The contractor's license bond and the bond of qualifying individual are two separate bonds. When is the bond of qualifying individual required?
Explanation
B&P §7071.9 requires a $25,000 qualifying individual's bond, and excuses it where an RMO owns 10 percent or more of the corporation's voting stock, or the LLC's qualifier holds at least a 10 percent membership interest. (a) ignores that exemption, which is the whole content of the section. (b) swaps in the 20 percent figure, which belongs to §7068.1's common-ownership test for qualifying more than one firm. (d) is close enough to trap: an RME will in practice almost always need the bond, but the statute turns on the ownership percentage, not on the officer-versus-employee label.
Law Reference: B&P Code §7071.9This 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
- An applicant fails the trade or law portion of the licensing examination. What is the general consequence?
- An original contractor's license application generally becomes void if the applicant fails to complete requirements within what period after the application is accepted?
- A contractor licensed only as Class A General Engineering is asked to remodel the interior of an existing office (a general building project). What is the proper course?
- An RMO who owns 15 percent of the licensed corporation's voting stock qualifies its license. Is a bond of qualifying individual required?
- A licensee changes the business name style (for example, from 'ABC Builders' to 'ABC Construction Inc.'). What is generally required?
- A sole proprietor licensee incorporates the business. Can the new corporation keep operating under the sole proprietor's license number without action?
Last reviewed: · editorial process