
The statement must show a net worth of at least $10,000.
If you cannot show it, there is a route most guides omit entirely. The statute allows an applicant without the required net worth to furnish “a bond, letter of credit, or other security acceptable to the board” in the amount of the net worth requirement plus the amount of any negative net worth. Doing so “shall be deemed satisfaction of the net worth requirement for all purposes.” A new business with thin books is not shut out — it posts security instead.
Financial statements you submit are confidential by statute and are not subject to Louisiana’s public records law.
Do you need insurance for a Louisiana contractor license?
Yes, and you cannot get licensed without it. This is where Louisiana differs sharply from some other states — North Carolina, for instance, requires no insurance at all to hold a general contractor license.
Residential, home improvement and mold remediation applicants must submit certificates evidencing:
- Workers’ compensation coverage in compliance with Title 23 of the Louisiana Revised Statutes. The Board’s own FAQ states there are absolutely no exceptions to this requirement.
- General liability insurance — a minimum of $100,000 for residential and home improvement, and $50,000 for mold remediation.
Coverage must be in place at application and maintained at renewal. Proof must be submitted before a license or registration can be issued, so this is not something to arrange after approval.
The Board’s FAQ does not set out commercial insurance requirements in the same terms. If you are applying commercially, confirm what is required for your classification directly with the Board rather than assuming the residential figures carry over.
One practical note on the $100,000 minimum: it is a licensing floor, not a commercial one. General contractors and awarding authorities routinely require $1 million per occurrence before they will let you on site, and your certificate will be checked. Meeting the state minimum and stopping there is how contractors find themselves licensed but unable to bid.
The exams
The qualifying party must complete the Louisiana Business and Law course, and an exam or administrative fee is charged for each classification as well as for Business and Law.
The Business and Law exam is 50 questions, takes roughly 30 to 45 minutes, and requires a score of 70 or above to pass.
Trade exams are separate and depend on the classifications you apply for. Since 5 August 2025, all trade exams are administered by PSI. Once the Board approves you for testing, PSI sends an eligibility letter with instructions for registering an account and scheduling.
Fees
The figures below are the statutory maximums set in law — the amounts the Board may not exceed. They are not necessarily what you will be charged today. Confirm current fees on the application itself.
| Item | Statutory cap |
|---|---|
| Examination fee (residential) | $50.00 |
| License fee (residential) | $100.00 |
| Renewal fee (residential) | $100.00 |
| Delinquent fee (residential) | $50.00 |
| Application for license (mold remediation) | $100.00 |
| License renewal (mold remediation) | $100.00 |
| Delinquent renewal (mold remediation) | $50.00 |
Louisiana does not require a surety bond as a standard condition of licensure. A bond appears only as the alternative route through the net worth requirement described above.
A residential building contractor who performs mold remediation within the scope of their existing license is not charged the separate mold fee.
Who is exempt
Three exemptions matter, and one of them is unusual enough to be worth knowing about.
- Homeowners. Property owners who supervise or direct construction on their own personal residence are exempt, provided they do not build more than one residence per year. The one-year period runs from the date of occupancy. There is an exception allowing a second personal residence within the year where the owner’s marital status changes, or their employment requires relocation more than fifty miles away.
- Areas with no permitting procedure. Persons performing residential building contractor work “in areas or municipalities that do not have a permitting procedure” are exempt. Louisiana has a great deal of unincorporated parish land, and this exemption is real — but confirm the parish position before relying on it.
- Farmers doing construction for agricultural or related purposes on land they own or lease.
Critically, these exemptions cover the owner, not the trades they hire. The statute applies to any contractor employed by an exempt person, except contractors employed for remodeling purposes. A homeowner acting as their own general contractor does not make their subs exempt.
Renewal and continuing education
An initial license runs for one year. After that you elect a renewal term of one, two or three years — the Board issues on a multiple-year basis up to a three-year maximum, and new applicants choose their term at application.
You have fifteen days after expiration to renew without penalty and without re-examination. Past that, renewal is at the subcommittee’s discretion and may carry a penalty of up to $50.
Residential building contractors must complete a minimum of six hours of continuing education annually through a Board-approved provider, and must keep the certificate of completion for five years. Failing to complete it can subject the license to suspension or revocation.
There is an exemption: a residential building contractor who also holds a current license in building construction; highway, street and bridge construction; heavy construction; or municipal and public works construction does not need the six hours.
Step by step
- Identify which credential your work triggers using the threshold table above. Get this wrong and everything after it is wrong.
- Register the business entity with the Louisiana Secretary of State and confirm it shows as Active and In Good Standing. Sole proprietors are excepted; everyone else needs Articles of Incorporation, Articles of Organization, or a partnership agreement.
- Nominate your qualifying party and have them complete the Louisiana Business and Law course.
- Prepare the financial statement — within twelve months, prepared by an accountant, bookkeeper or CPA, notarised, showing $10,000 net worth. Or arrange a bond or letter of credit instead.
- Arrange insurance. Workers’ compensation and general liability at the required minimum. You will not be issued anything without the certificates.
- Submit the online application with Social Security numbers and dates of birth for each individual listed.
- Sit the exams. Business and Law, plus any trade exams for your classifications, through PSI once your eligibility letter arrives.
- Receive the license. The Board notifies you by email, the certificate prints from the Contractor Portal, and the original is mailed to your address on file.
Frequently asked questions
How do I get a contractor’s license in Louisiana?
Determine which of the four credentials your work requires, register your business with the Secretary of State, have your qualifying party complete the Business and Law course, submit a notarised financial statement showing $10,000 net worth, provide certificates of workers’ compensation and general liability insurance, file the online application, and pass the Business and Law exam plus any trade exams through PSI.
Do contractors have to be licensed in Louisiana?
Yes, above the relevant threshold. That is $50,000 for commercial and residential construction, over $10,000 for electrical, mechanical and plumbing, $7,500 for home improvement and mold remediation, and one dollar for hazardous materials work.
How long does it take to get your contractor’s license in Louisiana?
The Board does not publish a processing timeframe. Its stated process is that staff review the application, notify you by email, and issue the license once all requirements are met — you can track status in the LSLBC Contractor Portal at any time. The variables within your control are the financial statement, the insurance certificates and exam scheduling.
What types of contractor licenses are available in Louisiana?
Four: Commercial, Residential, Mold Remediation, and Home Improvement registration. Each has its own threshold and its own requirements, and commercial and residential licenses carry classifications and subclassifications for specific trades.
How much does a Louisiana state contractor’s license cost?
The statutory caps for a residential license are $50 for the examination, $100 for the license and $100 to renew. Those are maximums set in law rather than confirmed current charges, and they exclude the cost of the financial statement, the Business and Law course, trade exam fees per classification, and insurance.
Can someone be an unlicensed contractor in Louisiana?
Only below the threshold for the work concerned, or under one of the statutory exemptions — homeowners building a single personal residence in a year, work in areas with no permitting procedure, and farmers building for agricultural purposes. The exemptions cover the property owner, not the contractors they hire.
Do I need insurance to get a Louisiana contractor license?
Yes. Residential, home improvement and mold remediation applicants must provide proof of workers’ compensation and general liability insurance — $100,000 minimum for residential and home improvement, $50,000 for mold remediation — before a license or registration is issued. The Board states there are no exceptions to the workers’ compensation requirement.
Sources
- Louisiana State Licensing Board for Contractors — Types of Licenses, FAQ, Checklist of Items Required for Initial License, Exams and Testing, and What Happens After I Apply
- Louisiana Contractors Licensing Law, Rules and Regulations (R.S. 37:2150–2192), published by the Board
Figures on this page were verified against the Louisiana State Licensing Board for Contractors on 6 September 2026. Fee figures shown are statutory maximums, not confirmed current charges. Thresholds and requirements change; confirm with the Board on 225.765.2301 before you apply. This page is research, not legal advice.
