California State Contractors License
Law and Business Test Study Guide
Exam Questions and Answers
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.
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
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
How many hours is an RME, Responsible Managing Employee required to work. -
ANSWER-80% or 32 hours
How many licenses can an Owner or Qualifying Partner qualify for at a time. -
ANSWER-3
How may licenses can an RME or RMO qualify for at a time? - ANSWER-1
Can you lend your license to someone? - ANSWER-No. That would be punishable by
law.
Can you abandon a project without a legal excuse? - ANSWER-No. This would be
cause for disciplinary action. It is classified as "Breach of Contract".
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. - ANSWER-Incidental and supplemental to the primary job.
Otherwise it must be performed by a sub.
Law and Business Test Study Guide
Exam Questions and Answers
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.
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
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
How many hours is an RME, Responsible Managing Employee required to work. -
ANSWER-80% or 32 hours
How many licenses can an Owner or Qualifying Partner qualify for at a time. -
ANSWER-3
How may licenses can an RME or RMO qualify for at a time? - ANSWER-1
Can you lend your license to someone? - ANSWER-No. That would be punishable by
law.
Can you abandon a project without a legal excuse? - ANSWER-No. This would be
cause for disciplinary action. It is classified as "Breach of Contract".
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. - ANSWER-Incidental and supplemental to the primary job.
Otherwise it must be performed by a sub.
