California State Contractors License Law and
Business Test Study Guide CORRECT 100%
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 purpose.
Does California recognize contractors licenses from other states or countries? - ANSWER No
What charge is it to contract without a license? - ANSWER Misdemeanor, meaning potential 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.
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 remember 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 Apply for a new one.
Can your old license be renewed? - ANSWER Yes. If your license has been expired between 3 to 5 years.
Another name for the qualifier. - 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? - 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 Managing Officer
What is the qualifier called if he or she is an employee? - ANSWER RME, Responsible Managing
Employee
Business Test Study Guide CORRECT 100%
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 purpose.
Does California recognize contractors licenses from other states or countries? - ANSWER No
What charge is it to contract without a license? - ANSWER Misdemeanor, meaning potential 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.
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 remember 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 Apply for a new one.
Can your old license be renewed? - ANSWER Yes. If your license has been expired between 3 to 5 years.
Another name for the qualifier. - 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? - 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 Managing Officer
What is the qualifier called if he or she is an employee? - ANSWER RME, Responsible Managing
Employee
