How to Become a Licensed Contractor in 2026
A licensed contractor bids and performs construction work legally above their state's dollar threshold. In California that's the CSLB license, which requires documented journey-level experience, passing a Law & Business exam plus a trade exam, and posting a bond.
Steps to become a licensed contractor
- 1Document your qualifying experience
Most states require several years of journey-level experience in the trade. California's CSLB, for example, requires four years of qualifying experience.
- 2Apply to your state contractor board
Submit your application, experience verification, and fingerprints/background check to your state's contractor licensing board.
- 3Pass the contractor exam(s)
Most states test business/law and the specific trade. In California you pass the CSLB Law & Business exam plus a trade exam.
- 4Post a bond and get insured
States require a contractor bond (California: a $25,000 bond) and, if you have employees, workers' compensation insurance.
Licensed Contractor salary
The BLS does not publish a single 'contractor' wage; construction managers ($106,980) are the closest official occupation. Many contractors are self-employed, so actual income is business profit that varies enormously by trade, region, and crew size. Requirements and pay vary by state and experience.
Source: U.S. Bureau of Labor Statistics (BLS) Occupational Outlook Handbook →The examyou'll need
PrepPass has free practice questions and a full timed mock exam for this exam — no signup required.
Contractor licensing is entirely state-level. The dollar threshold that triggers a license (California: $500), the experience requirement, exams, bond amount, and classifications all differ by state.
Always verify the current requirements with your state contractor licensing board (in California, the CSLB) before you start.
Frequently Asked Questions
Do you need a license to be a contractor?+
In most states, yes — above a dollar threshold. In California, any construction job of $500 or more (labor plus materials) legally requires a CSLB contractor license. Below that, unlicensed 'minor work' is allowed. Thresholds vary by state.
What does a contractor actually earn?+
The BLS has no single 'contractor' wage; the closest official occupation, construction managers, had a median of $106,980 in May 2024. Because many contractors are self-employed, real earnings are business profit that varies widely by trade and region.
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Salary figures are U.S. national medians from the BLS Occupational Outlook Handbook (May 2024). Last updated: July 2026