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A Class B licensee may take contracts for structures and can self-perform two or more unrelated subcontractor trades. Installing only an electrical panel or replacing water mains would require C-specialty licenses, and grading/paving is Class A work.

All licensed contractors must maintain a $25,000 Contractor License Bond filed with the CSLB. This bond protects consumers from contractor misconduct.

An RME may qualify only one license at a time. This differs from a Responsible Managing Officer (RMO), who is an owner and may be associated with multiple licenses in some circumstances.

Contractors must notify CSLB within 90 days when the qualifier leaves, is replaced, or the business structure changes. Failure to notify can result in license suspension.

Trusts cannot hold CSLB licenses. Eligible entities include sole proprietorships, partnerships (general and limited), corporations, and limited liability companies (LLCs).

CSLB requires the license number on contracts, bids, advertisements (including online), and vehicles. Internal business records like payroll are not public-facing documents requiring license display.

Any fictitious business name used by a contractor must be registered with the CSLB and listed on the license. Operating under an unregistered DBA is a violation.

After a formal disciplinary action, CSLB may require an additional $15,000 Disciplinary Bond. This bond provides extra consumer protection for contractors with a history of violations.

CSLB contractor licenses must be renewed every two years. Renewal notices are sent to the address on file, so contractors must keep contact information current.

Unlicensed contractors generally cannot enforce contracts or collect compensation in court. The minor-work exemption (§7048) applies to the total project cost, not just labor, and has strict conditions — the threshold was raised from $500 to $1,000 by AB 2622 (in effect for 2026).

A license expired for more than five years cannot be reinstated — the contractor must apply as a new applicant, which includes paying the application fee and potentially retaking exams.

Class A contractors focus on fixed works requiring engineering skills: highways, airports, dams, sewers, and other infrastructure projects. Residential buildings are primarily Class B work.

The prime contractor is responsible for verifying subcontractor licensure. Using an unlicensed subcontractor can result in disciplinary action against the prime contractor's license.

Adding a partner changes the business entity, requiring a new license application. The new entity (partnership) must qualify separately. The old sole proprietor license does not transfer.

Abandonment of a contract without legal excuse is grounds for license suspension or revocation. CSLB has broad disciplinary authority to protect consumers from this type of misconduct.

Class C licenses cover specialty trades, each limited to a specific craft. Plumbing is the C-36 specialty classification under §7058, separate from the general engineering and general building classes.

Under §7068, an RMO who owns 10 percent or more of the voting stock is generally not required to file a separate bond of qualifying individual. An RMO owning less than 10 percent must file that bond.

Under §7027.1, it is unlawful for an unlicensed person to advertise for construction work requiring a license. The violation occurs upon advertising itself, regardless of whether any work is performed.

Section §7048 exempts work where the aggregate contract price for labor and materials is less than $1,000 (raised from the old $500 by AB 2622, effective 2025, and re-enacted at $1,000 by AB 1170 for 2026). The threshold applies to the total job cost, not just the labor portion, and a larger job cannot be split to evade licensing.

Section §7030 requires a licensed contractor to include the license number in contracts, subcontracts, and bids. This allows consumers to verify the license status with the CSLB before agreeing to the work.

Under §7065, eligible entities include sole proprietorships, partnerships, corporations, and limited liability companies. Trusts and similar arrangements are not eligible to hold a contractor license.

Under §7124.6, citations are disclosed on the contractor's public license record for five years from the date the citation is resolved. This gives consumers access to a contractor's recent disciplinary history.

Under §7071.9, a bond of qualifying individual is required when the license is qualified by an RME or by an RMO who owns less than 10 percent of the voting stock. It supplements the standard contractor license bond.

Every contractor license must be continuously qualified by an individual who has met the experience and examination requirements under §7068. If the qualifier leaves, a qualified replacement must be associated with the license or it cannot remain active.

Under §7068.1, the qualifying individual is responsible for exercising direct supervision and control over the contractor's construction operations. A qualifier who acts in name only, without genuine supervisory involvement, violates the law.

Section §7031 allows a person who used an unlicensed contractor to recover, through disgorgement, all compensation paid for the work, even if the work was completed satisfactorily. Being unlicensed is a powerful penalty under California law.

Under §7057, a Class B contractor generally takes prime contracts requiring at least two unrelated trades. For a job involving only one specialty trade, the Class B contractor must hold that C classification or subcontract the work to a licensed specialty contractor.

Under §7083, any fictitious business name or DBA a contractor uses must be reported to and registered with the CSLB so it appears on the license. Using an unregistered business name on contracts and advertising violates the law.

An expired license does not authorize contracting. Although §7141 permits late renewal with a delinquent fee within the grace period, the contractor may not perform or bid on work requiring a license while the license is expired.

Under §7076, a contractor must notify the CSLB within 90 days of any change in personnel listed on the license, including the departure of a partner. The change in partnership membership affects the validity of the license.

Under §7068, an RMO is a responsible managing officer or owner of the licensed business, while an RME is a bona fide full-time employee who qualifies the license. An RME may qualify only one active license at a time.

Section §7030.5 requires the license number to appear in all forms of advertising, including websites and social media. Online advertising is treated the same as print and broadcast advertising for this requirement.

The §7071.6 contractor license bond provides a source of recovery for consumers, employees who are owed wages, and others harmed by a contractor's violation of the Contractors State License Law. It is not insurance for the contractor's own benefit.

Under §7075, a contractor license is not transferable between entities. A corporation is a distinct legal entity from the sole proprietor, so the business must apply for a new license in the corporate name.

Under §7056, a Class A General Engineering Contractor handles fixed works requiring specialized engineering knowledge, such as highways, interchanges, and drainage systems. A highway interchange is classic Class A work.

Under §7068.1 and related law, the prime contractor must verify subcontractor licensure. Using an unlicensed subcontractor can expose the prime contractor to discipline against its own license, regardless of work quality.

Under §7141.5, a license that has been expired for more than five years generally cannot be renewed. The contractor must apply as a new applicant and meet all current requirements, which may include retaking examinations.

Under §7124.6, the CSLB publicly discloses license status and citations for five years after they are resolved. Private financial details such as bank balances and tax returns are not part of the public license record.

Under §7027.1, an unlicensed person who advertises for construction work must limit advertising to jobs whose aggregate price is below the $1,000 minor-work threshold (§7027.2 tracks the §7048 figure, raised from $500 to $1,000) and must state in the advertisement that he or she is not licensed.

Under §7058, the CSLB issues more than 40 separate Class C specialty classifications, each covering a distinct trade such as electrical, plumbing, roofing, landscaping, or painting.