Run these seven checks before you sign anything or hand over a deposit. Each one takes five minutes and can be done from your phone right now.
1. Find your state's license board. Search "[your state] contractor license board" and confirm you land on a .gov site — not a lead-generation site that looks official. In California it's the CSLB; in Florida, the DBPR; in Texas, licensing runs through the TDLR or individual trade boards. Bookmark the real one.
2. Enter the contractor's exact license number. Ask the contractor for it in writing before you look — don't just search their business name. A legitimate contractor gives you the number without hesitation. If they dodge, stall, or say "I'll get it to you later," stop there.
Confirm the license is active and matches
3. Check the status field. It must read "Active" or "Current" — not "Expired," "Suspended," "Inactive," or "Revoked." An expired license means they're working illegally today.
4. Match the name on the license to the name on your contract. The license should belong to the person or business you're actually hiring. A common scam: a salesperson uses a licensed contractor's number while the unlicensed crew does the work. If the names don't match, ask why in writing.
5. Verify the classification covers your job. A license for general building doesn't automatically cover electrical, roofing, or plumbing. Confirm their classification matches the work you need done — the board site lists what each license authorizes.
The number of homeowners who never once type the license number into the state site is staggering. That single search would have prevented most of the fraud complaints we see.— State contractor board investigator
Pull the discipline and complaint history
6. Open the disciplinary actions tab. Most boards publish citations, suspensions, and accusations directly on the license record. Read every entry. One old, resolved paperwork issue is normal. A pattern of abandoned jobs, workmanship complaints, or unpaid judgments is not.
7. Confirm bond and insurance. The record should show an active surety bond and, in most states, workers' comp and liability coverage. Request current certificates directly from the contractor and confirm the policy numbers with the issuing carrier — not just a PDF the contractor emails you. A forged certificate is trivial to make; a phone call to the insurer is not.
Documents to request today
Before money changes hands, ask for these in writing:
- The license number and a screenshot of the active status page - Current certificates of insurance and bond, with carrier contact info - A written contract listing the license number, total price, payment schedule, and start and completion dates - References from jobs completed in the last twelve months
A contractor who supplies all four quickly is showing you how they'll behave for the rest of the project.
The one red flag that shows up in almost every bad hire
They ask for a large cash deposit up front — often 40% or more — before any materials are ordered or any permit is pulled. Legitimate contractors work off a schedule tied to milestones, not a big lump sum handed over on day one. The moment someone pressures you for a heavy cash deposit "to lock in the price" or "to buy materials today," treat it as a warning, not a discount.
The cleanest way to protect that deposit is to never let it sit in a contractor's account before the work is done. When your payment is held in escrow and released as milestones are actually completed, the pressure to pay everything up front disappears — and so does most of the risk.