What is the minimum net worth requirement for a Louisiana Class A General Contractor license?
Correct Answer
B) $75,000
Louisiana R.S. 37:2150 requires Class A General Contractors to maintain a minimum net worth of $75,000.
Why This Is the Correct Answer
Louisiana R.S. 37:2150 sets the minimum net worth for a Class A General Contractor license at $75,000. This financial threshold ensures that Class A licensees have sufficient capital to manage larger commercial projects.
Why the Other Options Are Wrong
Option A: $25,000
$25,000 is too low for a Class A license. This figure may correspond to lower-tier classifications or subcontractor requirements, not the Class A threshold.
Option C: $50,000
$50,000 falls below the Class A requirement. It is a common distractor because it falls midway between the low ($25,000) and correct ($75,000) values, appearing plausible.
Option D: $100,000
$100,000 exceeds the Class A minimum net worth requirement. This may be confused with bonding amounts, project value thresholds, or Class A+ / higher classification requirements.
Memory Technique
Class A = $75K net worth. Remember 'A for Ample — $75,000 is the ample baseline.' It is three-quarters of $100,000, so think '75% of a hundred grand for your Class A standing.'
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