🏛️ CSLB License Guide: California Contractor Licensing
The Contractors State License Board (CSLB) regulates virtually all construction activity in California. If you're performing work valued at $500 or more (combined labor and materials), you need a license. This isn't a suggestion — it's the law, and CSLB actively enforces it through sting operations, complaint investigations, and criminal prosecution.
California takes licensing more seriously than almost any other state. CSLB has its own enforcement division that runs undercover operations targeting unlicensed contractors. The penalties include criminal charges, not just fines. Treat your license as essential as your bonding capacity.
Who Needs a License?
The $500 Rule
Any person or company that constructs, alters, repairs, demolishes, or adds to any building, highway, road, parking facility, railroad, excavation, or other structure in California must hold a CSLB license if the total value of the project (labor + materials) is $500 or more.
| Situation | License Required? |
|---|---|
| Remodel project worth $600 | Yes |
| Handyman work under $500 | No — but must not advertise as a contractor |
| Material-only supply (no installation) | No |
| Owner-builder on own property | Exempt (with limitations) |
| Employee doing work for employer | No — employees don't need individual licenses |
| Subcontractor on a licensed contractor's project | Yes — every tier needs its own license |
| Out-of-state contractor working in California | Yes — no reciprocity |
California does not recognize contractor licenses from any other state. An Arizona ROC license, a Nevada contractor license, or a Florida license means nothing in California. You must apply for and obtain a California CSLB license independently. There is no shortcut.
License Classifications
CSLB issues three types of licenses:
A — General Engineering
Covers projects that are primarily engineering in nature — roads, bridges, dams, utilities, pipelines, treatment plants. Requires experience in at least 2 of the following: grading, paving, pipelines, treatment plants, dams/reservoirs, or similar.
B — General Building
Covers projects that are primarily building structures — residential, commercial, and institutional. A "B" license holder can perform two or more unrelated trades on a project (framing + plumbing + electrical). Cannot perform a single specialty trade unless also holding that "C" license.
A common misconception: a "B" license doesn't let you do everything. You can self-perform multiple trades on a building project, but you cannot advertise or contract for a single specialty trade (like only electrical or only plumbing) without holding the appropriate "C" license.
C — Specialty Contractors
There are 43 specialty classifications. The most common in construction:
| Classification | Trade |
|---|---|
| C-2 | Insulation and Acoustical |
| C-4 | Boiler, Hot Water Heating, and Steam Fitting |
| C-5 | Framing and Rough Carpentry |
| C-7 | Low Voltage Systems |
| C-8 | Concrete |
| C-9 | Drywall |
| C-10 | Electrical |
| C-15 | Flooring and Floor Covering |
| C-16 | Fire Protection |
| C-17 | Glazing |
| C-20 | HVAC |
| C-21 | Building Moving/Demolition |
| C-22 | Asbestos Abatement |
| C-23 | Ornamental Metal |
| C-27 | Landscaping |
| C-29 | Masonry |
| C-33 | Painting and Decorating |
| C-34 | Pipeline |
| C-35 | Lathing and Plastering |
| C-36 | Plumbing |
| C-38 | Refrigeration |
| C-39 | Roofing |
| C-42 | Sanitation System |
| C-43 | Sheet Metal |
| C-46 | Solar |
| C-50 | Reinforcing Steel |
| C-51 | Structural Steel |
| C-53 | Swimming Pool |
| C-54 | Tile |
| C-57 | Well Drilling |
| C-61 | Limited Specialty (various subcategories) |
Multiple Classifications
A single license can hold multiple classifications. Many contractors hold a "B" plus one or more "C" licenses. Each additional classification requires passing the relevant trade exam.
Application Requirements
Experience
| License Type | Experience Required |
|---|---|
| Any classification | Minimum 4 years of journey-level experience within the last 10 years |
| Qualifying individual | Must be an owner, officer, or RME (Responsible Managing Employee) |
| Experience verification | Certified by previous employers or supported by documentation |
Examination
Every applicant must pass two exams:
| Exam | Content | Format |
|---|---|---|
| Law & Business | California construction law, contracts, insurance, safety, accounting, estimating | Multiple choice, computer-based |
| Trade exam | Technical knowledge specific to the classification | Multiple choice, computer-based |
Exam Details
| Factor | Details |
|---|---|
| Passing score | 72% on each exam |
| Time limit | Varies by classification (typically 2.5–3.5 hours per exam) |
| Retake policy | Can retake after 18 days; after 3 failures, must wait 60 days |
| Study materials | CSLB does not publish study guides — use third-party prep courses |
| Testing centers | PSI testing centers throughout California |
| Cost | Included in application fee |
The Law & Business exam covers California-specific contract law, lien law, CSLB regulations, insurance requirements, and accounting. It's not trivial — the pass rate for first-time takers is around 50%. Invest in a study course, especially if you're from out of state.
Bonds and Insurance
Contractor's License Bond
| Requirement | Details |
|---|---|
| Amount | $25,000 for most classifications |
| C-39 Roofing | $100,000 bond required |
| C-22 Asbestos | Additional $100,000 bond |
| Purpose | Protects the public against incomplete or defective work |
| Duration | Must be maintained continuously while license is active |
| Bond of Qualifying Individual | $25,000 — required for RME or RMO |
Workers' Compensation Insurance
| Requirement | Details |
|---|---|
| Coverage | Required if you have any employees (even one) |
| Exemption | Sole owner with no employees can file a Certificate of Exemption |
| Proof | Must be on file with CSLB — your license shows WC status |
| Cancellation | If your WC lapses, CSLB automatically suspends your license |
If your workers' comp insurer cancels your policy and you don't replace it or file an exemption, CSLB will automatically suspend your license. You'll find out when a GC checks your license and sees it's suspended — or when CSLB sends you a notice. Set up renewal reminders well in advance.
General Liability Insurance
CSLB does not require general liability insurance for licensing — but virtually every GC, project owner, and subcontract will require it. Typical minimums:
| Coverage | Common Requirement |
|---|---|
| General Liability | $1M per occurrence / $2M aggregate |
| Auto Liability | $1M combined single limit |
| Umbrella | $2M–$5M (for larger projects) |
Application Process
Step-by-Step
| Step | Action | Timeline |
|---|---|---|
| 1 | Complete application (online or paper) | 1–2 hours |
| 2 | Pay application fee ($450 for original license) | At submission |
| 3 | CSLB reviews application | 2–4 weeks |
| 4 | Schedule and pass exams (Law & Business + Trade) | 2–6 weeks |
| 5 | Submit fingerprints (Live Scan) | At application or after exam |
| 6 | Obtain bond ($25,000 contractor's bond) | 1–3 days |
| 7 | Obtain workers' comp (or file exemption) | 1–5 days |
| 8 | CSLB issues license | 1–3 weeks after all requirements met |
Total Timeline
Best case: 6–8 weeks from application to license
Typical: 8–14 weeks
Worst case (background issues, exam failures): 4–6 months
Fees
| Fee | Amount |
|---|---|
| Original application | $450 |
| Rescheduled exam | $100 |
| Initial license fee | $250 |
| Biennial renewal | $450 |
| Add classification | $150 (plus exam) |
| Home Improvement Salesperson (HIS) | $75 (registration) |
| Inactive license renewal | $225 |
License Renewal
| Requirement | Details |
|---|---|
| Cycle | Every 2 years |
| Cost | $450 |
| Continuing education | Not currently required by CSLB for renewal (some local jurisdictions may require) |
| Late renewal | License is delinquent — can't legally work during delinquency |
| Expired license | After 5 years of delinquency, license is cancelled — must reapply from scratch |
| Bond | Must maintain current bond throughout renewal period |
| Workers' comp | Must maintain current coverage or valid exemption |
Renewal Checklist
- Verify renewal notice received (CSLB mails ~60 days before expiration)
- Pay $450 renewal fee before expiration date
- Confirm bond is current with surety
- Confirm workers' comp is current with insurer
- Update any business information (address, officers, etc.)
- Verify license status online after renewal: CSLB License Check
Penalties for Unlicensed Work
Criminal Penalties
| Offense | Penalty |
|---|---|
| First offense | Misdemeanor: up to 6 months jail and/or $5,000 fine |
| Subsequent offense | Misdemeanor: up to 1 year jail and/or $5,000 fine |
| With injury | Enhanced penalties |
| Using fraudulent license | Misdemeanor with additional fines |
Civil Penalties
| Consequence | Details |
|---|---|
| Administrative fine | Up to $15,000 per violation |
| Contract voidability | Property owner can void the contract |
| No lien rights | Cannot file a mechanics lien for unlicensed work |
| No lawsuit for payment | Cannot sue to collect payment for unlicensed work (Business & Professions Code §7031) |
| Disgorgement | May have to return all compensation received for unlicensed work |
Under B&P Code §7031, a person who performs work while unlicensed must return all compensation received — not just the profit, but the entire amount including materials and labor costs. This rule has been strictly enforced by California courts. An unlicensed contractor who completed a $500,000 project could be ordered to return the entire $500,000.
CSLB Enforcement Operations
CSLB runs active enforcement programs:
| Program | Description |
|---|---|
| SWIFT (Statewide Investigative Fraud Team) | Undercover sting operations targeting unlicensed contractors |
| Complaint investigation | Investigates consumer and contractor complaints |
| Joint task forces | Partners with DA offices, DIR, and law enforcement |
| Disaster response | Increased enforcement after natural disasters (fires, earthquakes) targeting fraud |
License Lookup and Verification
Before hiring a subcontractor or entering a joint venture, always verify the license:
What to Check
| Factor | Where to Find |
|---|---|
| License status | CSLB License Check |
| Classification(s) | On the license detail page |
| Workers' comp status | Listed as "Has WC Insurance" or "Exempt" |
| Bond status | Listed on the license detail page |
| Personnel | Officers, RME, and associated people listed |
| Complaint history | Shows legal actions, citations, and complaints |
| Disciplinary actions | Public record — bonds posted, suspensions, revocations |
Red Flags
| Red Flag | What It Means |
|---|---|
| "Inactive" status | Cannot legally perform work |
| "Suspended" status | Bond, WC, or disciplinary issue — cannot work |
| "Revoked" status | Serious violations — do not hire |
| No WC insurance and not exempt | Suspended by operation of law |
| Multiple complaints | Investigate before contracting |
Special Requirements by Trade
| Trade | Special Requirement |
|---|---|
| C-10 Electrical | Must also hold state certification for certain work |
| C-22 Asbestos | Additional $100,000 bond + EPA/DOSH certifications |
| C-39 Roofing | $100,000 bond (instead of standard $25,000) |
| C-36 Plumbing | May need local jurisdiction registration |
| C-16 Fire Protection | State Fire Marshal requirements |
| C-7 Low Voltage | Alarm company operator license may also be required |
| C-46 Solar | Additional consumer protection requirements |
For Out-of-State Contractors
If you're entering California from another state:
What You Need to Know
| Issue | Reality |
|---|---|
| License reciprocity | None — must apply fresh |
| Experience counts | Out-of-state experience qualifies for the 4-year requirement |
| Exam required | Yes — both Law & Business and Trade exam |
| Timeline | Plan 8–14 weeks minimum |
| Bond and insurance | Must obtain California-compliant bond and WC |
| Business registration | Must also register with California Secretary of State as a foreign entity |
| DIR registration | Additional requirement for public works |
Action Plan for Out-of-State Contractors
- 3–4 months before first California project:
- Submit CSLB application
- Schedule exam prep course (focus on California law differences)
- Begin bond and insurance procurement
- 2–3 months before:
- Pass Law & Business and Trade exams
- Complete Live Scan fingerprinting
- Obtain bond and WC coverage
- 1–2 months before:
- Receive CSLB license
- Register with California Secretary of State
- Register with DIR if doing public works
- Obtain local business licenses in cities where you'll work
- Before starting work:
- Verify license is active on CSLB website
- Post license number on all vehicles, contracts, and advertising
Related Resources
- California Compliance Hub — Overview of all California requirements
- DIR Registration & Compliance — Public works registration
- Cal/OSHA vs. Federal OSHA — Safety requirements
- SB 727: Subcontractor Liability — Wage theft liability
- Multi-State Compliance — Working across state lines
- Insurance Guide — Coverage requirements
- Bonding Guide — Bond requirements
CSLB rules and fees change. Verify current requirements at cslb.ca.gov. Last reviewed: February 2026.