How to Get a Contractor License in California: A Step-by-Step Guide

Becoming a licensed contractor in California is essential to operate legally and grow your business.

The California Contractors State License Board (CSLB) oversees the licensing process to ensure contractors meet the necessary standards.

Here’s how you can get started.

Step-by-Step Guide to Getting Your Contractor License in California

1. Determine Your Contractor License Classification

The CSLB offers a range of license classifications. These include:

• Class A – General Engineering Contractor
• Class B – General Building Contractor
• Class C – Specialty Contractor (e.g., electrical, HVAC, roofing)

For more information, refer to the CSLB License Classifications.

2. Meet the Basic Requirements

To apply for a contractor license in California, you must:

• Be at least 18 years old.
• Have at least four years of journey-level experience in your trade within the last 10 years.
• Possess a valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).

3. Complete the CSLB Application

Download and fill out the Application for Original Contractor License.

• Choose whether you are applying for a sole proprietorship, partnership, or corporation.
• Have your work experience verified by a qualifying individual, such as an employer or supervisor.

4. Prepare for and Pass the CSLB Exams

Most applicants need to pass two exams:

• Law and Business Exam: Focuses on California’s legal, safety, and financial regulations for contractors.
• Trade Exam: Specific to the license classification you are applying for.

5. Secure a Surety Bond

All California contractors must have a $25,000 surety bond in place. This bond protects your clients from financial losses due to contract violations.

6. Obtain General Liability Insurance

Liability insurance is not required by CSLB but is strongly recommended. It protects your business from:

• Property damage
• Bodily injury claims
• Lawsuits related to your work

Many contractors choose policies with at least $1 million in coverage which is the industry standard.

7. Submit Your Application and Pay Fees

Once your application is complete:

• Mail it to CSLB along with the $450 application fee.
• After approval, you’ll pay a $200 licensing fee to finalize your license.

8. Maintain Your License

• Renew your license every two years.
• Keep your surety bond and insurance policies current.
• Notify CSLB of any changes to your business structure or contact information.

Why Liability Insurance Matters

Even if it’s not required by CSLB, liability insurance is crucial for protecting your contracting business. Accidents, property damage, or legal claims can cost you significantly—insurance ensures you stay covered and compliant with most job requirements.

Ready to Get Licensed?
Follow these steps to obtain your California contractor license through the CSLB and establish your business for success.

Need help with liability insurance? Contact us today for affordable and tailored coverage for California contractors! (866)960-5550 service@artisanliabilityinsurance.com