CALIFORNIA STATE CONTRACTORS LICENSE LAW AND
BUSINESS TEST STUDY GUIDE STUDY GUIDE / LATEST
VERSION 2025-2026 /QUESTIONS AND CORRECT
ANSWERS / A GRADE SCORE SOLUTION.
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Terms in this set (177)
Who must be licensed as a Anyone who constructs or alters on any job that costs 500
contractor? dollars or more.
How old do your have to be 18
to get a contractors license.
What are the types of Individual, partnership, or corporation licenses. Joint
licenses issued. Venture licenses are made up of 2 individual active
licenses for a specific purpose.
No
Does California recognize
contractors licenses from
other states or countries?
,What charge is it to contract Misdemeanor, meaning potential jail time, fines and administrative
without a license? fines
Are there educational No
requirements to obtain a
contractors license?
Can technical training and Yes. As long as the applicant has a minimum of 1 year of
apprenticeship training practical experience.
substitute the required
training required for the 4
years needed.
Are all applicants required to Yes
submit to a background
check?
What are the total fees I $480.00. The non-refundable processing fee of $300 and the
must pay to obtain a two year initial license fee of $180. Current fees are printed
contractor license? on the application forms and notices.
How often do I have to every two years
renew my license?
Will I receive notice before Yes. 60 days, but remember it is your responsibility to know and
my active license expires? renew without being reminded.
What is the active license $360. You are required to renew every two years.
renewal fee?
Is there a fee for renewing an $180.
active license
Inactive licenses must be Every four years
renewed how often?
$2500
What is the minimum
operating capital that you
must have to qualify to be a
contractor?
, If you are changing the 90 days
business name or address, or
changing the personnel or
business type, how long do
you have to notify the state
of those changes?
If you change owners or the Apply for a new one.
business entity, changing the
license structure, can you
renew your license at the
end of the year or do you
need to apply for a new one.
Can your old license be Yes. If your license has been expired between 3 to 5 years.
renewed?
Another name for the The test-taker. Or the person whom the license is going to be
qualifier. issued.
What is the qualifier called if The owner
he/she is an individual?
What is the qualifier called if Qualifying Partner.
he or she is a partner?
What is the qualifier called if RMO, Responsible Managing Officer
he or she is an officer?
What is the qualifier called if RME, Responsible Managing Employee
he or she is an employee?
80% or 32 hours
How many hours is an
RME, Responsible
Managing Employee
required to work.
BUSINESS TEST STUDY GUIDE STUDY GUIDE / LATEST
VERSION 2025-2026 /QUESTIONS AND CORRECT
ANSWERS / A GRADE SCORE SOLUTION.
Practice questions for this set
Learn
Studied terms
Nice work, you're crushing it
Continue studying in Learn
Terms in this set (177)
Who must be licensed as a Anyone who constructs or alters on any job that costs 500
contractor? dollars or more.
How old do your have to be 18
to get a contractors license.
What are the types of Individual, partnership, or corporation licenses. Joint
licenses issued. Venture licenses are made up of 2 individual active
licenses for a specific purpose.
No
Does California recognize
contractors licenses from
other states or countries?
,What charge is it to contract Misdemeanor, meaning potential jail time, fines and administrative
without a license? fines
Are there educational No
requirements to obtain a
contractors license?
Can technical training and Yes. As long as the applicant has a minimum of 1 year of
apprenticeship training practical experience.
substitute the required
training required for the 4
years needed.
Are all applicants required to Yes
submit to a background
check?
What are the total fees I $480.00. The non-refundable processing fee of $300 and the
must pay to obtain a two year initial license fee of $180. Current fees are printed
contractor license? on the application forms and notices.
How often do I have to every two years
renew my license?
Will I receive notice before Yes. 60 days, but remember it is your responsibility to know and
my active license expires? renew without being reminded.
What is the active license $360. You are required to renew every two years.
renewal fee?
Is there a fee for renewing an $180.
active license
Inactive licenses must be Every four years
renewed how often?
$2500
What is the minimum
operating capital that you
must have to qualify to be a
contractor?
, If you are changing the 90 days
business name or address, or
changing the personnel or
business type, how long do
you have to notify the state
of those changes?
If you change owners or the Apply for a new one.
business entity, changing the
license structure, can you
renew your license at the
end of the year or do you
need to apply for a new one.
Can your old license be Yes. If your license has been expired between 3 to 5 years.
renewed?
Another name for the The test-taker. Or the person whom the license is going to be
qualifier. issued.
What is the qualifier called if The owner
he/she is an individual?
What is the qualifier called if Qualifying Partner.
he or she is a partner?
What is the qualifier called if RMO, Responsible Managing Officer
he or she is an officer?
What is the qualifier called if RME, Responsible Managing Employee
he or she is an employee?
80% or 32 hours
How many hours is an
RME, Responsible
Managing Employee
required to work.
