California State Contractors License
Law and Business Test Study Guide
Who must be licensed as a contractor? - ✔✔ correct 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. - ✔✔ correct answer 18
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.
Does California recognize contractors licenses from other states or countries? - ✔✔ correct answer
No
What charge is it to contract without a license? - ✔✔ correct answer Misdemeanor, meaning
potential jail time, fines and administrative fines
Are there educational requirements to obtain a contractors license? - ✔✔ correct answer No
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.
Are all applicants required to submit to a background check? - ✔✔ correct answer Yes
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.
How often do I have to renew my license? - ✔✔ correct answer every two years
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.
What is the active license renewal fee? - ✔✔ correct answer $360. You are required to renew every
two years.
, California State Contractors License
Law and Business Test Study Guide
Is there a fee for renewing an active license - ✔✔ correct answer $180.
Inactive licenses must be renewed how often? - ✔✔ correct answer Every four years
What is the minimum operating capital that you must have to qualify to be a contractor? - ✔✔
correct 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? - ✔✔ correct 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. - ✔✔ correct answer Apply for
a new one.
Can your old license be renewed? - ✔✔ correct answer Yes. If your license has been expired between
3 to 5 years.
Another name for the qualifier. - ✔✔ correct answer 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? - ✔✔ correct answer The owner
What is the qualifier called if he or she is a partner? - ✔✔ correct answer Qualifying Partner.
What is the qualifier called if he or she is an officer? - ✔✔ correct answer RMO, Responsible
Managing Officer
What is the qualifier called if he or she is an employee? - ✔✔ correct answer RME, Responsible
Managing Employee
How many hours is an RME, Responsible Managing Employee required to work. - ✔✔ correct answer
80% or 32 hours
Law and Business Test Study Guide
Who must be licensed as a contractor? - ✔✔ correct 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. - ✔✔ correct answer 18
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.
Does California recognize contractors licenses from other states or countries? - ✔✔ correct answer
No
What charge is it to contract without a license? - ✔✔ correct answer Misdemeanor, meaning
potential jail time, fines and administrative fines
Are there educational requirements to obtain a contractors license? - ✔✔ correct answer No
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.
Are all applicants required to submit to a background check? - ✔✔ correct answer Yes
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.
How often do I have to renew my license? - ✔✔ correct answer every two years
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.
What is the active license renewal fee? - ✔✔ correct answer $360. You are required to renew every
two years.
, California State Contractors License
Law and Business Test Study Guide
Is there a fee for renewing an active license - ✔✔ correct answer $180.
Inactive licenses must be renewed how often? - ✔✔ correct answer Every four years
What is the minimum operating capital that you must have to qualify to be a contractor? - ✔✔
correct 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? - ✔✔ correct 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. - ✔✔ correct answer Apply for
a new one.
Can your old license be renewed? - ✔✔ correct answer Yes. If your license has been expired between
3 to 5 years.
Another name for the qualifier. - ✔✔ correct answer 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? - ✔✔ correct answer The owner
What is the qualifier called if he or she is a partner? - ✔✔ correct answer Qualifying Partner.
What is the qualifier called if he or she is an officer? - ✔✔ correct answer RMO, Responsible
Managing Officer
What is the qualifier called if he or she is an employee? - ✔✔ correct answer RME, Responsible
Managing Employee
How many hours is an RME, Responsible Managing Employee required to work. - ✔✔ correct answer
80% or 32 hours
