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MMBONDING
Licensing

California LLC Contractor Bond Requirements

A California LLC contractor needs more than the standard license bond. You carry the $25,000 bond plus a $100,000 employee/worker bond, and typically general liability insurance. Here is how the pieces fit.

Illustration for the guide: California LLC Contractor Bond Requirements

The two bonds an LLC needs

Every licensed California contractor carries the $25,000 contractor license bond. An LLC carries that one too, and then a second bond on top of it: the $100,000 LLC employee/worker bond, required under BPC §7071.6.5.

The extra requirement exists for a reason. An LLC limits the owners' personal liability, so the state requires a larger bond to protect employee wages and benefits if the company cannot pay. The second bond fills the gap the LLC structure creates.

Plus liability insurance

  • $25,000 license bond. The baseline every contractor carries.
  • $100,000 employee/worker bond. The LLC-only bond that protects your workers.
  • General liability insurance. Typically required of LLC contractors, and it protects your business from its own losses, which bonds do not.

How we handle it together

You do not need three separate relationships. We place the license bond, the LLC employee/worker bond, and general liability insurance as one package, so your LLC is fully covered without the runaround.

Questions

FAQs

Reviewed by Michael Melshenker, CEO. Updated June 2026.

Why does an LLC need two bonds?
An LLC carries the standard $25,000 license bond like any contractor, plus a separate $100,000 bond under BPC §7071.6.5 that protects employee wages and benefits. The second bond exists because of the LLC structure.
Do I also need insurance?
Almost always. LLC contractors typically carry general liability insurance on top of the two bonds. Bonds protect the public and your workers; insurance protects your business from its own losses.
Can you set all of this up at once?
Yes. We place the license bond, the LLC employee/worker bond, and general liability together so you are not chasing three providers. One file, one point of contact.