How to check if a contractor is legit
Nine checks you can run in about fifteen minutes, before you sign anything or hand over a deposit.
Updated Oct 12, 2026 · Vettley
Most contractors are honest people doing good work. The problem is that the few who aren't look the same on the phone. A short, repeatable checklist protects you from the bad ones and makes the good ones easy to spot. Here are nine checks, roughly in the order you'd run them.
1. Look at their public signals
Before you call, look at how the business shows up online. Does the website load? Is it secure (the address starts with https and shows a lock)? Is there a real street address and a working phone number? How long has the website been around? None of these prove good work, but missing basics are worth noticing. You can check a business on Vettley to see these signals, with the date we checked them.
2. Confirm the business is registered
Every state has a business registry, usually run by the Secretary of State. Search the company name and confirm it is listed as active. Note the official name; it should match the name on your estimate and contract.
3. Verify the license, where your state requires one
Licensing rules vary by state, city and trade. Electricians and plumbers are licensed in most places; general contractors and roofers depend on where you live. Ask for the license number and look it up on the state or city licensing site yourself, rather than relying on a photo of a card.
4. Ask for a certificate of insurance
Ask for proof of general liability insurance and, if they have employees, workers' compensation. The best practice is to have their insurance agent send the certificate to you directly. If a worker is hurt on your property and the contractor is uninsured, you could end up dealing with the claim.
5. Get at least three written estimates
Written estimates let you compare the same scope side by side: materials, labor, cleanup, permits and timeline. A price far below the others is not always a bargain; it often means something is missing from the scope.
6. Ask who pulls the permits
For work that needs a permit, the contractor should pull it in their own name. A contractor who asks you to pull the permit as the homeowner is shifting responsibility to you.
7. Be careful with large deposits
A reasonable deposit is normal, especially for custom materials. Be wary of anyone who wants most of the money up front. Some states cap deposits on home improvement jobs; California, for example, limits most down payments to 10% of the contract price or $1,000, whichever is less. Tie later payments to finished milestones, and pay by check or card so there is a record.
8. Read the contract before you sign
A good contract lists the scope, materials, price, payment schedule, start and finish dates, warranty and how changes are handled. If a contractor sells to you at your home, the FTC's Cooling-Off Rule generally gives you three business days to cancel many sales of $25 or more, and many states have their own rules too.
9. Watch for pressure
"This price is only good today," door-to-door offers right after a storm, cash-only deals and leftover materials "from a job down the street" are classic pressure tactics. A good contractor is happy to give you time to decide.
The short version
- Check the public signals and the state registry.
- Verify license and insurance yourself.
- Compare written estimates and read the contract.
- Keep deposits reasonable and payments tied to progress.
Every Vettley report ends with trade-specific questions to ask. Browse reports by state or by trade to get started.
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