California State Contractors License Law and Business Test Study
Guide
1. Who needs to hold a contractor's license?
- Answer: Anyone involved in construction or modification of a project costing $500 or more is
required to be licensed.
2. What is the minimum age to obtain a contractor’s license?
- Answer: 18 years old.
3. What types of contractor licenses are available?
- Answer: There are individual, partnership, corporation licenses, and joint venture licenses, which
combine two active licenses for a specific purpose.
4. Does California accept contractor licenses from other states or countries?
- Answer: No, California does not recognize licenses from outside the state.
5. What are the consequences of contracting without a license?
- Answer: It is classified as a misdemeanor, which can result in jail time, fines, and administrative
penalties.
6. Are there any educational prerequisites to apply for a contractor's license?
- Answer: No, there are no educational requirements.
7. Can practical experience from technical training or apprenticeships substitute for the required four
years of training?
- Answer: Yes, as long as the applicant possesses at least one year of practical experience.
8. Are all applicants subject to a background check?
- Answer: Yes.
,9. What are the total fees needed to obtain a contractor's license?
- Answer: The total is $480. This includes a non-refundable processing fee of $300 and an initial two-
year license fee of $180. Current fees are available on application forms and notices.
10. How frequently must a contractor renew their license?
- Answer: Every two years.
11. Will you be notified before your active license expires?
- Answer: Yes, you will receive a notice 60 days before expiration, but it is your responsibility to be
aware of and renew your license.
12. What is the fee for renewing an active contractor's license?
- Answer: The renewal fee is $360, required every two years.
13. How often must inactive licenses be renewed?
- Answer: Every four years.
14. What is the minimum operating capital required to qualify as a contractor?
- Answer: $2,500.
15. If you need to change your business name or address, or update personnel or business type, how
long do you have to notify the state?
- Answer: You must notify the state within 90 days.
16. If there is a change in ownership or business entity that alters the license structure, must you apply
for a new license or can you renew the existing one?
- Answer: You must apply for a new license.
17. Is it possible to renew an expired license?
- Answer: Yes, a license can be renewed if it has been expired for between 3 to 5 years.
, 18. What is another term for the license qualifier?
- Answer: The test-taker or the individual to whom the license is issued.
19. What is the title of the qualifier if they are the owner?
- Answer: The owner.
20. If the qualifier is a partner, how are they referred to?
- Answer: Qualifying Partner.
21. If the qualifier is an officer, what title do they hold?
- Answer: Responsible Managing Officer (RMO).
22. What title is given to a qualifier who is also an employee?
- Answer: Responsible Managing Employee (RME).
23. What is the minimum number of hours an RME must work?
- Answer: 80% of the workweek, or at least 32 hours.
24. How many licenses can an Owner or Qualifying Partner qualify for simultaneously?
- Answer: A maximum of three licenses.
25. What is the limit for how many licenses an RME or RMO can qualify for at one time?
- Answer: One license.
26. Is it legal to lend your contractor's license to someone else?
- Answer: No, lending your license is punishable by law.
27. Can a contractor abandon a project without a valid legal reason?
Guide
1. Who needs to hold a contractor's license?
- Answer: Anyone involved in construction or modification of a project costing $500 or more is
required to be licensed.
2. What is the minimum age to obtain a contractor’s license?
- Answer: 18 years old.
3. What types of contractor licenses are available?
- Answer: There are individual, partnership, corporation licenses, and joint venture licenses, which
combine two active licenses for a specific purpose.
4. Does California accept contractor licenses from other states or countries?
- Answer: No, California does not recognize licenses from outside the state.
5. What are the consequences of contracting without a license?
- Answer: It is classified as a misdemeanor, which can result in jail time, fines, and administrative
penalties.
6. Are there any educational prerequisites to apply for a contractor's license?
- Answer: No, there are no educational requirements.
7. Can practical experience from technical training or apprenticeships substitute for the required four
years of training?
- Answer: Yes, as long as the applicant possesses at least one year of practical experience.
8. Are all applicants subject to a background check?
- Answer: Yes.
,9. What are the total fees needed to obtain a contractor's license?
- Answer: The total is $480. This includes a non-refundable processing fee of $300 and an initial two-
year license fee of $180. Current fees are available on application forms and notices.
10. How frequently must a contractor renew their license?
- Answer: Every two years.
11. Will you be notified before your active license expires?
- Answer: Yes, you will receive a notice 60 days before expiration, but it is your responsibility to be
aware of and renew your license.
12. What is the fee for renewing an active contractor's license?
- Answer: The renewal fee is $360, required every two years.
13. How often must inactive licenses be renewed?
- Answer: Every four years.
14. What is the minimum operating capital required to qualify as a contractor?
- Answer: $2,500.
15. If you need to change your business name or address, or update personnel or business type, how
long do you have to notify the state?
- Answer: You must notify the state within 90 days.
16. If there is a change in ownership or business entity that alters the license structure, must you apply
for a new license or can you renew the existing one?
- Answer: You must apply for a new license.
17. Is it possible to renew an expired license?
- Answer: Yes, a license can be renewed if it has been expired for between 3 to 5 years.
, 18. What is another term for the license qualifier?
- Answer: The test-taker or the individual to whom the license is issued.
19. What is the title of the qualifier if they are the owner?
- Answer: The owner.
20. If the qualifier is a partner, how are they referred to?
- Answer: Qualifying Partner.
21. If the qualifier is an officer, what title do they hold?
- Answer: Responsible Managing Officer (RMO).
22. What title is given to a qualifier who is also an employee?
- Answer: Responsible Managing Employee (RME).
23. What is the minimum number of hours an RME must work?
- Answer: 80% of the workweek, or at least 32 hours.
24. How many licenses can an Owner or Qualifying Partner qualify for simultaneously?
- Answer: A maximum of three licenses.
25. What is the limit for how many licenses an RME or RMO can qualify for at one time?
- Answer: One license.
26. Is it legal to lend your contractor's license to someone else?
- Answer: No, lending your license is punishable by law.
27. Can a contractor abandon a project without a valid legal reason?
