How To Get a Contractors License

A Bite-Sized Legal Guide

Who should use this guide: Contractors licenses are required for a lot of different kinds of work. If you do any work related to the construction of houses or other buildings, including landscaping, then this guide is for you.

What kind of work do I need a contractors license for?

Whenever you do work related to construction, road improvements, or other construction projects, you may need to be a licensed contractor or work for one. The Contractors State License Board (CSLB) is the agency in California that is authorized to license and regulate the contracting industry.

There are three categories of contractors licenses: General Engineering Contractor, General Building Contractor, and Specialty Contractor. Within the Specialty Contractor category, there are 42 classifications. One of the Specialty Contractor classifications, (C-61) Limited Specialty, is further broken down into 65 sub-classifications. In addition to these classifications, there are two certificates that are required for any contractor doing (1) asbestos-related work or (2) hazardous substance removal.

These are just some of the license classifications, as an example: Fencing, Earthwork and Paving, Painting and Decorating, Landscaping, Masonry, Plumbing, Roofing, Electrical, Sign, Solar, and Welding.

Can I do any contractor work without a license?

You can perform a single job at a time that costs less than $500 (including labor and materials). You can’t divide up a larger job into projects that cost less than $500 each to avoid getting a license.

If you are an employee of a licensed contractor, and you don’t also run your own contracting business, then you do not need a license for any work that your employer has a valid contractors license.

What penalties are there if I do contractor work without a license?

Contracting without a license is a misdemeanor that is punishable by a fine of up to $5000 or 6 months in jail, or both.

Advertising that you are a contractor when you don’t have a license is also a misdemeanor that is punishable by a fine of between $700-$1000.

If you are cited for not being licensed for the entire duration of a contract, you cannot collect any money for work performed, and in fact, any money you have already received can be ordered returned to the person who contracted you for the work.

If you apply for a building or other permit without a license, you can be fined up to $500.

How do I get a contractors license?

Step 1: Fill out an initial application and submit with certification of work experience and application fee. The application fee is $330 and is nonrefundable.

• Must provide either Social Security Number OR Individual Taxpayer Identification Number.
• Must have at least 4 years of work experience that can be certified by previous employer or contractor.
• The application requires disclosure of any previous criminal record.

Step 2: If your application is approved, take the licensing examination.

• There are testing centers in various cities, you will be assigned the one closest to your zip code.
• You will find out if you passed or failed immediately.
• It costs $60 to reschedule another exam.

Step 3: If you passed the exam, get fingerprinted. You will receive instructions in the mail on this process.

• Click here to find the nearest “LiveScan” location.
• Fingerprinting costs $49.

Step 4: File a Contractor’s Bond and pay classification fees

• The initial classification you choose costs $200.
• Every contractor needs to file a bond of $15,000 with the CSLB before they can be licensed. Bonds must be obtained from an insurance company licensed in CA. Bond premiums can vary greatly based on the applicant’s credit score. Shop around for rates.

I’m a gardener, do I need a Landscaper Contractor license?

This is a grey area in the law. There is no bright line between work that a gardener can do and work that must be done by a landscape contractor. The CSLB has put together a pamphlet called Choosing the Right Landscaper that lists sample projects that require a landscape contractor, including: fences, arbors and decks, irrigation systems, landscape lighting, tree trimming, patios, and more. Without more specific guidance in law, here is a basic rule of thumb:

• You probably DO NOT need a landscape contractor license if your work primarily involves maintaining existings landscapes.
• You probably DO NEED a landscape contractor license if your work includes designing and planning landscape installations, in addition to maintaining them.

More Resources

License Classifications - The Contractors State License Board (CSLB) lists all of the classifications for the various contractors licenses available in the state of California.

Step-by-Step Guide to getting a Contractors License - The CSLB website lists the steps required to apply for a contractors license.

Sample Original Application - See this example application as a reference when you fill out your application.

Contractor’s Bonds - Information about contractor’s bonds and how to obtain them.

Contractors License Application Workshops - This CSLB webpage lists upcoming workshops for applicants interested in obtaining a Contractors License.

Revised January, 2018