Quick answer
Report unlicensed contractors to your state licensing board, Attorney General, and BBB. Unlicensed contractors void warranties, homeowners insurance, and building permits.
How to Report an Unlicensed Contractor: Protect Yourself from Fraud
Quick answer: Report an unlicensed contractor to your state’s contractor licensing board, which can investigate and impose fines or criminal referrals. Also notify your state attorney general’s consumer protection office and your local building department. Verify any contractor’s license before hiring through your state board’s online lookup.
Hiring an unlicensed contractor — or discovering one is working without a license — exposes you to shoddy work, no insurance coverage, and little recourse. Unlicensed contracting is illegal in most states. This guide shows how to verify a license and report violations.
Why Unlicensed Contracting Is a Problem
Licensed contractors must meet competency, bonding, and insurance requirements. An unlicensed contractor often carries no liability insurance or workers’ compensation, leaving you exposed if someone is injured or the work causes damage. You also lose access to state recovery funds and bond claims that protect consumers when work goes wrong.
In most states, contracting without a required license is illegal — sometimes a misdemeanor or felony depending on the dollar amount — and licensing boards actively pursue violators.
Where to Report and How to Verify
Report to your state contractor licensing board, which handles unlicensed-activity complaints and can fine or refer violators for prosecution. Your state attorney general’s consumer protection division and your local building department (which issues permits) are also appropriate. Before hiring anyone, verify their license number on your state board’s website — most offer a free online lookup.
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Get Your Free Checklist →Where to Report an Unlicensed Contractor
| Situation | Agency | Contact |
|---|---|---|
| Unlicensed contracting | State contractor licensing board | Search “[your state] contractor license lookup” |
| Deceptive or unfair practices | State attorney general | Consumer protection division |
| Work without permits | Local building department | City/county building dept |
| Verify a license before hiring | State licensing board lookup | State board website |
| Money lost / damages | Small claims court | County court self-help center |
How to Report an Unlicensed Contractor Step by Step
- Verify the license status. Search your state board’s online license lookup using the contractor’s name or license number to confirm they’re unlicensed or expired.
- Gather documentation. Save the contract or estimate, advertisements, business cards, payment records, texts, and photos of the work. Note the dates and the dollar amount involved.
- File with the state licensing board. Use the board’s unlicensed-activity complaint form and attach your evidence. The board can investigate, fine, and refer for prosecution.
- Notify the attorney general. File a consumer-protection complaint, especially if the contractor misrepresented being licensed.
- Tell your local building department. If the work required permits that weren’t pulled, the building department can issue stop-work orders and penalties.
- Recover your money. For losses within the limit, file in small claims court. Note that unlicensed contractors often can’t legally enforce payment and may owe refunds in some states.
- Document any safety issues. If unpermitted or substandard work created hazards, request an inspection and keep the report.
- Keep records and follow up. Save your complaint confirmations and reference numbers, and follow up with the board if you don’t hear back.
Frequently Asked Questions
How do I check if a contractor is licensed?
Use your state contractor licensing board’s online lookup. Search by name or license number to confirm the license is active and covers the type and value of work you need.
Is hiring an unlicensed contractor illegal?
Hiring one usually isn’t illegal for you, but contracting without a required license is illegal for the contractor in most states. You do, however, lose key protections like insurance coverage and bond/recovery-fund claims.
Where do I report an unlicensed contractor?
Start with your state contractor licensing board’s unlicensed-activity complaint process, then notify your state attorney general and local building department. Each can take different enforcement action.
Can I get my money back from an unlicensed contractor?
Sometimes. In several states, unlicensed contractors can’t legally collect payment and may have to refund you. File in small claims court for losses within the limit and keep all documentation.
What’s the risk if they get hurt on my property?
Without the contractor’s workers’ compensation and liability insurance, you could be held financially responsible for injuries or damage. This is one of the biggest reasons to verify a license before hiring.
For related guides see: How to Report a Bad Contractor, How to Complain About a Car Repair Shop, How to Report False Advertising.
Independent resource — not affiliated with any U.S. government agency. Last reviewed: June 2026.
Need the right agency in your state?
Rules and complaint offices vary by state. Use our state lookup to find the correct reporting agency, phone number, and complaint portal.
Find reporting agencies by state →What happens next
- Most agencies send an acknowledgment or reference number — save it with your copies.
- Investigations vary by agency; complex cases can take weeks or months.
- If you do not hear back within the timeframe listed on the agency site, follow up in writing.
- Keep reporting to additional agencies if your issue crosses categories (for example, fraud plus billing).