CSLB Contractors License Law and Business Questions and Answers 100% Verified

CSLB Contractors License Law and Business
Questions and Answers 100% Verified

Question:

What is the minimum bond amount required for a contrac- tor license in California?


Answer:

$25,000



Question:

What is the first-time penalty for acting as a contractor with- out a license in California?


Answer:

A misdemeanor for first offense with up to



Question:

What does CSLB issue to a con- tractor for a minor violation as a warning?


Answer:

Notice of Correction Notice



Question:

How long does citations against licensed contractors disclosed to the public?


Answer:

5 years

, Question:

What is the maximum allow- able down payment for a home improvement contract in Cali-

fornia?


Answer:

$1000 or 10% of the contract price, whichever is less



Question:

Which business structure pro- vides liability protection similar to a corporation but has differ-

ent tax treatment?


Answer:

Limited Liability Company LLC



Question:

What type of bond guarantees both job completion and pay- ment of all labor and materials?


Answer:

A Performance and Payment Bond guarantees both job com- pletion and payment of all

labor and materials.



Question:

What is the minimum liability insurance required for a limited liability company (LLC) with five

or fewer personnel?


Answer:

1 million