Business & LicensingQuestion 1386 of 1632

Which business entity form is NOT among those permitted to hold a California contractor's license?

a.A sole proprietorship operating under a fictitious business name
b.A corporation registered with the California Secretary of State
c.A limited liability company that carries the required bonds
d.A loose association of tradespeople with no legal form

Explanation

A contractor's license may be issued to a sole proprietor, a partnership, a corporation, a limited liability company, or a joint venture — every form on this list except an unregistered association, which has no legal existence to hold a license or to be bound by the license law. (a) is licensable: a sole proprietor may use a DBA, subject to the §7059.1 name rules. (b) is the ordinary corporate license under §7065. (c) is licensable since 2012, though an LLC additionally needs the §7071.6.5 $100,000 worker bond and §7071.19 liability insurance.

Law Reference: B&P Code §7065 / §7075.1

This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →

Practice all 1632 questions free — no signup required.

Own the complete CSLB Law & Business guide — PDF + EPUB, $24.99 →

Related questions on this topic

Last reviewed: · editorial process

PrepPass team · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)
Report