CALIFORNIA STATE CONTRACTORS
LICENSE LAW AND BUSINESS TEST
STUDY GUIDE 2025/2026 QUESTIONS
AND ANSWERS 100% PASS.
Who must be licensed as a contractor? - ANS 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. - ANS 18
What are the types of licenses issued. - ANS 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? - ANS No
What charge is it to contract without a license? - ANS Misdemeanor, meaning potential jail
time, fines and administrative fines
Are there educational requirements to obtain a contractors license? - ANS No
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Can technical training and apprenticeship training substitute the required training required for
the 4 years needed. - ANS 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? - ANS Yes
What are the total fees I must pay to obtain a contractor license? - ANS $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? - ANS every two years
Will I receive notice before my active license expires? - ANS Yes. 60 days, but remember it is
your responsibility to know and renew without being reminded.
What is the active license renewal fee? - ANS $360. You are required to renew every two
years.
Is there a fee for renewing an active license - ANS $180.
Inactive licenses must be renewed how often? - ANS Every four years
What is the minimum operating capital that you must have to qualify to be a contractor? -
ANS $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? - ANS 90 days
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, 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. - ANS Apply for a new
one.
Can your old license be renewed? - ANS Yes. If your license has been expired between 3 to 5
years.
Another name for the qualifier. - ANS 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? - ANS The owner
What is the qualifier called if he or she is a partner? - ANS Qualifying Partner.
What is the qualifier called if he or she is an officer? - ANS RMO, Responsible Managing
Officer
What is the qualifier called if he or she is an employee? - ANS RME, Responsible Managing
Employee
How many hours is an RME, Responsible Managing Employee required to work. - ANS 80% or
32 hours
How many licenses can an Owner or Qualifying Partner qualify for at a time. - ANS 3
How may licenses can an RME or RMO qualify for at a time? - ANS 1
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
LICENSE LAW AND BUSINESS TEST
STUDY GUIDE 2025/2026 QUESTIONS
AND ANSWERS 100% PASS.
Who must be licensed as a contractor? - ANS 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. - ANS 18
What are the types of licenses issued. - ANS 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? - ANS No
What charge is it to contract without a license? - ANS Misdemeanor, meaning potential jail
time, fines and administrative fines
Are there educational requirements to obtain a contractors license? - ANS No
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Can technical training and apprenticeship training substitute the required training required for
the 4 years needed. - ANS 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? - ANS Yes
What are the total fees I must pay to obtain a contractor license? - ANS $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? - ANS every two years
Will I receive notice before my active license expires? - ANS Yes. 60 days, but remember it is
your responsibility to know and renew without being reminded.
What is the active license renewal fee? - ANS $360. You are required to renew every two
years.
Is there a fee for renewing an active license - ANS $180.
Inactive licenses must be renewed how often? - ANS Every four years
What is the minimum operating capital that you must have to qualify to be a contractor? -
ANS $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? - ANS 90 days
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, 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. - ANS Apply for a new
one.
Can your old license be renewed? - ANS Yes. If your license has been expired between 3 to 5
years.
Another name for the qualifier. - ANS 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? - ANS The owner
What is the qualifier called if he or she is a partner? - ANS Qualifying Partner.
What is the qualifier called if he or she is an officer? - ANS RMO, Responsible Managing
Officer
What is the qualifier called if he or she is an employee? - ANS RME, Responsible Managing
Employee
How many hours is an RME, Responsible Managing Employee required to work. - ANS 80% or
32 hours
How many licenses can an Owner or Qualifying Partner qualify for at a time. - ANS 3
How may licenses can an RME or RMO qualify for at a time? - ANS 1
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
