As a contractor, be aware of all potential licensing requirements before engaging in any work or beginning a new project.Depending on the sort of contractor you are, your licensing requirements may differ. At Smiley Law, we regularly help our clients navigate the regulatory framework of their licensing needs.
Here are some key qualifications to keep in mind:
- Home Improvement Contractors needs a “certificate” (not a license) for all contracts over $7,500 but below $75,000, unless the work is being performed on one’s own property.
- In order to be considered a Home Improvement Contractor you must register with the Louisiana State Licensing Board for Contractors (LSLBC). This application is less formal than the Residential Contractor license application.
- The contractor who is applying for the Home Improvement certificate needs to provide general liability insurance and show that the contractor or the registering entity is registered with the Louisiana Department of Revenue.
- If a contractor is not properly licensed to be a home improvement contractor, and that contractor is not paid on the home improvement project, that contractor is legally prohibited from filing a lien on the project.
- The Licensing Board has formal written reciprocal agreements with several states, including Alabama, Arkansas, Mississippi, Tennessee and Utah. Reciprocity is not automatic, however, and applications are considered on a case-by-case basis. You may be charged up to $400 for the Board’s investigation into your out-of-state license.
- Pre-approval is generally required.
- Some Continuing Education credits are required to maintain licenses in Louisiana.
- Depending on the sort of license you are applying for, you may be required to pass an exam.
- It may be smart to properly form an entity such as and Limited Liability Company (LLC) to protect personal assets.
- If this is your first time getting licensed as a contractor, make sure to consult with an attorney about the sort of protective language you need in your contracts and invoices. Incorporating the right terminology now can save you thousands later.
The LSLBC is a great resource for all contractors to help figure out their licensing requirements. Here at Smiley Law, we are ready to take on all your licensing questions. Cal us today for all your licensing needs.