Louisiana LSLBC Business and Law Exam Guide: La. R.S. 37:2150–2165 and LAC 46:XXIX

Louisiana LSLBC Business and Law Exam at a Glance

• Questions: 50.
• Time: about 30 to 45 minutes.
• Passing score: 70 or above.
• Where: the LSLBC Contractor Portal, on your own home or office computer.
• Format: a one-hour online course, with an exam on its contents at the end.
• Fee: $150, from the board's forms revised January 30, 2026.
• Who takes it: the qualifying party. Each applicant or licensee needs at least one, with no exceptions.

The question count, time and passing score come from the LSLBC page What Happens After I Apply. The course length, the home-computer rule and the fee come from the board's Adding a Classification form. Our mock exam is a 50-question practice set. It is not a copy of the official exam, which the board treats as confidential.

How the Louisiana Exam Process Works

1. Apply. Submit the online application for a commercial, residential, mold remediation or home improvement license or registration. The LSLBC emails the applicant a New Application Notice with portal login details.
2. Qualifying party verification. Each qualifying party gets a separate email and must complete the online Qualifying Party Verification. The board warns that skipping it delays the application.
3. Fix deficiencies. The board emails any problems with the application or the qualifier, with instructions on how to resolve them.
4. Examination Approval Notice. Once the qualifier is approved, an approval notice is sent by email if a trade exam is needed or if the qualifier has not already completed Business and Law.
5. Take the course and exam. Complete Business and Law in the portal. Trade exams are scheduled separately through PSI, which emails the qualifier once the company has approved them to test.

If a qualifier has already met the testing requirements and completed Louisiana Business and Law, no new exam notice is sent.

Louisiana Business and Law Exam Cost and Fees

• Business and Law fee: $150.
• Exam research or waiver fee: $150. The board charges it when no trade exam is needed, for example because of reciprocity or an exam already passed.
• Adding a classification: $95 per classification per year, plus a $40 processing fee per classification.
• Trade exam fees: paid directly to PSI when the qualifier registers.
• Name or structure change: $100 (LSLBC FAQ).

The LSLBC FAQ confirms that an exam or administrative fee applies to each classification and to Business and Law, even if you do not have to sit an exam. If a new qualifier wants to hold Business and Law for the company, the fee is due even if that person took the course before. Fees can change, so check the current form before you pay.

Retakes, Reviews and Exam Rules (LAC 46:XXIX-111 to 117)

The board's exam rules are written for LSLBC exams in general. They do not say exactly how each one applies to the online Business and Law exam, so confirm with the board at 225-765-2301 before you plan around them.

• Retake wait: a candidate who fails cannot retake for 30 days, and may retake only once every other eligibility requirement is complete (LAC 46:XXIX-111).
• No-shows: a candidate who misses a scheduled exam forfeits the fee and must pay a new one before scheduling again.
• Exam review: available after two failed attempts at the same exam, if your last score was within ten points of passing. Request it in the portal within 60 days, and expect a 14-day wait before you can retake that exam (LAC 46:XXIX-117).
• Challenging a question: you can comment on a question you think is wrong, but only during the exam, and you must give a detailed reason (LAC 46:XXIX-115).
• Open book: the board does not say. Rule 113 bans reference material at board-approved testing locations but does not address the portal exam, so do not count on having notes.

Louisiana License Thresholds Under La. R.S. 37:2150.1

The thresholds are the most heavily tested numbers in Louisiana. Each one counts the total project value, labor plus materials, whoever supplies the materials.

• Commercial: a license is required at $50,000 or more.
• Electrical, mechanical and plumbing: a license is required at $10,000 or more. A State Plumbing Board master plumber still needs an LSLBC license for plumbing work at that level.
• Hazardous materials work: asbestos, hazardous waste, lead-based paint abatement and underground storage tanks need a license from $1.
• New residential construction: a residential license is required at $50,000 or more, or for any structural work.
• Home improvement: a registration is required for projects over $7,500 and up to $50,000.
• Mold remediation: a license is required at $7,500 or more.
• Residential swimming pool subcontractors: a license is required over $7,500.
• Construction management: over $50,000 commercial, $75,000 residential or $7,500 home improvement (R.S. 37:2161).

Requirements for a Louisiana Contractor License

From the board's licensing requirements brochure:

• Commercial license:
  • a financial statement showing $50,000 net worth, current within 12 months;
  • Business and Law;
  • any required trade exam.
• Residential license: the same requirements, plus general liability insurance of at least $100,000 and proof of workers' compensation coverage.
• Home improvement registration: $100,000 general liability insurance and workers' compensation coverage.
• Mold remediation license:
  • $25,000 net worth;
  • Business and Law;
  • 24 hours of approved training;
  • $50,000 general liability insurance and workers' compensation coverage.

The board's FAQ page gives a different general liability figure of $500,000. The statute text in our bank (37:2156.1) and the brochure give $100,000, so confirm the current amount with the board before you buy a policy.

Key Louisiana Contractor Law Rules to Know

• Qualifying parties: a qualifying party is a natural person who holds the exam scores for the company. When one leaves, notify the board in writing within 30 days and replace them within 60 days (37:2156.1).
• Who may qualify: an owner, partner, member, officer or full-time employee. The FAQ cites the IRS definition of 30 hours a week, but rule XXIX-109 says at least 32 hours a week for employee qualifiers.
• No temporary license: you must hold the license before you bid, contract or start work.
• No DBAs: you must bid and contract in the name on the license.
• Licenses cannot be transferred between people or companies.
• Joint ventures must be licensed themselves at the time of bid (37:2162).
• Owner-builders: an owner may build a primary residence they will live in without a license, but not a house to rent or sell.
• Contracts: must be in writing and signed before work begins. An unlicensed contractor cannot file a lien (37:2159).
• Penalties: fines of up to $500 per day for contracting without a license. When the harm exceeds $300, the penalty is a fine of $500 to $5,000 and up to five years in prison (37:2163).
• Changes: report changes to your business information within 30 days (LAC 46:XXIX-107).
• Renewal: the first license lasts one year. After that you can renew for one, two or three years. Residential building contractors need 6 hours of continuing education a year and must keep the certificates for five years.

How Louisiana Differs From Other States

Many states give their business and law exam at a PSI or Prometric test center. Alabama, for example, gives an open-book exam at PSI. Louisiana's Business and Law is a short course and a 50-question exam that you take at home through the board's portal, and the board publishes no pass rate. Louisiana also recognises NASCLA: the NASCLA Building exam can count toward the Building Construction and Residential Construction trade exams, but it does not replace Business and Law. Military members, their spouses and dependents can get a license through endorsement, but they still have to complete Business and Law.

Louisiana Business and Law Study Plan (One Week)

1. Days 1–2: read 37:2150.1 and the brochure. Make flash cards of every threshold: $50,000, $10,000, $7,500, $75,000 and $1.
2. Day 3: qualifying parties, net worth and insurance (37:2156.1, 2157).
3. Day 4: exemptions, violations and penalties (37:2158, 2160, 2163).
4. Day 5: contracts, joint ventures, construction management and permits (37:2159, 2161, 2162, 2165).
5. Day 6: take our full practice test and reread every section you miss.
6. Day 7: sit a timed mock and aim to finish in 45 minutes. Then work through the board's online course carefully, because the exam is based on its contents.

Common Mistakes on the Louisiana Exam

• Mixing up "$7,500 or more" for mold with "more than $7,500" for home improvement.
• Forgetting that thresholds count labor and materials together.
• Assuming a city occupational license or Secretary of State registration lets you contract. Neither does.
• Assuming a commercial license lets you build a single new home. It does not.
• Bidding before the license is issued.
• Skipping the course material because the exam is short.

What Our Louisiana Practice Test Covers

We have 152 original scenario questions on La. R.S. 37:2150 to 2165, covering definitions and thresholds, licensing and the board, exemptions, violations and discipline, and contracts, permits, bids and penalties. Each answer cites its section and quotes the statute. The bank does not cover every board rule in LAC 46:XXIX, or the business topics in the NASCLA Louisiana Contractors edition such as tax and payroll, so study those from the board's course. Source: Louisiana Revised Statutes Title 37, Chapter 24.

Start the Louisiana practice test.

Frequently Asked Questions

How many questions are on the Louisiana Business and Law exam?

50 questions. The LSLBC says the exam takes about 30 to 45 minutes to complete.

What is the passing score?

You must score 70 or above, according to the LSLBC.

Is the Louisiana Business and Law exam given by PSI?

No. Since August 5, 2025, PSI gives the Louisiana trade exams, but Business and Law stays in the LSLBC Contractor Portal. The qualifying party takes a one-hour online course there and then the exam, on a home or office computer.

How much does the Business and Law exam cost?

The LSLBC forms revised January 30, 2026 list a Business and Law fee of $150. Trade exam fees are paid separately to PSI. If no trade exam is needed, for example through reciprocity, the board charges a $150 exam research or waiver fee.

Is it open book?

The board does not say. Its exam rule (LAC 46:XXIX-113) bans reference material in the testing room at board-approved test sites, but it does not address the online portal exam. Follow the instructions the portal shows and do not assume notes are allowed.

Can I retake the exam if I fail?

Under LAC 46:XXIX-111, a candidate who fails an exam must wait 30 days before retaking it. The rule is written for board exams in general, so confirm with the board how it applies to the online Business and Law exam.

Can I review a failed exam?

Yes, after two failed attempts at the same exam, if your last score was within ten points of passing. You request the review in the portal within 60 days of the failed exam, and you cannot retake that exam for 14 days afterward (LAC 46:XXIX-117).

Who has to take it?

The qualifying party. Every applicant or licensee must have at least one qualifying party for Business and Law, with no exceptions. That includes the labor-only specialty, which has no trade exam.

Do I need to retake it to add a classification?

Not if the license already has an active qualifying party for Business and Law. If a new qualifier wants to hold Business and Law for the company, the fee applies even if that person took the course before.

How is Louisiana different from other states?

The exam is short and online, not at a test center. Louisiana also has unusual thresholds: $50,000 for commercial work, $10,000 for electrical, mechanical and plumbing, $7,500 for home improvement and mold, and $1 for hazardous materials work. There is no temporary license.

Sources: LSLBC application and FAQ pages, the LSLBC forms revised January 30, 2026, the LSLBC licensing brochure, La. R.S. 37:2150–2165 and LAC 46:XXIX. Facts were checked October 30, 2026 (PKT). Always confirm current details with the LSLBC.