To become a licensed contractor in California, you must be 18 years of age or older and have the experience and skills necessary to manage a construction business’s day-to-day operations, which includes field supervision. Alternatively, you may be represented by somebody else who meets these requirements and will act as your Qualifying Individual (QI). Licenses for electricians and plumbers have their own requirements and application processes. The experience must cover four full years at the journey level or as a foreman, supervisor, or contractor for the classification the applicant is seeking. This experience must fit within ten years of applying, and it must be verifiable.
In addition to those basic requirements, general contractors with employees must receive the applicable bond insurance and licensure for the type of contracting work they are performing. The cost of a bond may also differ according to your business entity designation. Contracting managers may also need to purchase general liability insurance. Further details will be provided below.
Who Needs a Contractors License?
According to the California Department of Consumer Affairs Contractors State License Board (CSLB) page, businesses and individuals who construct or alter any building, highway, road, parking facility, railroad, excavation, or other structure in California must be licensed to perform work. This only applies if the total cost (labor and materials) of one or more contracts on the project exceeds $500.
Those who violate California law by contracting without a license face steep fines. First time offenses for contracting without a license are usually a misdemeanor, carrying a potential sentence of up to six months in jail and/or a $500 fine, along with a potential administrative fine ranging from $200 to $15,000. However, subsequent violations can be harsh, with penalties ranging from a fine of 20 percent of the contract price of the work performed to a $4,500 fine, and a mandatory 90-day jail sentence for the unlicensed contractor.
California General Contractor License Requirements
To become a general contractor in California, you must meet multiple requirements set forth by the CSLB, including education. These requirements include:
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- Completed examination application and $330 fee
- California business license and Tax ID (if LLC or Corporation)
- Fingerprinting Live Scan
- Completion of “Law and Business” exam
- Completion of secondary trade-related exam
- Completion of the asbestos open-book examination
- Initial licensing fee of $200
- Contractor bond or cash deposit of $15,000
- Bond of QI (if applicable) of $12,500
- Certificate of Workers’ Compensation Insurance or Certification of Self-Insurance of Workers’ Compensation from the Department of Industrial Relations
- LLC Employee/Worker Bond (if applicable)
- LLC liability insurance (if applicable)
Licensing and Registration Fee Summary
The following fees should be expected and prepared for:
- Examination Application Fee — $330.00
- Initial License Fee (Valid 2 Years) — $200.00
- Live Scan Operator Fingerprint Processing Fee — $49.00
- Exam Rescheduling Fee (if applicable) — $60.00
- Additional Live Scan Rolling Fee (if applicable) — TBD
Total fees (without rescheduling or rolling free, not including workers comp or bonds)
- Total Fees — $579.00
California Contractors License Application
A California contractor’s license may be obtained by first completing and submitting an application for examination. There are currently three ways to complete this form:
- Easy-Fill: Fill out the form online, then print and mail it to CSLB with the $330 fee.
- PDF: Print a blank form, then fill it out and mail it to CSLB with the $330 fee.
- Order: Receive a blank form by mail, then fill it out and mail it to CSLB with the $330 fee.
It’s important to note that you’ll have to submit your fingerprints for comparison by the California Department of Justice and the Federal Bureau of Investigation to complete this application. If you have ever been convicted of a crime, including DUI or other Vehicle Code violations, the CSLB will be informed. This does not mean you’ll automatically be denied licensure — each application is reviewed individually, and the CSLB considers factors such as the nature and severity of the crimes, the amount of time that has passed since the convictions, and any evidence of rehabilitation submitted by the applicant.
On the application, you’ll need to provide:
- Full New Business Name. Your business name must not be misleading, meaning you couldn’t name your company ABC Tile if you’re applying for a C-10 Electrical contractor license. If your business is a corporation or limited liability company (LLC), the business name shown on your application must match exactly the business name as registered with the Secretary of State (SOS).
- Business Address. You’ll need to provide a public mailing address as well as a street address, the latter of which will not be published. You’ll also be asked to provide a business phone and fax number, and email address.
- Type of Classification Requested. Only one classification may be requested at a time. General Engineering contractors will request an “A” classification while General Building contractors will request “B”. All others should refer to this page for further instruction.
- Business Entity Designation. Select which of these four business entities fits you best:
- Sole Ownership
- Partnership — provide current and active Federal Employer ID#
- California Corporation — provide current and active California Secretary of State Corporation registration #
- Limited Liability Company — provide current and active California Secretary of State registration #. LLCs have additional requirements when applying for LLC licenses:
- $100,000 Surety bond. In addition to the $15,000 contractors bond, LLC licensees must file a $100,000 surety bond.
- $1 Million Liability Insurance Minimum. LLC licenses are required to carry liability insurance with the aggregate limit of $1 million for licensees with five or fewer persons and/or companies listed as personnel of record, plus an additional $100,000 required for each additional personnel, not to exceed $5 million total.
- Personnel of Record. Every person and/or company that is an officer, responsible manager, member, or director of an LLC must be listed as personnel of record on LLC applications.
- Information for Qualifying Individual (QI)
- Full name. If QI has no legal middle name, write “none” or “no middle name” instead of leaving it blank.
- Date of Birth
- Social Security Number
- Resident Street Address. PO boxes are not acceptable.
- QI Existing/Previous CSLB License Number(s). If none, enter “N/A”.
- Percentage of New Business Owned By QI
- Driver’s License Number
- Phone Number
- Title or Position. Check the appropriate box that identifies the title/position of the qualifying individual. The title/position must be compatible with the business entity type, as entered in Section 2 above. Please be sure your selected title/position complies with the following:
- Sole ownership entity — either Owner or Responsible Managing Employee (RME)
- An RME is a bona fide employee who is permanently employed by the applicant and is actively engaged in the operation of the applicant’s contracting business for at least 32 hours or 80% of the total hours per week such business is in operation, whichever is less.
- Partnership entity — either Qualifying Partner or RME
- Corporation entity — either Responsible Managing Officer (RMO) or RME. California corporations must identify three corporate officers (president, secretary, and treasurer).
- LLC entity — any one of RMO, Responsible Managing Manager, Responsible Managing Member, or RME. If an LLC has officers, the name(s) of their officer(s) must be listed on the application – president, secretary, and treasurer.
- Sole ownership entity — either Owner or Responsible Managing Employee (RME)
- Printed name and signature affirming the veracity of information submitted
- Personnel Information
- Full legal names
- DOB
- SSN
- Residence Address
- Driver’s License #
- Title or Position
- Owner
- General Partner
- Limited Partner
- Member
- Manager
- Officer – provide title
- Residence Phone Number
- Printed name and signature affirming the veracity of information submitted.
- Required “Yes” or “No” Application Questions
- To the best of your knowledge, is anyone listed on this application (or any company the person is or was a part of) named in or responsible for any unsatisfied final judgments, liens, and/or claims against any bond or cash deposit pertaining to a construction project?
- If “yes” you are required to attach a statement identifying all judgments (pending or on record), liens, past due unpaid bills, claims, or suits and a detailed explanation of the situation. Include the names and addresses of the parties involved. If the obligation was or is being discharged in bankruptcy, attach a copy of the bankruptcy filing and a copy of the creditor’s list.
- Has anyone listed on this application EVER been convicted of or entered a plea of guilty or nolo contendere to ANY misdemeanor or felony in the United States or a foreign country?
- If “yes” attach a statement disclosing all pleas/convictions, including violated law sections, and thoroughly explain the acts or circumstances that resulted in the plea/conviction. In addition, the following information must be included for each plea/conviction:
- Date of the plea/conviction
- Level of the plea/conviction (i.e., misdemeanor or felony)
- County and state where the violation took place
- Name of the court
- Court case number
- Sentence imposed
- Jail/prison term served
- Terms and conditions of parole or probation
- Parole or probation completion dates
- Parole agent/probation officer names and phone numbers
- If “yes” attach a statement disclosing all pleas/convictions, including violated law sections, and thoroughly explain the acts or circumstances that resulted in the plea/conviction. In addition, the following information must be included for each plea/conviction:
- To the best of your knowledge, has anyone on this application (or any company the person is or was a part of) ever received a citation from CSLB or had a contractor license or other professional or vocational license or registration denied, suspended, revoked, or otherwise disciplined by this state or elsewhere (i.e., other U.S. state, U.S. territory, agency of the federal government, or another country)?
- If “yes” you are required to attach a statement detailing the events leading to this action.
- To the best of your knowledge, has anyone on this application failed to resolve any outstanding final liabilities, which include taxes, additions to tax, penalties, interest, and any fees that may be assessed by CSLB, the Department of Industrial Relations, the Employment Development Department, the Franchise Tax Board, or the State Board of Equalization (BOE)?
- If “yes” you must attach a statement regarding the outstanding liabilities.
- (This question must be answered only if the qualifying individual is a responsible managing employee [RME].) Title 16, California Code of Regulations (T16 CCR) section 823 states that an RME must be permanently employed by the applicant and actively engaged in the operation of the business for at least 32 hours per week or 80% of the total hours per week that the business is in operation. Will you, as the responsible managing employee, meet the requirement of T16 CCR section 823 cited above?
- Will you require the use of a CSLB-approved translator for the examinations, which are administered in English?
- To the best of your knowledge, is anyone listed on this application (or any company the person is or was a part of) named in or responsible for any unsatisfied final judgments, liens, and/or claims against any bond or cash deposit pertaining to a construction project?
- “Yes” or “No” Qualifier Education, Apprenticeship, Licensure, and Military Questions
- Have you completed an educational or apprenticeship program?
- If “Yes” you may be granted credit for completing training in an accredited school or apprenticeship program.
- For education, submit transcripts for a four-year degree (or less), technical training (including course hours and descriptions), or any other degrees in a business or construction-related field, in a sealed envelope sent and received directly from the educational institution.
- For apprenticeships, submit a copy of your apprenticeship certificate and enter the beginning and ending dates of the completed apprenticeship program.
- If “Yes” you may be granted credit for completing training in an accredited school or apprenticeship program.
- Are you licensed in another state in the same classification for which you are seeking licensure?
- If “Yes” you must provide a Request for Verification of License form that is completed by the licensing agency from the other state (Arizona, Nevada, or Utah only, depending on the classification).
- Are you serving in, or have you previously served in the United States military?
- If “Yes” please provide Evidence of your current military duty (copy of your military orders) or your previous military service (copy of your DD 214 – Certificate of Release or Discharge from Active Duty).
- (This question must be answered only if the applicant is an individual applying for a sole ownership business entity license) Are you married to, or in a domestic partnership or other legal union with, an active duty member of the Armed Forces of the United States who is assigned to a duty station in California under official active duty military orders AND do you hold a current license in another state, district, or territory of the United States as a contractor in the same classification for which you are seeking licensure?
- If “Yes” please provide:
- Evidence of your legal union and your spouse’s or partner’s military duty. For example, attach a copy of the marriage certificate or certified declaration/registration of domestic partnership filed with the Secretary of State AND military orders establishing a duty station in California. For other forms of “legal union” not recognized by California, you may submit other documentary evidence of legal union issued by the state that recognizes your legal union for consideration by CSLB in meeting this requirement
- Copy of your current license from the other state, district, or territory of the United States documenting a contractor license, registration, permit, or certificate in the same classification for which you are seeking licensure.
- If “Yes” please provide:
- Have you completed an educational or apprenticeship program?
- Certification of Work Experience
- Qualifying Individual Information. The QI must complete this part before the certifier certifies it.
- QI Full Legal Name
- Business name and license # of company where experience was gained
- Company’s business street address.
- “Yes” or “No” answer to “Was the experience obtained working on your own property as an “owner-builder”?
- If “Yes” you will use an additional form to verify experience.
- Work Experience and Certification Statement.
- Indicate Journeyman-Level or Higher Experience
- List all specific trade duties performed or supervised in classification for which you are applying
- Indicate Certifier’s business relationship to QI
- Employer
- Journeyman
- Contractor (provide License Number)
- Fellow Employee
- Union Representative
- Foreman or Supervisor
- Business Associate
- Certifier’s street address (No PO Boxes)
- Certifier’s Phone #, Fax #, and email address
- Printed name and signature affirming veracity of information submitted
- Qualifying Individual Information. The QI must complete this part before the certifier certifies it.
Lastly, you’ll want to make sure that you have filled out everything accurately. Nearly half of all applications submitted to CSLB are inaccurate or incomplete and must be returned to the applicant for correction or completion.
After you’ve completed the application, enclose the nonrefundable $330.00 application fee and all required documents, and send them to
CSLB Headquarters
Contractors State License Board
P.O. Box 26000
Sacramento, CA 95826-0026
Do not submit bonds or initial license fee with application. You will be instructed to submit the required documents and initial license fee after completing the exam.
After your exam application has been accepted, you will receive a Fingerprinting Live Scan packet, as well as a Notice to Appear for Examination. You should receive your exam notice at least three weeks prior to the examination date.
California Contractors License Exam
Those who submit applications and receive an exam notice are ready to head to a testing site and take the test. CSLB staff will then use your zip code to assign you a testing center to take the exam at. Examination sites are located in:
- San Diego
- San Bernardino
- Norwalk
- Oxnard
- Oakland
- Sacramento
- San Jose
- Fresno
Once you receive your Notice to Appear for Examination, take note of the testing center you’ve been assigned, the date and time of the exam, and what identification is required. The CSLB provides this information concerning admittance to the exam site:
- In order to be admitted to the test center, bring your Notice to Appear for Examination.
- You must also bring picture identification (a current valid driver’s license, Department of Motor Vehicles identification card, or military identification card).
- Pencils, scratch paper, calculators and scale rulers will be provided at the test center.
- No personal calculators, cell phones, pagers or other electronic devices are permitted in the testing area.
- All personal items must be placed in a common storage area at your own risk. You are advised to leave articles of value locked in your vehicle since the test center staff does not watch the storage area.
The test itself is taken on an easy-to-use computer-assisted testing (CAT) system, and translators are available by approved, advanced request. You will be given three and a half hours to complete the examination, and test-takers receive their score results before leaving the test site.
The exam itself has two parts. All QI must pass the standard “Law and Business examination” as well as a second test covering the specific trade or certification they are applying for. According to the CSLB study guide, the Law and Business exam is split into eight different sections:
- Business Organization (10%)
- Company organization
- Project organization
- Business Finances (15%)
- Cash management
- Budget and planning
- Taxes
- Financial reporting
- Employment Requirements (12%)
- Employment regulations
- Evaluation and record-keeping
- Payroll
- Bonds, Insurance, and Liens (10%)
- Bonds
- Workers’ compensation insurance
- Liens and other remedies
- Other insurance
- Contract Requirements and Execution (23%)
- Bidding
- Cost control
- Contracts Payments
- Licensing Requirements (8%)
- Business license
- Contractor’s license
- Activity regulation
- Safety (15%)
- Training and reporting requirements
- General safety
- Hazardous/unknown materials
- Public Works (7%)
- Prevailing wage requirements
- Bonding requirements
- Insurance requirements
Sample questions and resources are provided on the Law and Business study guide. For additional exam study guides, visit the “General Engineering” or “General Building” study guides on the CSLB page.
If you fail the examination or fail to appear for an examination, you must pay a $60.00 rescheduling fee. You have 18 to pass the examination after your application is accepted by the board.
Upon passing the examination, you’ll be given a bond and fee notification from the testing site. The following requirements may be included:
- An initial licensing fee of $200
- Contractor bond or cash deposit of $15,000
- Bond of Qualifying Individual (if applicable) of $12,500
- Completed asbestos open-book examination
- Certificate of Workers’ Compensation Insurance or Certification of Self-Insurance of Workers’ Compensation from the Department of Industrial Relations
- Exemption from workers’ compensation, if no employees
- Fingerprinting requirements
- LLC Employee/Worker Bond (if applicable)
- LLC liability insurance (if applicable)
Approximately one week after your license is issued, you should receive your wall certificate and pocket card. The law requires that you display your wall certificate in your main office or chief place of business. You also should make it a habit to carry your pocket card, especially in situations where you think you might be soliciting business or talking to potential customers.
California Contractor Registration and Permitting Requirements
California has a variety of planning, zoning, and construction permits that need to be obtained based on wherever the proposed construction is going to take place. These requirements vary from institution to institution, including OSHA permitting and environmental permits, as well as permits that are required to be obtained at the local level.
Use the Governor’s Office of Business and Economic Development CalGold tool to find the appropriate permit information for your business.
California State Business Licenses and Registration
California Business Registration
All new LLCs and Corporations in California must register their business name with the Secretary of State’s office. More information on starting a business in California can be found here.
California Tax Identification Numbers and Registration
The Internal Revenue Service issues employer federal identification numbers and administers federal payroll and income taxes, including social security, Medicare, federal unemployment insurance and federal income tax withholding. Check out the Employer ID Numbers (EINs) webpage for specific information on applying for an EIN.
You can find more information on taxes in California by visiting the Secretary of State’s Tax Information Page.
California Workers’ Compensation Insurance Requirements and Forms
California law requires all employers to secure workers’ compensation insurance, even if they only have one employee. More information can be found on the Department of Industrial Relations Division of Workers’ Compensation page.
California State Contractor License Search and Verification
You can look up qualified contractors in California by license number and name via the CSLB Check-a-License tool.
See general contractor licensing information in nearby states
- Nevada contractors license
- Arizona contractors license
- Oregon contractors license
- Hawaii contractors license
For More License and Career Guides
To find out how to become a General Contractor in another state, start here.
For information on other trades in California, click on a link below to learn more about the licensing requirements: