CALIFORNIA STATE CONTRACTORS
LICENSE LAW AND BUSINESS TEST
STUDY GUIDE EXAM 2025 QUESTIONS
AND ANSWERS
Who must be licensed as a contractor? - ANS Anyone who constructs or alters on any job
that costs 500 dollars or more.
How old do your have to be to get a contractors license. - ANS 18
What are the types of licenses issued. - ANS Individual, partnership, or corporation licenses.
Joint Venture licenses are made up of 2 individual active licenses for a specific purpose.
Does California recognize contractors licenses from other states or countries? - ANS No
What charge is it to contract without a license? - ANS Misdemeanor, meaning potential jail
time, fines and administrative fines
Are there educational requirements to obtain a contractors license? - ANS No
Can technical training and apprenticeship training substitute the required training required for
the 4 years needed. - ANS Yes. As long as the applicant has a minimum of 1 year of practical
experience.
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, Are all applicants required to submit to a background check? - ANS Yes
What are the total fees I must pay to obtain a contractor license? - ANS $480.00. The non-
refundable processing fee of $300 and the two year initial license fee of $180. Current fees are
printed on the application forms and notices.
How often do I have to renew my license? - ANS every two years
Will I receive notice before my active license expires? - ANS Yes. 60 days, but remember it is
your responsibility to know and renew without being reminded.
What is the active license renewal fee? - ANS $360. You are required to renew every two
years.
Is there a fee for renewing an active license - ANS $180.
Inactive licenses must be renewed how often? - ANS Every four years
What is the minimum operating capital that you must have to qualify to be a contractor? -
ANS $2500
If you are changing the business name or address, or changing the personnel or business type,
how long do you have to notify the state of those changes? - ANS 90 days
If you change owners or the 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. - ANS Apply for a new
one.
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, Can your old license be renewed? - ANS Yes. If your license has been expired between 3 to 5
years.
Another name for the qualifier. - ANS The test-taker. Or the person whom the license is
going to be issued.
What is the qualifier called if he/she is an individual? - ANS The owner
What is the qualifier called if he or she is a partner? - ANS Qualifying Partner.
What is the qualifier called if he or she is an officer? - ANS RMO, Responsible Managing
Officer
What is the qualifier called if he or she is an employee? - ANS RME, Responsible Managing
Employee
How many hours is an RME, Responsible Managing Employee required to work. - ANS 80% or
32 hours
How many licenses can an Owner or Qualifying Partner qualify for at a time. - ANS 3
How may licenses can an RME or RMO qualify for at a time? - ANS 1
Can you lend your license to someone? - ANS No. That would be punishable by law.
Can you abandon a project without a legal excuse? - ANS No. This would be cause for
disciplinary action. It is classified as "Breach of Contract".
3|P a g e C o p y r i g h t © 2 0 2 5 T H E B R I G H T A L L R I G H T S R E S E R V E D
LICENSE LAW AND BUSINESS TEST
STUDY GUIDE EXAM 2025 QUESTIONS
AND ANSWERS
Who must be licensed as a contractor? - ANS Anyone who constructs or alters on any job
that costs 500 dollars or more.
How old do your have to be to get a contractors license. - ANS 18
What are the types of licenses issued. - ANS Individual, partnership, or corporation licenses.
Joint Venture licenses are made up of 2 individual active licenses for a specific purpose.
Does California recognize contractors licenses from other states or countries? - ANS No
What charge is it to contract without a license? - ANS Misdemeanor, meaning potential jail
time, fines and administrative fines
Are there educational requirements to obtain a contractors license? - ANS No
Can technical training and apprenticeship training substitute the required training required for
the 4 years needed. - ANS Yes. As long as the applicant has a minimum of 1 year of practical
experience.
1|P a g e C o p y r i g h t © 2 0 2 5 T H E B R I G H T A L L R I G H T S R E S E R V E D
, Are all applicants required to submit to a background check? - ANS Yes
What are the total fees I must pay to obtain a contractor license? - ANS $480.00. The non-
refundable processing fee of $300 and the two year initial license fee of $180. Current fees are
printed on the application forms and notices.
How often do I have to renew my license? - ANS every two years
Will I receive notice before my active license expires? - ANS Yes. 60 days, but remember it is
your responsibility to know and renew without being reminded.
What is the active license renewal fee? - ANS $360. You are required to renew every two
years.
Is there a fee for renewing an active license - ANS $180.
Inactive licenses must be renewed how often? - ANS Every four years
What is the minimum operating capital that you must have to qualify to be a contractor? -
ANS $2500
If you are changing the business name or address, or changing the personnel or business type,
how long do you have to notify the state of those changes? - ANS 90 days
If you change owners or the 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. - ANS Apply for a new
one.
2|P a g e C o p y r i g h t © 2 0 2 5 T H E B R I G H T A L L R I G H T S R E S E R V E D
, Can your old license be renewed? - ANS Yes. If your license has been expired between 3 to 5
years.
Another name for the qualifier. - ANS The test-taker. Or the person whom the license is
going to be issued.
What is the qualifier called if he/she is an individual? - ANS The owner
What is the qualifier called if he or she is a partner? - ANS Qualifying Partner.
What is the qualifier called if he or she is an officer? - ANS RMO, Responsible Managing
Officer
What is the qualifier called if he or she is an employee? - ANS RME, Responsible Managing
Employee
How many hours is an RME, Responsible Managing Employee required to work. - ANS 80% or
32 hours
How many licenses can an Owner or Qualifying Partner qualify for at a time. - ANS 3
How may licenses can an RME or RMO qualify for at a time? - ANS 1
Can you lend your license to someone? - ANS No. That would be punishable by law.
Can you abandon a project without a legal excuse? - ANS No. This would be cause for
disciplinary action. It is classified as "Breach of Contract".
3|P a g e C o p y r i g h t © 2 0 2 5 T H E B R I G H T A L L R I G H T S R E S E R V E D
