LLC contractor bonding by the numbers
- $25,000
- California contractor license bond, required since Jan 1, 2023
- CA Business & Professions Code, 2023
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. If an employee rather than an owner qualifies your license, a third bond comes with it, and the full bond stack shows how the layers fit together.
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.