Getting licensed by the numbers
- $25,000
- California contractor license bond, required since Jan 1, 2023
- CA Business & Professions Code, 2023
¿Prefiere leer esto en español? Licencia de contratista en California, paso a paso
First: do you need a license at all?
You need a CSLB license for any construction or improvement project where the aggregate price is $1,000 or more, or where the work requires a building permit at any price. Below that line, the minor work exemption in BPC §7048 can apply, and work that needs no license needs no license bond either.
The figure is the part worth checking. It was $500 for decades and AB 2622 doubled it to $1,000 effective January 1, 2025. Plenty of contractors, and plenty of pages still answering this question, are working from the old number.
Read the exemption narrowly, because four things cancel it independently:
- The job requires a building permit.
- The person hires or employs anyone to help with the work.
- The work is part of a larger project, or a bigger job was split into sub-threshold contracts.
- The person advertises, or puts up a sign or card, suggesting they are a contractor.
The price test covers labor, materials and every other item on the whole undertaking, not a single invoice and not labor alone. It also runs under the threshold rather than up to it, so a job at exactly $1,000 needs a license. On advertising, BPC §7027.2 lets an unlicensed person advertise for work under the threshold only if the advertisement says they are not licensed.
If any of that puts you over the line, the rest of this page is your path. Everything from here assumes you are getting licensed.
Step 1: Meet the experience requirement
The CSLB expects roughly four years of journey-level experience in the trade you are applying for, generally earned within the last ten years. That means work at the level of a journeyman, foreman, supervisor, or owner-builder, not entry-level labor. Some approved education or apprenticeship can count toward part of the requirement.
Step 2: Apply to the CSLB
Next you submit an application to the Contractors State License Board for the classification you qualify for, whether that is a general class or a specialty. This is where you name your qualifying individual, and if that person is an employee rather than an owner the license carries a second bond. You also pay an application and licensing fee here. If you are unsure which classification fits, our classifications guide walks through A, B, and the C-## trades.
Step 3: Pass the exams
Most applicants sit for two exams: a law and business exam that every classification shares, and a trade exam specific to your classification. Preparation matters here, and it is the step that trips people up. An exam-prep course can make the difference. See contractor license exam prep to get ready.
Step 4: Fingerprinting and fees
After you pass, the CSLB requires fingerprinting for a background check, along with the applicable licensing fees. This is a routine clearance step, but it has to be complete before your license can issue.
Step 5: Get bonded and insured
The final requirement is bonding. Every licensee must file the $25,000 contractor license bond under BPC §7071.6. On top of that:
- Licensing as an LLC? You also file the $100,000 LLC employee/worker bond under
BPC §7071.6.5. - Have employees? California requires workers' comp coverage on file before your license activates.
- Just starting out? A thin track record does not stop you from getting bonded. See getting bonded as a new contractor.
The bond is where we come in. Once you approve your quote, the surety e-files it with the CSLB, usually within 24 to 48 business hours, so this last step does not stall your license. Underwriting still applies, but we shop it to find your best available rate. Start a quote when you reach this step.
