California State Contractors Law and
Business Study Guide
Who must be licensed as a contractor? - ANSAll who construct or alter any residential or
commercial work that cost more than $500 (labor+material)
How old do you have to be to obtain a contractor license? - ANS18 years old
How many years of experience are required to obtain a contractors license - ANSAt least 4
years at a journeyman level.
Is anyone exempt from the requirements to be licensed? - ANSYes. 1)Representatives of
Federal, state, County, City, or other local governments. 2) Officers of a court acting within
the scope of their own business. 3) Owners or tenants engaged in petroleum or gas
operations. 4) Manufacturers of mobile homes. 5) Employees working for wages as their
sole compensation. 6) Property Owners who build or improve their own property.
Licenses are issued - ANSPer entity. Individual license, Partnership License, Joint Venture
License etc. Each count as an entity
Does California recognize contractor licenses issued by other states or countries? - ANSNo.
But it does have reciprocal agreements with some states that recognize the experience
qualification.
What happens if you contract without a license? - ANSMisdemeanor charge. Unlicensed
contractors face potential sentences of up to 6 months in jail and/or $500 fine, and potential
administrative fines of $200-$15,000 because it is illegal to contract without a contractor's
license.
Are there educational requirements to obtain a contractor license? - ANSNo. However, many
community colleges and private schools offer instruction in vocational education.
Can technical training substitute the required experience? - ANSYes. Education in the trade
or technical training and apprenticeship training can substitute the 4 years of experience
required as long as the applicant has a min. Of 1 year of practical experience.
Are there special requirements for contractors who work with asbestos? - ANSYes. Special
knowledge and training is needed. Certification, registration, reporting and safety
requirements are required by the DOSH, OSHA and C.S.L.B
Are all applicants submitted to a criminal background check? - ANSYes. All applicants must
submit a full set of fingerprints. This requirement comes with additional fees including a
live-scan fee.
, What is the contractors application processing fee? - ANSThe non refundable processing fee
of $300 + $75 for each additional classification.
What is the total amount of fees I must pay to obtain a contractors license? - ANS$480. This
amount includes the non refundable processing fee of $300 and two year initial license fee of
$180. Fees are subject to change. Current fees are printed on the application forms and
notices.
How often must I renew my active license? - ANSEvery 2 years. there is a fee for renewing
your license
Will I receive notice before my active license expires? - ANSYes, approximately 60 days
before the license expires the CSLB will send a renewal application.
What is the active license renewal fee? - ANSRenewal for an active license is $360.
What is the renewal fee for an active license that is not renewed in time? - ANS$540. This
includes the renewal fee of $36o+ the deliquent late fee of $180 (active license)
What is the inactive license renewal fee? - ANSRenewal fee for an inactive license is $180.
Inactive licenses must be renewed every 4 years.
What is the renewal fee for an inactive license that is not renewed in time? - ANS$270. This
includes the renewal fee of $180+ the deliquent late fee of $90 (Inactive license)
What is the minimum operating capital that you must have to qualify to be a contractor? -
ANS$2,500. Operating capital is defined as your current assets minus your current liabilities.
(C.A.-C.L.=O.C.)
You must notify the state of any changes within how many days? - ANS90 days. This
includes changes in business name or address, as well as changes in personnel and
business type.
Can I renew my current license if there have been changes in license structure? - ANSNo. If
there are changes in License structure you cannot renew your license, you have to apply for
a new one. Changes in license structure include: change in business entity, corporate
registration number and owner.
Can your license be re-issued? - ANSYes. If your license has been expired between 3-5
years it can be re-issued.
What is another term for the "qualifier"? - ANSThe qualifier is the Test taker a.k.a the person
to whom the license is going to be issued.
What is the qualifier called if he/she is an individual? - ANSWhen a license is issued to an
individual, the name often given to that qualifying individual is "owner".
Business Study Guide
Who must be licensed as a contractor? - ANSAll who construct or alter any residential or
commercial work that cost more than $500 (labor+material)
How old do you have to be to obtain a contractor license? - ANS18 years old
How many years of experience are required to obtain a contractors license - ANSAt least 4
years at a journeyman level.
Is anyone exempt from the requirements to be licensed? - ANSYes. 1)Representatives of
Federal, state, County, City, or other local governments. 2) Officers of a court acting within
the scope of their own business. 3) Owners or tenants engaged in petroleum or gas
operations. 4) Manufacturers of mobile homes. 5) Employees working for wages as their
sole compensation. 6) Property Owners who build or improve their own property.
Licenses are issued - ANSPer entity. Individual license, Partnership License, Joint Venture
License etc. Each count as an entity
Does California recognize contractor licenses issued by other states or countries? - ANSNo.
But it does have reciprocal agreements with some states that recognize the experience
qualification.
What happens if you contract without a license? - ANSMisdemeanor charge. Unlicensed
contractors face potential sentences of up to 6 months in jail and/or $500 fine, and potential
administrative fines of $200-$15,000 because it is illegal to contract without a contractor's
license.
Are there educational requirements to obtain a contractor license? - ANSNo. However, many
community colleges and private schools offer instruction in vocational education.
Can technical training substitute the required experience? - ANSYes. Education in the trade
or technical training and apprenticeship training can substitute the 4 years of experience
required as long as the applicant has a min. Of 1 year of practical experience.
Are there special requirements for contractors who work with asbestos? - ANSYes. Special
knowledge and training is needed. Certification, registration, reporting and safety
requirements are required by the DOSH, OSHA and C.S.L.B
Are all applicants submitted to a criminal background check? - ANSYes. All applicants must
submit a full set of fingerprints. This requirement comes with additional fees including a
live-scan fee.
, What is the contractors application processing fee? - ANSThe non refundable processing fee
of $300 + $75 for each additional classification.
What is the total amount of fees I must pay to obtain a contractors license? - ANS$480. This
amount includes the non refundable processing fee of $300 and two year initial license fee of
$180. Fees are subject to change. Current fees are printed on the application forms and
notices.
How often must I renew my active license? - ANSEvery 2 years. there is a fee for renewing
your license
Will I receive notice before my active license expires? - ANSYes, approximately 60 days
before the license expires the CSLB will send a renewal application.
What is the active license renewal fee? - ANSRenewal for an active license is $360.
What is the renewal fee for an active license that is not renewed in time? - ANS$540. This
includes the renewal fee of $36o+ the deliquent late fee of $180 (active license)
What is the inactive license renewal fee? - ANSRenewal fee for an inactive license is $180.
Inactive licenses must be renewed every 4 years.
What is the renewal fee for an inactive license that is not renewed in time? - ANS$270. This
includes the renewal fee of $180+ the deliquent late fee of $90 (Inactive license)
What is the minimum operating capital that you must have to qualify to be a contractor? -
ANS$2,500. Operating capital is defined as your current assets minus your current liabilities.
(C.A.-C.L.=O.C.)
You must notify the state of any changes within how many days? - ANS90 days. This
includes changes in business name or address, as well as changes in personnel and
business type.
Can I renew my current license if there have been changes in license structure? - ANSNo. If
there are changes in License structure you cannot renew your license, you have to apply for
a new one. Changes in license structure include: change in business entity, corporate
registration number and owner.
Can your license be re-issued? - ANSYes. If your license has been expired between 3-5
years it can be re-issued.
What is another term for the "qualifier"? - ANSThe qualifier is the Test taker a.k.a the person
to whom the license is going to be issued.
What is the qualifier called if he/she is an individual? - ANSWhen a license is issued to an
individual, the name often given to that qualifying individual is "owner".
