The Louisiana State Licensing Board for Contractors (LSLBC) is a very useful place for Louisiana contractors. I was recently reading up on the requirements for home improvement contractors. The LSLBC is a one stop shop for all things related to contractor licensing. It is a good place for both contractors and consumers. Contractors can find out information on commercial, residential, home improvement and mold remediation.
Qualifications for Home Improvement License
All home improvement contracts over five thousand dollars and up to seventy-five thousand dollars need to be in writing. In order to be considered a Home Improvement Contractor you must register with the LSLBC. The application is located at this link. This application is less formal than the Residential Contractor license application. The process is also more relaxed. Further, there is no test.
The contractor who is applying for the Home Improvement license needs to provide general liability insurance and show that the contractor or the registering entity is registered with the Louisiana Department of Revenue.
Of course there are fees associated with this filing but that is very expected. The LSLBC will deliver the certificate of registration to the applicant who has been approved. These certificates are non-transferable.
Persons Who Do Not Need the Home Improvement License
Generally there are persons and entities who do not need the protection of a Home Improvement License. If a homeowner physically performs work on his personal residence then he does not need to get this license, no matter the cost. This does not mean that the homeowner does not need to abide by local permitting rules and regulations.
A contractor can perform work without the Home Improvement license if the home improvement work has a “value” of less than seven thousand five hundred dollars ($7,500). Many times contractors try to circumvent the licensing requirement by making contracts for $7,500 or less when the work is really more than that. The LSLBC rule states that the value to the home must be less than $7,500. This is an objective standard.
Of course other contractors who have a better license do not need this one, such as commercial and residential contractors.
Other Aspects to Consider
Contractors who are getting licensed for the first time should consider contacting an attorney so that they can get protective language put in invoices, and properly drafted contracts. It is always smart to properly form an entity such as and Limited Liability Company (LLC) to protect personal assets. Other helpful documents include demand letters, lien waivers and filing of liens when payment is not received. Companies such as zlien.com are very good with helping contractors manage notice and lien compliance.