Louisiana Contractor License Bond

What is a Louisiana Contractor License Bond?

In Louisiana, those pursuing a contractor license are required to secure a Louisiana Contractor License Bond as a crucial part of the licensing application process. This bond guarantees that contractors in Louisiana will fulfill their responsibilities in construction projects, adhere to state regulations, and provide compensation to the public if they do not comply with Louisiana's licensing standards, resulting in financial losses.

How much is a Louisiana Contractor License Bond?

Introducing our comprehensive pricing table for Louisiana Contractor License Bonds in various cities across Louisiana. Below are the details of the Louisiana Contractor license bonds available, their coverage amounts, and starting prices:

Ascension Parish Contractor Bond: $5,000, starting at $90
City of Baton Rouge Contractor Bond (Fence): $1,000, starting at $90
City of Baton Rouge Contractor Bond (Electrical, Master Plumber): $5,000, starting at $90
City of Baton Rouge Contractor Bond (General): $10,000, starting at $90
City of Denham Springs Contractor Bond: $5,000, starting at $90
City of Lake Charles Contractor Bond: $7,500, starting at $90
City of Gonzales Contractor Bond: $5,000, starting at $90
City of Sulphur Contractor Bond: $15,000, starting at $90
City of Walker Contractor Bond: $5,000, starting at $90
City of Zachary Electrical Contractor Bond: $5,000, starting at $90
City of Zachary General Contractor Bond: $10,000, starting at $90

What Contractors are Required to be Licensed in Lousiana?

The state of Louisiana requires four main contractor types to be licensed and bonded:

Commercial contractor license
Residential contractor license
Home improvement registration
Mold Remediation

Is Registration as a Contracting Business Mandatory in Louisiana?

It's important to note that registering your contracting business in Louisiana is a prerequisite before applying for a Louisiana contractor license. The process of business registration in Louisiana falls under the responsibility of the Louisiana Secretary of State. There are various business structures available for you to consider, such as:

Sole Proprietorship
Partnership
Corporation
Limited Liability Company (LLC)
Limited Liability Partnership (LLP)

It's crucial to carefully evaluate which structures align best with your business goals and requirements. While the Secretary of State's office can't guide you in selecting a business structure, they recommend seeking advice from professionals such as tax practitioners, accountants, or attorneys to assist you in making an informed decision.

What Does Each Contractor License Cover in Louisiana?

Here's a description of what each required contractor license in Louisiana covers:

Commercial License:

The license is necessary for commercial projects valued at $50,000, including labor and materials.
The license encompasses electrical, mechanical, and plumbing projects exceeding $10,000, including labor and materials.
The license allows projects related to asbestos, hazardous waste, lead-based paint abatement/removal, and underground storage tanks, with a minimum value of $1.

Residential License:

The license is necessary for residential construction exceeding $75,000, covering both labor and materials.
The license applies to residential structures primarily used for occupancy as a residence, such as single-family dwellings, duplexes, triplexes, and fourplexes up to three floors in height.
The license encompasses home improvement projects on existing residential structures exceeding $75,000.
The license allows Residential Construction contractors to bid on or contract to construct or repair residential swimming pools.

Home Improvement Registration:

The license is required for home improvement projects on existing residential structures valued at more than $7,500 but at most $75,000.

Mold Remediation License:

The license is necessary for mold remediation projects valued at $7,500 or more.

These license categories ensure compliance with specific project types and values, promoting safety and quality standards in Louisiana's construction and remodeling industry.

How Can I Get a Contractor License in Louisiana?

A single application form is applicable for commercial, residential, and mold remediation licenses. You can access the application form at the Lousiana Contractor Board website. Below is a general list of all the documents you'll need to complete your contractor license application.

Financial Statement (Required for Commercial, Residential, and Mold Remediation applicants)

An independent, unaffiliated accountant should prepare this. The statement must show that the applicant has a net worth of at least $10,000. If not, the applicant can provide alternatives, such as a Louisiana Contractor License bond, letter of credit, or other security to meet the requirement.

Articles of Incorporation/Organization/Partnership Agreement

If you're a business applying for a Commercial, Residential, or Mold Remediation license, you'll need to provide certain documents based on your business type:
If you're a Corporation, provide a copy of your Articles of Incorporation, By-laws (if they exist), and any amendments to the Business Name.
If you're an LLC, provide a copy of your Articles of Organization, Operating Agreement (if they exist), and any amendments to the Business Name.
If you're a Limited or General Partnership, provide a copy of the Partnership Agreement.

Certificates of Insurance (Not required for Commercial Applicants/Licensees):

General Liability and Workers’ Compensation insurance coverage are required for Residential, Home Improvement, and Mold Remediation applicants/licensees.

For Residential and Home Improvement, provide proof of at least $100,000 in General Liability coverage and Workers’ Compensation.
For Mold Remediation, provide proof of at least $50,000 in General Liability coverage and Workers’ Compensation.

Does Louisiana have Licensing Reciprocity?

As a reminder, licensing reciprocity occurs when states recognize a license obtained in another state, saving the contractor from completing the entire process of getting a new license. This is like how your driver's license works across different states. You don't need to demonstrate your driving skills each time you travel to a new state because they trust the validity of your license from your home state.

For the state of Louisiana, licensing reciprocity is offered for contractors. Check below what states qualify for licensing reciprocity in Louisiana:

California
Utah
Texas
Oklahoma
Arkansas
Mississippi
Tennessee
Kentucky
Ohio
South Carolina
Georgia
Alabama
Florida

It’s important to note that contractors should not have license violations in their home state within the last three years.

Who Regulates Licensing for Contractors in Louisiana?

The Louisiana State Licensing Board for Contractors is responsible for overseeing the licensing criteria applicable to contractors working in the state of Louisiana. To contact them for any questions or issues, you may submit a request using this form.

Phone Number: (225) 765-2301

Mail Address:

Louisiana State Licensing Board for Contractors (LSLBC)

600 North Street

Baton Rouge, 70802

Are There Consequences for Working as an Unlicensed Contractor in Louisiana?

Indeed, there are consequences for operating as an unlicensed contractor in Louisiana. Here are the potential outcomes if you choose to work without obtaining the required license:

The licensing board can impose a fine of up to 10% of the contract's value. If the violation escalates to the courts, the unlicensed contractor may face additional fines for actual damages and be liable for attorney fees and court expenses.
The contract under which the unlicensed contractor is operating will be rendered invalid. As a result, the contractor cannot claim overhead and profit for the project, and any potential recovery would be limited to the costs of materials and labor for the work performed.
Depending on the seriousness of the violation, any involvement of fraud or deception, or a prior history of violations, the Louisiana Licensing Board has the authority to decide whether to impose a temporary suspension or complete revocation of the contractor's license.