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California State Contractor’s License Law And Business Exam Study Guide– Real State Exam Questions & Verified Answers – Pass First Attempt Guaranteed – Instant Download- Newest 2026 Update!!!!!

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CALIFORNIA STATE CONTRACTOR’S LICENSE LAW AND BUSINESS EXAM STUDY GUIDE– REAL STATE EXAM QUESTIONS & VERIFIED ANSWERS – PASS FIRST ATTEMPT GUARANTEED – INSTANT DOWNLOAD- NEWEST 2026 UPDATE!!!!!

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Who must be licensed as a contractor? - ANSWER 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. - ANSWER 18



What are the types of licenses issued. - ANSWER Individual, partnership, or corporation
licenses. Joint Venture licenses are made up of 2 individual active licenses for a specific pur-
pose.



Does California recognize contractors licenses from other states or countries? - ANSWER
No



What charge is it to contract without a license? - ANSWER Misdemeanor, meaning poten-
tial jail time, fines and administrative fines



Are there educational requirements to obtain a contractors license? - ANSWER No



Can technical training and apprenticeship training substitute the required training required
for the 4 years needed. - ANSWER Yes. As long as the applicant has a minimum of 1 year
of practical experience.



Are all applicants required to submit to a background check? - ANSWER Yes



What are the total fees I must pay to obtain a contractor license? - ANSWER $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.

1

,How often do I have to renew my license? - ANSWER every two years



Will I receive notice before my active license expires? - ANSWER Yes. 60 days, but re-
member it is your responsibility to know and renew without being reminded.



What is the active license renewal fee? - ANSWER $360. You are required to renew every
two years.



Is there a fee for renewing an active license - ANSWER $180.



Inactive licenses must be renewed how often? - ANSWER Every four years



What is the minimum operating capital that you must have to qualify to be a contractor? -
ANSWER $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? - ANSWER 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. - ANSWER Ap-
ply for a new one.



Can your old license be renewed? - ANSWER Yes. If your license has been expired be-
tween 3 to 5 years.



Another name for the qualifier. - ANSWER The test-taker. Or the person whom the license
is going to be issued.




2

, What is the qualifier called if he/she is an individual? - ANSWER The owner



What is the qualifier called if he or she is a partner? - ANSWER Qualifying Partner.



What is the qualifier called if he or she is an officer? - ANSWER RMO, Responsible Man-
aging Officer



What is the qualifier called if he or she is an employee? - ANSWER RME, Responsible
Managing Employee



How many hours is an RME, Responsible Managing Employee required to work. - AN-
SWER 80% or 32 hours



How many licenses can an Owner or Qualifying Partner qualify for at a time. - ANSWER 3



How may licenses can an RME or RMO qualify for at a time? - ANSWER 1



Can you lend your license to someone? - ANSWER No. That would be punishable by law.



Can you abandon a project without a legal excuse? - ANSWER No. This would be cause
for disciplinary action. It is classified as "Breach of Contract".



A contractor is not prohibited from taking and executing a contract involving the use of two
or more crafts or trades, if the performance of the work is _____ and supplemental to the
primary job. - ANSWER Incidental and supplemental to the primary job. Otherwise it
must be performed by a sub.



Can you use funds from one project to finish another? - ANSWER No. This falls under the
category of Larceny and is a misdemeanor or felony.



3

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