Contractor registration
- A CSLB license is required for jobs of $1,000 or more (labor plus materials). Smaller jobs still need a license if they require a permit or you have employees on the job.
- License classes: A (general engineering), B (general building), and C (specialty trades).
- Applicants need four years of journey-level experience and must pass the law and business exam plus a trade exam.
- Your license number must appear on advertising, contracts, and vehicles.
- Home improvement contracts have special rules, including a down payment limit of 10% or $1,000, whichever is less.
Bonding
- Every licensee must file a $25,000 contractor license bond.
- If your qualifier (RMO or RME) owns less than 10% of the business, a separate $25,000 bond of qualifying individual is required.
- LLC licensees must also carry a $100,000 LLC employee/worker bond.
- Public works contracts over $25,000 require a payment bond.
Insurance
- Workers' comp is required if you have employees.
- Concrete (C-8), HVAC (C-20), asbestos (C-22), roofing (C-39), and tree service (D-49) contractors must carry workers' comp even with no employees.
- A universal workers' comp requirement for all licensed contractors has been delayed to January 1, 2028.
- LLC licensees must carry liability insurance, starting at $1 million for LLCs with five or fewer people listed on the license.
Professional licenses
- Specialty trades need their own CSLB classification, such as C-10 electrical, C-36 plumbing, and C-20 HVAC.
- Electricians working for C-10 contractors must be certified by the Department of Industrial Relations.
- Architects and engineers are licensed by separate state boards.
- Local building permits are required for most work.
These are California state and federal requirements. Cities and counties often add their own. Requirements and fees change — confirm with the agency before you apply. This is general information, not legal or tax advice.
Other California Business Types
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