California State Contractors License Law and Business Test UPDATED
ACTUAL Questions and CORRECT Answers
Question: Who must be licensed as a contractor?
Correct Answer: Anyone who constructs or alters on any job that costs 500 dollars or more.
Question: How old do your have to be to get a contractors license.
Correct Answer: 18
Question: What are the types of licenses issued.
Correct Answer: Individual, partnership, or corporation licenses. Joint Venture licenses are made up of 2
individual active licenses for a specific purpose.
Question: Does California recognize contractors licenses from other states or countries?
Correct Answer: No
Question: What charge is it to contract without a license?
Correct Answer: Misdemeanor, meaning potential jail time, fines and administrative fines
Question: Are there educational requirements to obtain a contractors license?
Correct Answer: No
Question: Can technical training and apprenticeship training substitute the required training required for
the 4 years needed.
Correct Answer: Yes. As long as the applicant has a minimum of 1 year of practical experience.
Question: Are all applicants required to submit to a background check?
Correct Answer: Yes
Question: What are the total fees I must pay to obtain a contractor license?
Correct 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.
Question: How often do I have to renew my license?
Correct Answer: every two years
Question: Will I receive notice before my active license expires?
Correct Answer: Yes. 60 days, but remember it is your responsibility to know and renew without being
reminded.
Question: What is the active license renewal fee?
Correct Answer: $360. You are required to renew every two years.
Question: Is there a fee for renewing an active license
Correct Answer: $180.
Question: Inactive licenses must be renewed how often?
Correct Answer: Every four years
, Question: What is the minimum operating capital that you must have to qualify to be a contractor?
Correct Answer: $2500
Question: 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?
Correct Answer: 90 days
Question: 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.
Correct Answer: Apply for a new one.
Question: Can your old license be renewed?
Correct Answer: Yes. If your license has been expired between 3 to 5 years.
Question: Another name for the qualifier.
Correct Answer: The test-taker. Or the person whom the license is going to be issued.
Question: What is the qualifier called if he/she is an individual?
Correct Answer: The owner
Question: What is the qualifier called if he or she is a partner?
Correct Answer: Qualifying Partner.
Question: What is the qualifier called if he or she is an officer?
Correct Answer: RMO, Responsible Managing Officer
Question: What is the qualifier called if he or she is an employee?
Correct Answer: RME, Responsible Managing Employee
Question: How many hours is an RME, Responsible Managing Employee required to work.
Correct Answer: 80% or 32 hours
Question: How many licenses can an Owner or Qualifying Partner qualify for at a time.
Correct Answer: 3
Question: How may licenses can an RME or RMO qualify for at a time?
Correct Answer: 1
Question: Can you lend your license to someone?
Correct Answer: No. That would be punishable by law.
Question: Can you abandon a project without a legal excuse?
Correct Answer: No. This would be cause for disciplinary action. It is classified as "Breach of Contract".
Question: 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.
Correct Answer: Incidental and supplemental to the primary job. Otherwise it must be performed by a sub.
Question: Can you use funds from one project to finish another?
ACTUAL Questions and CORRECT Answers
Question: Who must be licensed as a contractor?
Correct Answer: Anyone who constructs or alters on any job that costs 500 dollars or more.
Question: How old do your have to be to get a contractors license.
Correct Answer: 18
Question: What are the types of licenses issued.
Correct Answer: Individual, partnership, or corporation licenses. Joint Venture licenses are made up of 2
individual active licenses for a specific purpose.
Question: Does California recognize contractors licenses from other states or countries?
Correct Answer: No
Question: What charge is it to contract without a license?
Correct Answer: Misdemeanor, meaning potential jail time, fines and administrative fines
Question: Are there educational requirements to obtain a contractors license?
Correct Answer: No
Question: Can technical training and apprenticeship training substitute the required training required for
the 4 years needed.
Correct Answer: Yes. As long as the applicant has a minimum of 1 year of practical experience.
Question: Are all applicants required to submit to a background check?
Correct Answer: Yes
Question: What are the total fees I must pay to obtain a contractor license?
Correct 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.
Question: How often do I have to renew my license?
Correct Answer: every two years
Question: Will I receive notice before my active license expires?
Correct Answer: Yes. 60 days, but remember it is your responsibility to know and renew without being
reminded.
Question: What is the active license renewal fee?
Correct Answer: $360. You are required to renew every two years.
Question: Is there a fee for renewing an active license
Correct Answer: $180.
Question: Inactive licenses must be renewed how often?
Correct Answer: Every four years
, Question: What is the minimum operating capital that you must have to qualify to be a contractor?
Correct Answer: $2500
Question: 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?
Correct Answer: 90 days
Question: 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.
Correct Answer: Apply for a new one.
Question: Can your old license be renewed?
Correct Answer: Yes. If your license has been expired between 3 to 5 years.
Question: Another name for the qualifier.
Correct Answer: The test-taker. Or the person whom the license is going to be issued.
Question: What is the qualifier called if he/she is an individual?
Correct Answer: The owner
Question: What is the qualifier called if he or she is a partner?
Correct Answer: Qualifying Partner.
Question: What is the qualifier called if he or she is an officer?
Correct Answer: RMO, Responsible Managing Officer
Question: What is the qualifier called if he or she is an employee?
Correct Answer: RME, Responsible Managing Employee
Question: How many hours is an RME, Responsible Managing Employee required to work.
Correct Answer: 80% or 32 hours
Question: How many licenses can an Owner or Qualifying Partner qualify for at a time.
Correct Answer: 3
Question: How may licenses can an RME or RMO qualify for at a time?
Correct Answer: 1
Question: Can you lend your license to someone?
Correct Answer: No. That would be punishable by law.
Question: Can you abandon a project without a legal excuse?
Correct Answer: No. This would be cause for disciplinary action. It is classified as "Breach of Contract".
Question: 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.
Correct Answer: Incidental and supplemental to the primary job. Otherwise it must be performed by a sub.
Question: Can you use funds from one project to finish another?
