Business & LicensingQuestion 1386 of 1605
Which business entity form is NOT among those permitted to hold a California contractor's license?
a.Sole proprietorship
b.Corporation
c.Limited liability company
d.An informal, unregistered arrangement with no recognized legal form
Explanation
Under the license law, a contractor's license may be issued to a sole proprietorship, partnership, corporation, limited liability company (LLC), or joint venture. An entity with no recognized legal form cannot hold a license.
Law Reference: B&P Code §7025Practice all 1605 questions free — no signup required.
Related questions on this topic
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- California authorizes limited liability companies (LLCs) to hold contractor's licenses. What special financial security must a licensed LLC carry in addition to the standard bond?
- A licensed LLC contractor must carry liability insurance in an aggregate amount that increases with the number of persons employed. What is the minimum aggregate coverage floor?
- A partnership holds a contractor's license and one partner dies. What generally happens to the license?
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Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)