Short answer: Ask the company for its license number, then look it up on your state's official licensing website. Make sure the name matches, the license is active, and it covers the kind of work you're hiring for. Also ask for proof of liability insurance, since a license and insurance are not the same thing.

Licensing rules are set by each state, and they differ a lot by trade. Here's a quick guide for four states where we feature local pros.

Florida

Florida licenses many construction trades at the state level through the Department of Business and Professional Regulation (DBPR), including:

  • Air conditioning contractors
  • Plumbing contractors
  • Electrical contractors
  • Roofing contractors
  • General, building and residential contractors

Florida contractors often list their license number on their website and trucks. For example, roofing licenses commonly start with "CCC" and air conditioning licenses with "CAC." Some trades and smaller jobs are handled by county or city licensing instead, so check with your local building department if you can't find a state license.

Texas

Texas splits licensing across different agencies:

  • HVAC (air conditioning and refrigeration) and electricians are licensed by the Texas Department of Licensing and Regulation (TDLR).
  • Plumbers are licensed by the Texas State Board of Plumbing Examiners.
  • Roofers are not licensed at the state level in Texas. That makes it especially important to check local registration, insurance, reviews and how long the company has been in your area.

Arizona

Arizona licenses contractors across most trades through the Arizona Registrar of Contractors (ROC). Licensed companies have an ROC number, and the ROC's website lets you look up a contractor's license status. Arizona contractors are generally expected to display their ROC number in advertising, so you'll often find it on their website.

North Carolina

North Carolina uses separate boards by trade:

  • General contractors need a license from the NC Licensing Board for General Contractors for projects of $40,000 or more.
  • Electricians are licensed by the NC State Board of Examiners of Electrical Contractors.
  • Plumbing and HVAC (heating and fire sprinkler) contractors are licensed by the NC State Board of Examiners of Plumbing, Heating and Fire Sprinkler Contractors.

What else to check besides the license

  • Insurance: ask for a certificate of liability insurance, and workers' compensation if they have employees.
  • Permits: ask who pulls the permit. Licensed contractors normally pull permits for work that requires one.
  • A written estimate that spells out the scope, materials, price and warranty.
  • Local roots: a real local address and a track record in your area.

Frequently asked questions

Is a business license the same as a contractor's license?

No. A local business license (or tax registration) lets a company operate in a city or county. A contractor or trade license shows the company met the state or local requirements to do that specific kind of work.

Do lawn care companies need a license?

Mowing usually doesn't, but applying fertilizer, weed control or pest treatments often requires a pesticide applicator license in many states. Ask the company if they apply any of these.

What if the license is expired?

Ask the company about it before you hire them. If they can't give a clear answer, find another contractor.

Licensing rules change. Always confirm the current requirements with your state agency or local building department.

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