Obtaining a California general contractor license requires qualifying experience, CSLB examinations, an approved application, and a $25,000 contractor bond. This guide explains the complete California licensing process, including the $1,000 unlicensed-work limit, Class B requirements, fees, insurance, and license issuance.
California generally requires a contractor license when a person or business constructs, alters, repairs, improves, moves, wrecks, or demolishes a building, roadway, excavation, or other structure when:
The total project cost is $1,000 or more, including labor and materials;
The project requires a building permit; or
The contractor uses employees or other workers to perform the work.
The minor-work exemption may apply when the entire project costs less than $1,000 and does not require a building permit or additional workers.
A larger project cannot be divided into several smaller contracts to avoid the licensing requirement. The $1,000 limit applies to the combined value of the work on the project, not merely to each invoice or individual phase.
Unlicensed individuals must also be careful when advertising construction services. Advertisements must clearly state that the individual is not licensed, and an unlicensed person cannot advertise or offer to perform work that legally requires a contractor license.
Review the CSLB’s current licensing threshold and general qualifications or read our complete guide to obtaining a California contractor license.
California does not issue one license simply called a “general contractor license.” The Contractors State License Board, commonly known as the CSLB, issues licenses in specific classifications based on the type of construction work a business will perform.
The principal general contractor classifications are:
Class A – General Engineering Contractor
Class B – General Building Contractor
Class B-2 – Residential Remodeling Contractor
California also issues numerous Class C specialty classifications for contractors whose primary business involves a particular construction trade.
You can review the official CSLB descriptions of contractor license classifications.
Choosing the correct classification is one of the most important parts of the application process. Your classification determines the work you may contract for and the experience and examination requirements you must satisfy.
A Class A General Engineering Contractor performs work involving fixed works that require specialized engineering knowledge and skill.
Examples include:
Highways and roads
Bridges and overpasses
Tunnels
Airports
Dams and levees
Water and sewer systems
Pipelines
Drainage and flood-control systems
Excavation, grading, and earthmoving
Power plants and utility installations
A Class A license is intended for engineering-oriented infrastructure work. It is not a substitute for a Class B license when the principal project involves constructing or remodeling a building.
The Class B General Building Contractor license is the classification most people mean when referring to a California general contractor license.
A Class B contractor’s principal business involves structures built, being built, or to be built that require the use of at least two unrelated building trades or crafts.
Examples of unrelated trades include:
Framing
Concrete
Electrical
Plumbing
Roofing
Drywall
Painting
Flooring
HVAC
Tile
A Class B contractor may take a prime contract for a building project involving the required combination of trades and may coordinate properly licensed specialty subcontractors.
However, a Class B license does not automatically allow a contractor to take every stand-alone specialty project. When a contract involves only one specialty trade, the contractor generally must:
Hold the appropriate specialty classification;
Subcontract the work to a properly licensed specialty contractor; or
Perform work specifically permitted under the Class B scope.
Learn more about the California Class B General Building experience requirements.
The B-2 Residential Remodeling Contractor classification is designed for nonstructural remodeling work on existing residential wood-frame structures.
A B-2 project must involve at least three unrelated trades or crafts under one contract. Permitted work may include:
Drywall
Finish carpentry
Flooring
Insulation
Painting
Plastering
Siding
Tile
Roof repair
Replacement of certain plumbing and electrical fixtures
A B-2 contractor cannot perform structural alterations to load-bearing portions of a building or install, replace, substantially alter, or extend complete electrical, plumbing, or HVAC systems.
Contractors who perform structural remodeling, additions, or new construction will generally need a Class B General Building license rather than a B-2 license.
The complete statutory scope is available on the CSLB B-2 Residential Remodeling classification page.
The person who qualifies the license must be at least 18 years old and possess the experience and skills necessary to manage and supervise construction work in the requested classification.
The qualifying individual may be:
The sole owner;
A qualifying partner;
A Responsible Managing Officer;
A Responsible Managing Employee;
A Responsible Managing Manager; or
A Responsible Managing Member.
The qualifier is the person whose experience and qualifications support the license. This person must exercise genuine supervision and control over the company’s construction operations.
The qualifying individual generally must document at least four full years of qualifying experience in the requested classification during the 10 years immediately before the application is filed.
The experience must be at one or more of the following levels:
Journeyman
Foreman
Supervising employee
Contractor
Owner-builder, when properly documented and accepted
For a Class B General Building application, the experience should demonstrate the applicant’s ability to supervise structural framing or rough carpentry and at least two unrelated building trades associated with building construction.
Simply working in one specialty trade may not establish the broad experience required for a Class B license.
The experience must be certified by someone with firsthand knowledge of the work. A certifier may be an employer, contractor, supervisor, fellow employee, union representative, architect, engineer, building inspector, or another qualified individual who directly observed the applicant’s work.
CSLB may request supporting documentation such as:
W-2 forms
Payroll records
Tax documents
Permits
Contracts
Invoices
Canceled checks
Project lists
Employment records
Applicants should make sure their experience description accurately reflects the requested classification before submitting the application.
The licensing process generally includes the following steps.
Determine whether your work falls under the A, B, B-2, or an appropriate C specialty classification. An original examination application may generally request only one classification.
A California contractor license may be issued to a:
Sole owner
Partnership
Corporation
Limited liability company
Joint venture
Corporations and LLCs must be properly registered and in good standing with the California Secretary of State before CSLB can issue the license.
The application must identify the business, qualifier, requested classification, personnel, and qualifying experience.
Incomplete applications, inconsistent business names, vague experience descriptions, and missing signatures are common causes of processing delays.
Applicants can review the current CSLB Application for Original Contractor License.
The current CSLB application fee for an original license with one classification is $450.
The initial license fee is paid later:
$200 for a sole-owner license
$350 for a non-sole-owner license
Because fees can change, verify the amount on the CSLB fee schedule before filing.
CSLB requires fingerprints for individuals identified on the application. California residents generally complete fingerprinting through Live Scan. Applicants outside California may need to use fingerprint cards.
A criminal conviction does not automatically prevent someone from receiving a contractor license. CSLB evaluates applicable convictions under California law and considers the nature of the offense, its relationship to contracting, the time elapsed, and evidence of rehabilitation.
Applicants should review the CSLB fingerprinting and background-review guidance and answer all application questions accurately.
Most qualifying individuals must pass:
The California Law and Business examination; and
The trade examination for the requested classification.
The Law and Business examination covers subjects such as:
Business organization
Contract requirements
Employment laws
Safety
Insurance
Bonds
Mechanics liens
Financial management
Contractor licensing law
Some applicants may qualify for an examination waiver based on prior California licensure, qualifying service on another license, reciprocity, or other statutory conditions.
Read our guide to California contractor license examination waivers or review our California contractor exam-preparation guide.
After the examinations and application review are complete, CSLB will provide instructions for submitting the remaining issuance items.
These may include:
Initial license fee
Contractor’s bond
Bond of Qualifying Individual, when required
Workers’ compensation certificate or exemption
LLC employee/worker bond, when applicable
LLC liability insurance, when applicable
Applicants should not submit a contractor bond before CSLB requests the issuance documents unless directed to do so.
Every active California contractor license must have a $25,000 contractor’s bond on file with CSLB.
The bond must:
Be issued by a surety company authorized to conduct business in California;
Be written for $25,000;
Show the exact business name and license number appearing on CSLB’s records;
Be submitted on an approved bond form; and
Remain continuously in effect while the license is active.
A contractor’s bond is not liability insurance. It provides limited protection to certain parties harmed by violations of California contractor licensing law. If the surety pays a valid claim, the contractor is generally responsible for reimbursing the surety.
Depending on how the license is qualified, an additional $25,000 Bond of Qualifying Individual may be required. An exemption may be available for certain qualifying owners who hold at least a 10% ownership interest in the licensed entity.
Review the official CSLB contractor bond requirements or learn about obtaining a bond through Contractors License Guru.
California imposes additional requirements on contractor licenses issued to limited liability companies.
An LLC must maintain:
The standard $25,000 contractor’s bond;
A separate $100,000 LLC employee/worker bond; and
Liability insurance with a minimum aggregate limit of $1 million for an LLC with five or fewer personnel of record.
The liability insurance requirement increases by $100,000 for each additional person listed as personnel of record, up to the statutory maximum.
The $100,000 LLC employee/worker bond is separate from the contractor’s bond. It protects employees and workers from certain unpaid wages, interest, fringe benefits, and related obligations.
Review the complete CSLB requirements for LLC contractor licenses.
California contractors with employees must maintain workers’ compensation insurance.
A contractor without employees may sometimes file an exemption. However, California requires certain classifications to maintain workers’ compensation insurance even when they report having no employees.
A Responsible Managing Employee is considered an employee for workers’ compensation purposes. A license qualified by an RME generally cannot claim that it has no employees.
Because these requirements can change, contractors should verify their classification’s current requirements with CSLB.
General liability insurance is not a universal CSLB licensing requirement for every business entity, but it is strongly recommended and is frequently required by clients, landlords, general contractors, and project owners.
General liability insurance can protect a contractor from claims involving:
Bodily injury
Property damage
Completed operations
Personal and advertising injury
California LLC contractor licenses are subject to statutory liability-insurance requirements.
A contractor’s bond and liability insurance serve different purposes. Maintaining a bond does not replace the need for appropriate insurance coverage.
California currently has classification-specific reciprocity arrangements with:
Arizona
Louisiana
Mississippi
Nevada
North Carolina
An applicant generally must have held an active license in good standing in the reciprocal state for the previous five years and apply for a classification covered by the applicable agreement.
Reciprocity may allow CSLB to waive the trade examination. It does not authorize an out-of-state contractor to work in California without first obtaining a California contractor license.
Applicants who passed the NASCLA Commercial General Building examination may also qualify for a Class B trade-examination waiver when CSLB’s current requirements are satisfied.
Review the official CSLB reciprocity requirements.
Contracting without the required license can result in:
Administrative citations and fines
Misdemeanor criminal charges
Possible jail time
Stop orders
Discipline against a future or related license
Difficulty collecting payment
Loss of mechanics lien and bond-claim rights
Disgorgement of compensation received for unlicensed work
California law can prevent an unlicensed contractor from suing to collect compensation for work that required a license. In some circumstances, an unlicensed contractor may also be required to return all compensation received.
A contractor must be properly licensed at all times while performing work that requires a license. Obtaining a license after the project begins generally does not correct an earlier period of unlicensed activity.
An active California contractor license is generally renewed every two years. An inactive license is generally renewed every four years.
