Who needs a contractor license in California?
Threshold: $1,000 (combined labor and materials, effective January 1, 2025 under AB 2622)
Any person or business that contracts to perform construction work worth $1,000 or more — including both labor and materials — must hold a valid CSLB license. The exemption for work below the threshold does not apply if the project requires a building permit, if you employ any workers to help, or if you advertise construction services without disclosing you are unlicensed.
| Code | License Type | Scope |
|---|---|---|
| A | General Engineering Contractor | Fixed works requiring specialized engineering knowledge: roads, bridges, tunnels, dams, pipelines, grading, drainage, airports, sewers, and other civil infrastructure projects. |
| B | General Building Contractor | Construction, alteration, or repair of any building or structure requiring a building permit. May self-perform multiple trades and coordinate subcontractors across a full project. |
| B-2 | Residential Remodeling Contractor | Improvements to existing residential wood-frame structures using at least three unrelated building trades or crafts in a single contract. Cannot install or substantially alter electrical, plumbing, or mechanical systems (subcontract required) and cannot take contracts involving only one or two trades. |
| C-10 | Electrical Contractor | Installation, alteration, or repair of electrical wiring, devices, appliances, and equipment in structures. |
| C-36 | Plumbing Contractor | Installation and repair of plumbing, drainage, gas piping, and related water systems. |
| C-39 | Roofing Contractor | Application of all types of roofing and waterproofing materials on structures. |
| C-20 | Warm-Air Heating, Ventilating and Air-Conditioning Contractor | Fabrication and installation of HVAC systems, warm-air heating and ventilation equipment. |
| C-27 | Landscaping Contractor | Grading, clearing, and all work related to the installation and maintenance of landscape systems, irrigation, planting, and drainage. |
Requirements for a California contractor license
| Requirement | Details |
|---|---|
| Experience | Applicants must document at least four years of journey-level (or higher) experience in the classification they are applying for, completed within the preceding ten years. Journey-level means you can perform the trade unsupervised. Apprentice and helper hours do not count. Up to three years may be substituted with an accredited apprenticeship certificate or qualifying degree, but at least one year must be hands-on field experience. |
| Exam | All applicants must pass two computer-based multiple-choice exams administered by PSI Exams: (1) the Law and Business exam, covering California contractor law, business management, and safety regulations; and (2) a trade-specific exam for the classification sought. Each exam is 3.5 hours. Fees are paid directly to PSI at $51.43 per exam ($102.86 for both). Applicants have 18 months from application acceptance to pass both exams; a 21-day waiting period applies between retakes. |
| Bond | Every contractor must maintain a $25,000 Contractor's License Bond continuously throughout the license period. This requirement increased from $15,000 to $25,000 on January 1, 2023 (Senate Bill 607). Partnerships and corporations using a Responsible Managing Employee (RME) as the qualifier must also post a separate $25,000 Bond of Qualifying Individual. LLCs must additionally carry a $100,000 Employee/Benefit Bond. Annual bond premiums typically range from $250 to $750 depending on credit. |
| Insurance | Contractors who employ any workers must maintain California workers' compensation insurance without interruption; a lapse triggers automatic license suspension. Sole proprietors with no employees may file an exemption, except those holding C-8 (Concrete), C-20 (HVAC), C-22 (Asbestos Abatement), C-39 (Roofing), or C-61/D-49 (Tree Service) classifications, which require coverage regardless of employee status. Beginning January 1, 2028, all contractors will be required to carry workers' compensation insurance. General liability insurance minimums are $1 million per occurrence / $2 million aggregate (for contractors with five or fewer personnel). |
How to apply for a California contractor license
- Verify eligibility and gather experience documentation
Confirm you have at least four years of journey-level experience in your target classification within the past ten years. Collect contact information for all employers, supervisors, or other verifying parties who will certify your experience on the CSLB application form. Gather supporting records such as tax forms, union records, or apprenticeship certificates.
- Choose your license classification
Select the classification(s) that match your trade experience: Class A (General Engineering), Class B (General Building), Class B-2 (Residential Remodeling), or one of the 40+ Class C specialty classifications. You may apply for multiple classifications, but each additional classification beyond the first requires a separate $230 fee and trade exam passage.
- Submit the license application and pay the application fee
Complete Form 13A-1 (Application for Contractor License) and submit it with a non-refundable $450 application fee. Applications can be submitted by mail to CSLB's Sacramento office. About half of all applications are initially returned due to errors in experience certifications — review carefully before submitting. CSLB will mail an acknowledgment letter with your application fee number and PIN within approximately four to six weeks.
- Schedule and pass both exams through PSI
Once CSLB accepts your application, you will receive a Notice to Schedule an Examination. Register directly with PSI Exams online or by phone (877-392-6422) to schedule the Law and Business exam and your trade exam. Fees are $51.43 per exam paid directly to PSI. You have 18 months from acceptance to pass both. You must wait 21 days before retaking a failed exam.
- Complete fingerprinting (Live Scan)
Submit fingerprints for a California Department of Justice and FBI background check through a Live Scan service. CSLB will typically prompt you during the application process. Background check delays can add weeks to processing times.
- Obtain your $25,000 contractor bond and insurance
After passing all required exams, CSLB sends a Bond and Fee letter. At that point, purchase a $25,000 Contractor's License Bond from a licensed California surety company and obtain required workers' compensation insurance (or file an exemption if eligible). Submit these documents along with the initial license fee to CSLB simultaneously to avoid additional delays.
- Pay the initial license fee and receive your license
Submit the initial license fee — $200 for sole proprietors or $350 for corporations, partnerships, or LLCs — along with proof of bond and insurance. CSLB will process the final documents and mail your license pocket card. As of May 2026, CSLB was processing final documents received approximately six to seven weeks prior, so expect this final step to take five to eight weeks.
Cost of getting a California contractor license
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| Item | Amount | Notes |
|---|---|---|
| Application fee (non-refundable) | $450 | Covers processing and review of application, including one classification exam or waiver |
| Exam fee — Law and Business | $51.43 | Paid directly to PSI Exams when scheduling; effective January 2025 |
| Exam fee — Trade-specific exam | $51.43 | Paid directly to PSI Exams when scheduling; $102.86 total for both exams |
| Initial license fee — Sole proprietor | $200 | Paid after passing exams, before license is issued |
| Initial license fee — Corporation, partnership, or LLC | $350 | Paid after passing exams, before license is issued |
| Contractor's License Bond (annual premium) | $250–$750/year | Bond face value is $25,000; annual premium varies by credit. Contractors with excellent credit may pay as little as $85/year |
| Active license renewal — Sole proprietor (timely) | $450/2 years | C-10 Electrical adds $20; licenses renew every two years |
| Active license renewal — Non-sole owner (timely) | $700/2 years | C-10 Electrical adds $20; delinquent renewal is $1,050 |
| Adding an additional classification | $230 | Per additional classification; requires passing that classification's trade exam |
How long does it take to get a California contractor license?
| Phase | Duration | Notes |
|---|---|---|
| Application preparation | 1–4 weeks | Gathering and verifying experience documentation; completing Form 13A-1 |
| Application review at CSLB | 4–6 weeks | CSLB processes in date-received order; returns ~50% of applications for errors, adding another 1–4 weeks |
| Exam scheduling and testing | 2–6 weeks | Depends on PSI appointment availability; study time varies by trade. Both exams can be taken the same day. |
| Background check processing | 2–8 weeks | DOJ/FBI fingerprint review; additional time if issues arise |
| Bond, insurance, and final fee submission | 1–2 weeks | Bond and insurance can be obtained quickly; submit all documents together |
| Final CSLB processing and license issuance | 5–8 weeks | As of May 2026, CSLB was processing final documents received ~6–7 weeks prior |
| Total typical timeline | 5–8 months | Applicants with clean backgrounds, complete documentation, and no exam retakes fall at the shorter end |
California contractor license exam
CSLB Contractor License Examination (Law and Business + Trade Exam)
Two separate computer-based exams, each consisting entirely of multiple-choice questions. Each exam is allotted 3.5 hours. The trade exam for most classifications includes questions referencing blueprints or technical drawings. Both exams are administered at PSI Exams testing centers throughout California.
Passing score: No fixed percentage is published. CSLB uses Angoff scoring methodology: subject-matter experts (licensed contractors and construction educators) rate each question to set a per-version passing standard. A rough benchmark of approximately 72% correct is commonly cited, but the actual threshold varies by exam version difficulty. Candidates see Pass/Fail at the test center; failing candidates receive section-by-section feedback.
Exam topics
- California contractor licensing law (Business and Professions Code, Chapter 9)
- CSLB regulations and enforcement procedures
- Contract requirements, home improvement contracts, and dispute resolution
- Business organization (sole proprietorships, partnerships, corporations, LLCs)
- Project bidding, cost estimating, and lien law
- Cal/OSHA safety regulations and jobsite safety requirements
- Workers' compensation, general liability, and surety bond requirements
- Employment law, payroll taxes, and worker classification
- Trade-specific knowledge, materials, methods, and codes (trade exam)
Frequently asked questions
How long does it take to get a California contractor's license?
The full process typically takes five to eight months from application submission to license issuance, assuming no application errors and no exam retakes. The biggest variables are how quickly CSLB reviews your application (four to six weeks), exam scheduling and study time (two to six weeks), and final document processing (five to eight weeks after passing exams).
Do I really need four years of experience to get a California contractor's license?
Yes. CSLB requires at least four years of journey-level (fully qualified, unsupervised) experience in your target classification within the past ten years. Helper, laborer, and apprentice hours do not count. You may substitute up to three years with an accredited apprenticeship certificate or qualifying degree, but at least one year of hands-on field work is always required.
What does the CSLB Law and Business exam cover?
The Law and Business exam covers California contractor licensing law, CSLB regulations, contract requirements, business organization (LLCs, corps, partnerships), lien law, Cal/OSHA safety rules, workers' compensation, general liability, bond requirements, payroll taxes, and worker classification. CSLB sends a study guide with your exam notice that lists specific topic weightings.
How much does it cost to get a California contractor's license?
Budget approximately $800–$1,100 for the core licensing costs: $450 non-refundable application fee, $102.86 for both PSI exams, and $200–$350 for the initial license fee (depending on business structure). Add annual bond premiums of $250–$750 and workers' compensation or general liability insurance costs on top of that.
Do I need a license to do small handyman jobs in California?
If the total project value — labor plus materials combined — is under $1,000, you can legally work without a license, provided the work does not require a building permit and you do not employ any helpers or workers. This threshold increased from $500 to $1,000 on January 1, 2025 under Assembly Bill 2622. Work behind walls (electrical, plumbing, structural) almost always requires a permit and therefore a license.
What is the passing score for the CSLB contractor exam?
CSLB does not publish a fixed passing percentage. It uses Angoff scoring, where the passing threshold is set per exam version based on its difficulty. A commonly cited benchmark is roughly 72% correct, but your actual required score may be slightly higher or lower. You will see a Pass or Fail result immediately at the PSI testing center.
Can I get a California contractor's license if I have a criminal record?
It depends on the nature and recency of the offense. CSLB conducts a DOJ and FBI fingerprint-based background check on all applicants. Certain convictions — particularly those related to fraud, theft, or crimes against consumers — may result in denial or additional review. CSLB evaluates each case individually; contact the CSLB Criminal Background Unit at cbu@cslb.ca.gov for guidance before applying.
Sources
Facts on this page were verified against the following primary sources on May 8, 2026. Licensing laws, fees, and bond amounts change — always confirm with the official board before acting.
- CSLB Fee Schedule — Source for application fee ($450), initial license fees ($200/$350), renewal fees, and additional classification fee ($230) (retrieved 2026-05-08)
- CSLB Experience Requirements for Examination — Source for 4-year journey-level experience requirement, educational substitution credits, and verification rules (retrieved 2026-05-08)
- CSLB Examination FAQ — Source for exam format (computer-based, multiple-choice, 3.5 hours each), PSI exam administration, Spanish-language availability (retrieved 2026-05-08)
- CSLB Workers' Compensation Requirements — Source for workers' comp insurance requirements, five classifications requiring coverage regardless of employees (C-8, C-20, C-22, C-39, C-61/D-49), and suspension rules (retrieved 2026-05-08)
- CSLB Licensing Classifications — Source for Class A, B, B-2, and C classification definitions and scopes of work (retrieved 2026-05-08)
- CSLB AB 2622 Press Release — New $1,000 Threshold — Source for $1,000 license threshold effective January 1, 2025 (raised from $500 by Assembly Bill 2622) (retrieved 2026-05-08)
- CSLB Industry Bulletin — Bond Increase to $25,000 — Source for $25,000 Contractor's License Bond requirement effective January 1, 2023 (increased from $15,000 via SB 607) (retrieved 2026-05-08)
- CSLB General Renewal Information — Source for renewal fee schedule, 2-year active / 4-year inactive renewal cycles, and delinquency rules (retrieved 2026-05-08)
- CSLB Before Applying for a License — Source for general eligibility overview and one-qualifier-per-license restriction (retrieved 2026-05-08)
- CSLB Processing Times — Source for current final-document processing lag (approximately 6–7 weeks as of May 2026) (retrieved 2026-05-08)