Louisiana Contractor License Requirements
The Requirements That Trip People Up
Louisiana contractor license requirements have changed enough in 2026 that guides written even 12 months ago can steer you wrong. The biggest shift: Act 757 raised the minimum general liability insurance from $100,000 to $500,000 for residential contractors. If you're working from an older checklist, you'll submit the wrong coverage and get sent back.
Here's what the LSLBC actually requires, current as of 2026.
Net Worth and Financial Documentation
The LSLBC requires a CPA-prepared financial statement demonstrating minimum net worth based on your license type:
- Commercial and Residential Construction: $50,000 minimum net worth
- Home Improvement and Mold Remediation: $25,000 minimum net worth
Several widely-cited guides still reference $10,000 as the net worth threshold. That number is outdated. The current controlling statute is R.S. 37:2156.1.
The financial statement must be notarized. For major classifications, the board requires a compilation or formal review prepared by an independent CPA. If your entity's net worth falls short, you can cover the gap with an Irrevocable Letter of Credit from a bank — the LSLBC does not require a state-level surety bond.
Insurance Requirements (Post-Act 757)
Since August 1, 2026, residential construction, residential subclassification, mold remediation, and home improvement contractors must carry:
- $500,000 minimum commercial general liability (up from $100,000)
- Workers' compensation per La. R.S. Title 23
The general liability policy must cover at least six continuous months and cannot exclude your licensed scopes of work. Both certificates must name the LSLBC as the certificate holder and be emailed directly by your insurance broker to the board.
Commercial licensees are exempt from filing insurance with the LSLBC but must still carry both coverages to satisfy parish permit offices and project owners.
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Qualifying Party
Every business applying for an LSLBC license must designate a qualifying party — the person who demonstrates the technical competence to perform the work. Under La. R.S. § 37:2156.1D(1), eligible qualifying parties include:
- Sole proprietors
- Active partners
- LLC members or managers
- Corporate officers
- Full-time W-2 employees of the firm
The qualifier completes a background disclosure through the LSLBC portal. Criminal convictions don't trigger automatic denial — the board evaluates offenses related to contracting, fraud, or false records. Outstanding child support delinquencies, however, are an absolute bar until resolved.
If your qualifying party leaves the firm, you have 30 days to notify the LSLBC and a limited window to replace them before your license is suspended.
Testing Requirements
Business and Law Course: Every qualifying party completes this online through the LSLBC portal — it's an open-book course, not a proctored center exam. The 50-question test requires a 70% passing score. Qualifiers who already passed it for another active Louisiana license are exempt.
Trade Exam: For commercial, residential, and specialty classifications, the exam is administered by PSI Services at testing centers across Louisiana. Fees range from $120 to $175. The commercial Building Construction classification accepts the NASCLA accredited exam, which transfers to reciprocal states.
Home Improvement registrants are exempt from the trade exam and must complete the Business and Law course. Mold Remediation applicants complete 24 hours of specialized training instead of a trade exam.
Business Entity Formation
Before applying to the LSLBC, set up your business structure. For an LLC, corporation, or partnership, register through the GeauxBIZ portal; the board requires the resulting Charter Number on the application, and you need a federal EIN from the IRS. A sole proprietor may instead apply under a personal Social Security number.
Project Value Thresholds
The license type you need depends on what you're building and for how much:
- Commercial: $50,000+ in total contract value (labor and materials)
- Residential Construction: More than $50,000 for new ground-up builds (single-family through fourplex, up to 3 stories)
- Home Improvement: $7,500 to $49,999 for work on existing residential structures
- Specialty Trades (electrical, mechanical, plumbing): $10,000+
- Mold Remediation: $7,500+
- Residential Roofing (under Act 422, effective January 1, 2026): $7,500+
Splitting contracts to stay under a threshold is a severe violation subject to fines and stop-work orders.
What the State License Doesn't Cover
An LSLBC license lets you act as a contractor statewide, but it doesn't let you break ground. Every parish retains authority over building permits, zoning approvals, and occupational license taxes. You need both layers — state and local — to operate legally.
Our Louisiana General Contractor License Guide walks through every requirement in chronological order, including document preparation worksheets that help you get your financial statement and application right the first time.
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