Quick take
- Know your state’s license rules. In Louisiana, for example, home improvement jobs of $7,500 or more need an LSLBC registration, and jobs over $50,000 need a residential license.
- Look up the contractor’s license online. In Louisiana, that’s the free LSLBC Contractor Search.
- Get written estimates and a complete written contract, and never pay 100% up front.
Before you let anyone work on your house, check them out. Here’s how. The license rules below are Louisiana’s, as an example. Other states have their own licensing boards and dollar limits.
This guide is general information, not legal advice. Licensing rules and dollar limits can change, and some trades have their own rules. Check with your state’s licensing board (in Louisiana, the LSLBC) for your exact project, and talk to an attorney if you have a legal question.
1. Know when a state license or registration is required
In Louisiana, the Louisiana State Licensing Board for Contractors (LSLBC) sets these thresholds. Project value includes labor and materials:
- Home improvement work on an existing home (repairs, renovation, remodeling) of $7,500 or more requires a home improvement registration.
- Home improvement projects over $50,000, and residential construction over $50,000, require a residential license.
- Mold remediation projects of $7,500 or more require a mold remediation license.
- A local occupational license is not a contractor’s license. Registering with the Secretary of State doesn’t qualify a company to do construction work either, according to the LSLBC FAQ.
2. Look them up online
Most state licensing boards have a free online lookup. In Louisiana, use the LSLBC Contractor Search. You can search by company name, license number, city, parish or type (Residential or Home Improvement). The LSLBC says licensed contractors must bid and contract in the name on their license, not a “DBA.” So make sure the name on your estimate matches the license record.
Residential, home improvement and mold licensees must carry general liability insurance (at least $100,000) and workers’ compensation, according to the LSLBC. Ask for a certificate of insurance anyway.
3. Get multiple written estimates
The FTC recommends getting several written estimates that list the work, materials, completion date and price. Don’t automatically pick the lowest bid, and ask why if the prices are far apart.
4. Read the contract before you sign
The FTC says a contract should include:
- The contractor’s name, address, phone number and license number
- Estimated start and completion dates
- Every promise made in conversation about scope, labor and materials
- A written notice of your right to cancel within three business days if you signed at home
Make sure no blank spaces are left. Don’t pay the full amount up front, and hold the final payment until the work is done and you’re satisfied.
Red flags (from the FTC)
- Knocking on your door to say they’re “in the area” or have “leftover materials”
- Pressuring you to decide right away
- Asking for everything up front, or cash only
- Asking you to get the building permits
- Pushing you toward a lender they know
Door-to-door pitches are common after storms. Our storm damage guide covers contractor rules for insurance claims.
If something goes wrong
Try to work it out with the contractor first. Follow up phone calls with a letter sent by certified mail. If that doesn’t work, the FTC suggests contacting your state attorney general or local consumer protection office. In Louisiana, that’s the Attorney General’s Consumer Protection Section. You can also file a complaint with the LSLBC, including about unlicensed contracting.