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How To Obtain Your Contractor’s License In Louisiana
If you are a resident of Louisiana and want to obtain your license to become a concrete contractor, then we can help you. Meeting all of the licensing requirements will pave the way for you to start your business and have a successful career. We want to help explain the application process as well as the exams you need to pass to obtain your Louisiana contractor’s license.
Who Needs A
License?
The Louisiana State Licensing Board for Contractors (LSLBC) is responsible for overseeing the licensing process. What type of contracting services that require a license to operate? The Board categorizes each license according to the scope of work you perform and the contract price of the anticipated projects.
Types of
Licenses
The state of Louisiana issues three main classifications of licenses for general contractors. They include a commercial license, a residential license, and a home improvement registration. Here’s what you need to know about them:
Commercial
Contractors Licenses
This type of license is suitable for concrete contractors that work on commercial projects that exceed $50,000 in price when it comes to labor and material costs. These are projects that often require you to hire subcontractors and specialty trade contractors.
Residential
Contractors License
A Residential Contractor License is ideal for concrete contractors that routinely work on projects that exceed $75,000. This includes work involving home improvement or the new building of one to four-unit family dwellings. Subcontractors working on the project with you will also need to possess the proper licensing (unless the price of the contract does not exceed $75,000).
Home Improvement
Registration
The third main type of license is suitable for contractors performing home improvement projects that are more than $7,500 but don’t exceed $75,000. However, this license doesn’t cover any work as it relates to building and remodeling indoor or outdoor swimming pools (which require a specialty license).
Registering
Your Business
Before you begin filling out your application for your license, you will need to register your business with the Louisana Secretary of State’s office. Failing to register your business will prevent you from obtaining your license. You can undergo the registration process online, but you will need to determine your business structure ahead of time.
Each structure and business entity has its benefits and drawbacks – especially when it comes to how you plan on filing your taxes. The different structures include a sole proprietorship, partnership, corporation, or LLC. To learn more about the properties of each entity, we encourage you to visit the website of the US Small Business Association. They offer a simple breakdown of how each type of business structure works.
Completing
Your Application
Now that you know your business structure and the type of license you need to obtain, you need to fill out the application. You can easily access the form on the website for the official website for the Licensing Board. Here is some information that you will need to include in your application:
- Business Registration Information – If you have yet to register your business with the Louisiana Secretary of State, then do this immediately. You will receive a certificate that verifies your registration. Also, you’ll need to include any partnership agreements, articles of organization, or any other relevant business documents with your application.
- Qualifying Individual Information – The state of Louisiana requires that you submit information about the qualifying individual. If you are applying for a license on behalf of a company, then you will need to submit information regarding at least one licensed representative. This includes basic stuff such as their name, address, birthday, social security number, email address, and so on.
- Financial Statement – To become a concrete contractor, you must submit a financial statement. The statement must show that you have a net worth of at least $10,000. You also need to have an independent accountant prepare the document. If you don’t possess $10,000, then you can apply for a line of credit to meet this requirement.
- Insurance Certificates – Your insurance coverage should include General Liability and Workers’ Compensation. General Liability insurance should cover up to $100,000.
- Application & Exam Fees – Submitting a single application will cost $100, and you will need to pay $120 each time you take an exam.
Passing
Your Exams
Once the Board approves your application, you can then register to take your exams. The two exams that you will need to complete and pass include the Business and Law exam, and the other one will depend on the type of license and classification selected in your application. You will have an hour
to complete the Business and Law exam (which is open-book). It will cover various topics, including contract management, job safety, tax basics and more. The Trade exam can be either open- or closed-book depending on the classification of your license, and the exams range from 50 to 115 questions.
You will need a score of at least 70% to pass each exam. There is also no delay in learning the results of your tests – the scores are computed immediately. If you didn’t pass, you’ll have to wait 30 days to retake it. However, if you pass both exams, you will receive your license and you can immediately begin providing services as a concrete contractor in the state of Louisiana!
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