Licensed vs unlicensed contractors
The difference is not a piece of paper. It is recourse, and it matters most in the year after the job is finished.
Recourse
A licensed contractor is bonded and can be complained about to a state board that can suspend the license. That leverage is what gets a bad job corrected. With an unlicensed contractor you are suing an individual, and collecting is the hard part.
Permits and inspection
Unlicensed work often skips permits, because pulling one requires a license in most jurisdictions. Unpermitted work becomes your problem at resale and can complicate an insurance claim.
Insurance and injury
An unlicensed contractor frequently has no workers compensation. If a helper is hurt on your roof, the claim can land on your homeowner policy.
The price difference is real but small
Expect ten to twenty percent. That is the cost of the bond, the insurance and the permit. It is cheap next to a rebuild done twice.
Frequently asked questions
Is unlicensed always cheaper?
The bid is lower. The total often is not once permits and corrections are counted.
Can an unlicensed contractor pull a permit?
Usually not in their own name. Some jurisdictions allow the homeowner to pull it, which shifts the risk to you.
How do I check a license?
The state licensing board website. Search the number and the business name.
What if the work is small?
Handyman thresholds vary by state. Cosmetic work is often exempt. Structural, electrical and gas rarely are.