Business & LicensingQuestion 446 of 690
An LLC applying for a CSLB contractor license must satisfy an additional financial requirement that does not apply to most other entities. That requirement is:
a.Maintaining a separate liability insurance policy specifically for an LLC
b.Depositing $1 million in cash with the CSLB
c.Hiring exactly five RMOs
d.Operating for at least ten years before applying
Explanation
A limited liability company seeking a contractor license must carry liability insurance specific to LLCs, in addition to the standard contractor license bond, and must also file an LLC employee/worker bond. This added requirement reflects the LLC's distinct liability structure.
Law Reference: Bus. & Prof. Code §7065Practice all 690 questions free — no signup required.
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