Moving to Louisiana as a residential contractor: every state's rule

1. 1Trade exam. Pass the destination's trade exam. Louisiana Residential Construction examination, taken by the qualifying party at a PSI test center after the Board approves the qualifying party: 80 questions, 180 minutes, open book, 56 correct (70%) to pass. It is waived for a qualifying party with a passing NASCLA Accredited Examination result sent directly by NASCLA, or one who holds a Board-issued Building Construction license..
2. 2Law / code exam. Pass a law, rules, or code exam. Louisiana Business and Law: an online course taken in the LSLBC Contractor Portal after the qualifying party is approved, ending in a 50-question test that takes about 30 to 45 minutes. A score of 70 or above is required. Every license must have a qualifying party for Business and Law, and it is never waived..
3. 3Exam fee. Pay the exam fee ($140). Paid to PSI when scheduling the Residential Construction exam, for each attempt including retakes. The fee is forfeited unless the appointment is cancelled at least two days ahead..
4. 4Application fee. Pay the application fee. Fees are paid through the online application and are nonrefundable. The Board does not publish the fee schedule for a new application; its forms for existing licensees charge $150 for Business and Law, $95 a year per classification and a $40 processing fee per classification, and La. R.S. 37:2156 caps the basic license fee at $100. A contractor not domiciled in Louisiana may be charged a surcharge of up to $400. A one-time waiver of initial licensing fees is available to applicants receiving SNAP, TANF, Medicaid, disability insurance or public housing, or earning under 200% of the federal poverty guidelines. Ask the Board on 225.765.2301 for the current amounts..
5. 5Financial responsibility. Show financial responsibility of at least $50,000. LSLBC Financial Statement form showing a net worth of at least $50,000, current within twelve months and prepared and signed by a certified public accountant, accountant or bookkeeper as well as by the applicant; a CPA-prepared statement may be attached instead. A shortfall may be covered by an irrevocable letter of credit for the required amount plus any negative net worth..
6. 6Insurance. Carry the required insurance. General liability insurance and workers' compensation, with certificates emailed to the Board by the insurance agent at application and at every renewal and LSLBC named as certificate holder; there is no exemption from workers' compensation. The Board's checklist and FAQ give a $100,000 general liability minimum, while La. R.S. 37:2156.1(F)(1) says $500,000, so ask the Board on 225.765.2301 which figure applies before binding cover..
7. 7Business license. Obtain a business license. A corporation, LLC or limited partnership must be registered with the Louisiana Secretary of State with a status of Active and In Good Standing, give its charter number on the application and stay registered while licensed. The license is issued in the exact legal name; trade names are not recognized..
8. 8Background check. Complete a background check. The applicant, each principal and each qualifying party pass a background investigation covering bankruptcy, judgments, insolvency and liens, and any criminal conviction, guilty plea or plea of nolo contendere (La. R.S. 37:2156.1(C)). An unresolved child support delinquency makes a person ineligible as qualifying party until it is resolved, and an outstanding lien or judgment needs a release or a current payment plan..
9. 9Other. Each qualifying party completes the online Qualifying Party Verification in the LSLBC Contractor Portal before testing, and a business entity uploads its articles of incorporation or organization or its partnership agreement with the application..

Published fees on this path total $140, excluding exam-vendor fees, bonds, and insurance.