Any project worth more than $500 in labor and materials requires a contractor in California to hold a license. That applies whether you’re a general contractor overseeing large commercial projects or a specialized trade contractor working on residential homes.
This guide walks through everything you need to know about obtaining, managing, and renewing a California contractor license, including:
- License types
- Requirements
- Costs
- Exam
- Reciprocity considerations
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Types of contractor licenses in California
California uses a classification-based licensing system, meaning the license you need depends on the type of work you perform.
The most common contractor license classifications include:
- Class A – General Engineering Contractor
For large-scale infrastructure projects such as highways, bridges, and utilities. - Class B – General Building Contractor
For projects involving two or more unrelated trades (e.g., framing plus electrical or plumbing). - Class C – Specialty Contractor
For contractors performing work in a single trade, such as:- C-10 Electrical
- C-36 Plumbing
- C-20 HVAC
- C-39 Roofing
The California Contractors State License Board maintains a full list of classifications, which you should review carefully before applying.
Contractor licensing requirements in California
California’s contractor licensing requirements are uniform statewide and are strictly enforced.
Prospective contractors must meet the following criteria to become licensed in California:
- Be at least 18 years old
- Have a valid Social Security number or ITIN (Individual Taxpayer Identification Number)
- Demonstrate four years of journey-level experience within the last 10 years in the relevant classification
- Pass the required licensing exams
- Submit fingerprints and complete a criminal background check
- Have a $25,000 bond in place
- File the required bond and insurance documentation
Who issues contractor licenses in CA?
Contractor licenses are issued and regulated by the California Contractors State License Board (CSLB), a division of the California Department of Consumer Affairs.
The CSLB oversees licensing, enforcement, exams, renewals, and disciplinary actions. You can verify credentials using the official California contractor license lookup tool on the CSLB website.
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How to get a California contractor license
Obtaining a California contractor license is a multi-step process overseen by the California Contractors State License Board (CSLB).
For most applicants, the process takes approximately 3-6 months, depending on application completeness, exam scheduling, and background check timelines. CSLB specifically states that applicants will receive a letter of acknowledgement within 4-6 weeks of applying (though this isn’t necessarily an approval, just acknowledgement that they’ve received your application). The process may take longer if your application is randomly selected for further investigation of work experience claims.
Step 1: Confirm your license classification
Before submitting an application, you must identify the appropriate license classification based on the work you plan to perform. Determine whether you need a Class A, B, or C license and identify the specific specialty classification if applying under Class C. Applying under the wrong classification is one of the most common causes of delays and denials.
Step 2: Document your qualifying work experience
Applicants seeking a California contractor license need to demonstrate at least 4 years of journey-level experience within the past 10 years in the classification they are applying for.
Qualifying experience must meet CSLB standards and generally includes:
- Hands-on work performed at the journey level or higher
- Experience gained as an employee, owner-builder, foreman, supervisor, or contractor
- Work directly related to the license classification
This experience must be certified by a qualified individual, such as a licensed contractor, employer, building inspector, or supervisor.
Step 3: Submit your application to the CSLB
Once your experience is documented, you’ll need to submit the Application for Original Contractor License to the CSLB, along with the required application fee.
At this stage, the CSLB will:
- Review your application for completeness
- Verify experience certifications
- Determine your eligibility to sit for the licensing exams
If information is missing or inconsistent, the CSLB will request corrections, which can add weeks to the timeline.
Step 4: Complete fingerprinting and background checks
After your application is accepted, you’ll need to complete a criminal background check using Live Scan fingerprinting. Fingerprints are reviewed by both the California Department of Justice and the FBI.
A criminal history does not automatically disqualify an applicant, but failure to disclose prior convictions or delays in fingerprint submission can slow approval.
Step 5: Pass the California contractor licensing exams
Most applicants are required to pass two exams:
- Law & Business exam: Covers contracts, safety regulations, labor laws, financial management, liens, and dispute resolution.
- Trade-specific exam: Tests knowledge related to tools, materials, methods, codes, and best practices for the selected license classification.
Exams are computer-based, multiple choice, and administered at CSLB testing centers throughout California. Applicants who don’t pass on the first attempt may retake the exam, but retesting adds time to the licensing process.
Pro tip: Take advantage of the CSLB’s examination study guides to increase your chances of passing on the first try.
Step 6: File bond and insurance requirements
After passing the exams, you must submit all required bonding and insurance documentation before a license can be issued.
This typically includes:
- A $25,000 contractor license bond
- Workers’ compensation insurance, if you have employees
- Additional bonds or coverage, depending on license type and business structure
The license will not be activated until all required documentation is on file and approved.
Step 7: Receive and maintain your active license
Once all requirements are met, the CSLB will issue your California contractor license. At that point, you are legally authorized to bid on and perform work within your license classification.
Remember that contractors are required to:
- Renew their license every two years
- Maintain active bonds and insurance
- Update the CSLB with any changes to business structure, address, or personnel
Cost of getting a California contractor license
The total cost to obtain a California contractor license varies based on license type, bonding rates, and insurance needs. Most applicants should expect to spend approximately $700–$1,500 in fees from application through license issuance.
Key costs include:
- Application and initial license fees: ~$650 total
This includes the CSLB application fee and the initial license issuance fee after passing the required exams. - Fingerprinting and background check: ~$50–$80
Required Live Scan fingerprinting for DOJ and FBI background checks. - Contractor license bond: Typically $100–$300 per year
California requires a $25,000 contractor license bond, with the premium varying based on credit and bond provider. - Workers’ compensation insurance (if applicable): Varies
Required for contractors with employees; costs depend on trade classification and payroll size. - Exam preparation or retesting (optional): $100–$500+
Not required, but commonly used by first-time applicants.
Overall costs tend to fall toward the lower end for solo contractors without employees and increase for contractors with staff, multiple classifications, or additional insurance requirements.
Average salary for general contractors in California
According to data from the U.S. Bureau of Labor Statistics’ Occupational Employment and Wage Statistics for construction managers in California, general contractors and construction managers in the state earn some of the highest wages in the country.
BLS data indicates that annual mean wage for construction managers in California is approximately $129,690, reflecting strong demand across both residential and commercial construction markets.
Compensation varies based on project size, specialization, licensing classification, and whether a contractor operates independently or as part of a larger firm.
Here are the mean annual wages for some of California’s biggest cities:
- San Francisco: Mean annual wage around $161,620
- San Jose: Mean annual wage around $154,850
- Los Angeles: Mean annual wage around $134,670
What does the California contractor licensing exam entail?
Most California contractor license applicants must pass two separate exams administered by the CSLB: the Law & Business exam and a trade-specific exam tied to the license classification.
Both exams are computer-based, multiple-choice tests administered at CSLB testing centers throughout California.
Law & Business exam
The Law & Business exam is required for nearly all contractor license classifications and is designed to ensure contractors understand the legal and operational responsibilities of running a construction business in California.
Topics typically include:
- Contract requirements and bidding laws
- Business organization and financial management
- Employment regulations and workers’ compensation
- Safety regulations and jobsite responsibilities
- Liens, dispute resolution, and project closeout requirements
This exam focuses less on technical skills and more on compliance, risk management, and contractor obligations under California law.
Trade-specific exam
The trade exam evaluates technical knowledge related to the applicant’s specific license classification, such as general building, electrical, plumbing, HVAC, or roofing.
This exam typically covers:
- Tools, materials, and equipment used in the trade
- Installation methods and industry best practices
- Applicable building codes and safety standards
- Plan reading and jobsite problem-solving
Trade exams are tailored to each classification, meaning content and emphasis vary depending on the type of work performed.
Does a California contractor license work in other states?
No, California does not offer full reciprocity with most states, meaning your California contractor license won’t work in most states.
However, the CSLB has limited reciprocity agreements with:
- Arizona
- Louisiana
- Nevada
- North Carolina
Reciprocity generally allows contractors to waive trade exams—but not law exams—and only applies to specific classifications. Contractors must still meet each state’s bonding and registration requirements.
What’s the penalty for operating without a contractor license in California?
Operating as a contractor in California without a valid license is a serious offense. California has some of the strictest contractor licensing laws in the country, and violations can carry significant legal, financial, and reputational consequences.
Civil and criminal penalties
Under California Business and Professions Code §7028, acting as a contractor without a license is a misdemeanor.
Penalties may include:
- Criminal fines of up to $5,000
- Up to six months in county jail
- Administrative civil penalties of up to $15,000
- Additional fines per day for continued unlicensed activity
Penalties can escalate for repeat offenses or for contractors who knowingly misrepresent their license status.
Loss of payment and contract rights
One of the most severe consequences of working without a license in California is the loss of the right to collect payment.
California law explicitly states that unlicensed contractors:
- Can’t sue to recover compensation for work requiring a license
- May be required to return all compensation received, even if the work was completed properly
- Risk having contracts deemed void and unenforceable
This is established under California Business and Professions Code §7031 and applies even if the contractor later becomes licensed.
Impact on future licensing eligibility
Engaging in unlicensed activity can also affect future licensing outcomes.
The CSLB may:
- Deny or delay a contractor license application
- Require additional disclosures related to prior violations
- Impose disciplinary conditions on licensure
Past unlicensed work must be disclosed during the application process and may factor into the CSLB’s evaluation of fitness for licensure, as outlined in CSLB licensing enforcement policies.
How to renew a contractor license in California
California contractor licenses must be renewed every two years to remain active. The CSLB allows contractors to renew their licenses online or by mail, but timing and accuracy matter. Late or incomplete renewals can result in penalties or license suspension.
Here is a step-by-step overview of the renewal process.
Step 1: Confirm your license status and renewal window
Contractors should confirm their license expiration date well in advance and determine whether they are renewing as active or inactive, and as a sole owner or non–sole owner. Renewal fees and requirements vary based on license status and business structure.
Timely renewals must be postmarked or received by the CSLB on or before the expiration date. Renewals submitted after that date are considered delinquent and subject to additional fees.
Step 2: Verify bonding, insurance, and business information
Before submitting a renewal, contractors must ensure all required documentation is current, including:
- The $25,000 contractor license bond
- Workers’ compensation insurance, if applicable
- Accurate business address, ownership, and personnel information
If required bonds or insurance have lapsed, the CSLB may delay or reject the renewal until compliance is restored.
Step 3: Submit the renewal application and fees
Renewals can be completed online through the CSLB portal or by submitting a paper renewal form with the appropriate fees. Contractors renewing an inactive license must still submit the renewal on time to avoid penalties, even if they are not actively performing work.
Step 4: Address any deficiencies or follow-up requests
If the CSLB identifies missing information, unpaid fees, or compliance issues, they may issue a notice requesting corrections. Responding promptly helps avoid extended lapses in license status.
California contractor license renewal fees
Getting your business license in California
In addition to holding a California contractor license, most contractors are also required to obtain a business license to legally operate in the state. A contractor license authorizes you to perform construction work, while a business license allows you to operate a business within a specific jurisdiction.
Business licenses are issued at the local level, not by the state, and requirements vary depending on where your business is located and where work is performed.
State registration requirements
Before applying for a local business license, contractors must register their business with the state if they operate as a legal entity.
- Sole proprietors operating under their own legal name may not need to register with the state.
- LLCs, corporations, and partnerships must register with the California Secretary of State.
- Contractors operating under a fictitious business name (DBA) must file a Fictitious Business Name Statement with the appropriate county.
State registration establishes your business entity but does not replace local licensing requirements.
Local business licenses
Most contractors must obtain a business license from the city or county where their business is physically located. In some cases, additional licenses may be required in jurisdictions where work is performed, especially for contractors operating across multiple cities or counties.
Local business licenses typically require:
- Business entity information and address
- Proof of contractor license
- Paying a local business tax or fee
Requirements, fees, and renewal schedules vary by jurisdiction.
How to manage your California contractor license
Managing a California contractor license goes beyond initial approval and renewal. Ongoing compliance requires you to track multiple moving pieces — license status, renewal deadlines, bonds, insurance, and business information — often while operating across multiple jobs, entities, or jurisdictions.
PermitFlow’s license registration management solution is built to take that work off your plate.
Instead of tracking deadlines and requirements across spreadsheets, emails, and state portals, PermitFlow centralizes all licensing data in one system and keeps your team aligned on what needs attention and when.
With PermitFlow, contractors can:
- Track California contractor license status and renewal deadlines in one place
- Maintain visibility into bonding and insurance requirements tied to active licenses
- Reduce the risk of missed renewals, penalties, or work stoppages
- Scale licensing operations as the business expands into new trades or jurisdictions
Get a demo to see how PermitFlow simplifies California contractor license management.
