Find out what licenses are necessary for contractors in your state. All states require contractors to have some form of license to conduct their work. This is especially true with contractors that do remodeling work. You can check at your local building inspector's office for a list of necessary licenses. Do not hire a contractor that doesn't have these licenses.

Find a contractor that is willing to work with you on custom designs for your basement. Some basement remodeling jobs are more difficult and time consuming than others. You want to make sure that your contractor has the ability to work with you on unique remodeling ideas.

It is very important that you make sure your contractor is insured. When your contractor is insured, you are protected against any financial eventuality. Even highly skilled contractors can make mistakes from time to time. If he or she is insured, you will not have to worry about being stuck with extra costs.

Always write up a basic contract with any contractor you hire to do remodeling work. The contract will serve as a no-nonsense, clear definition of the work you are willing to pay for.