California General Contractor License: Cost & CSLB Rules

In California, you need a license from the Contractors State License Board (CSLB) for any construction job of $1,000 or more in labor and materials, or any job that needs a building permit. To get one you need four years of journey-level experience in the last ten, must pass the Law & Business exam and a trade exam, and must file a $25,000 contractor bond. CSLB charges a $450 application fee plus a $200 initial license fee for a sole owner or $350 for a corporation, LLC, or partnership.

The fees below are from CSLB's list of all fees, which reflects Business and Professions Code section 7137. To estimate your total with bond and insurance, use the general contractor license cost calculator.

When you need a California contractor license

Under B&P section 7048, as amended by AB 2622 effective January 1, 2025, the "minor work" exemption covers a job only if all of these are true:

• The total price — labor, materials, and everything else — is under $1,000 (it was $500 before 2025)
• The work is casual, minor, or inconsequential and needs no building permit
• It isn't part of a larger project or split into smaller contracts to stay under the limit
• You don't advertise as a contractor (ads for jobs under $1,000 must say you're not licensed)
• You don't employ anyone to do or help with the work

Above that line, you need a license before you bid, advertise, or sign a contract — not just before you start work.

California contractor license fees

C-10 electrical licensees pay a $20 surcharge on renewal. Veterans get 50% off the initial license fee.

Fingerprinting: every officer, partner, owner, and qualifier submits fingerprints through Live Scan: $32 to the California DOJ and $17 to the FBI, plus a rolling fee set by the Live Scan site.

Exam fees: since January 1, 2025, exam fees are paid directly to the testing vendor, PSI, rather than to CSLB. Check the current amount when you schedule.

Choosing the right classification

CSLB issues licenses in three main categories (classification list):

• A — General Engineering: fixed works requiring engineering knowledge: roads, bridges, grading, pipelines, sewers.
• B — General Building: structures for shelter or movable property. A B contractor may take a prime contract only if it involves at least two unrelated trades other than framing or carpentry, unless the contractor holds the specialty license or subcontracts that trade (B&P 7057). Fire protection and well drilling always require the specialty license or a licensed sub.
• B-2 — Residential Remodeling: non-structural work on existing wood-frame homes involving three or more unrelated trades. No load-bearing changes and only minor electrical, plumbing, or mechanical work unless licensed for it or subcontracted.
• C — Specialty: 40-plus trades, from C-10 electrical and C-36 plumbing to C-39 roofing and C-33 painting.

Most people searching for a "general contractor license" want the B. If you mostly do kitchen and bath remodels without structural work, the B-2 may fit.

Experience requirements

You need at least four years of journey-level experience within the last ten years as a journeyman, foreman, supervising employee, contractor, or owner-builder. Owner-builder experience counts only toward the B classification. Someone who knows your work (an employer, client, or union rep) certifies it on the application.

Education and training can replace up to three of the four years, but at least one year must be practical experience (CSLB experience rules):

The exams

Most applicants take two computer-based, multiple-choice exams at PSI: Law & Business and the trade exam for the classification (CSLB exam FAQ). Each is scheduled for 3.5 hours. If you fail, you wait 21 days to retake, and you must pass within 18 months of CSLB accepting your application or the application voids.

You may qualify for a waiver under B&P 7065.1 if you've been listed personnel on an active license in the same classification for five of the last seven years, are continuing a family business, or are replacing the qualifier for the corporation or LLC that employs you. Reciprocity or a passing NASCLA exam score can waive the trade exam, but you'll still take Law & Business unless you passed it within the past five years.

Bonds and insurance

The $25,000 contractor bond amount took effect January 1, 2023 (it was $15,000). You don't pay $25,000 — you pay the surety an annual premium based on your credit. At a 2% premium, for example, the bond costs $500 a year. See how much a contractor bond costs for how premiums are set.

California doesn't require general liability insurance for sole owners or corporations, but most clients and general contractors will. General liability insurance for contractors covers what to buy.

Workers' compensation

As of October 2026 (CSLB workers' comp page):

• If you have employees, you must carry workers' compensation and keep a certificate on file with CSLB.
• C-8 (concrete), C-20 (HVAC), C-22 (asbestos abatement), C-39 (roofing), and D-49 (tree service) licensees must carry it even with no employees.
• Other licensees with no employees can file an exemption, except licenses qualified by a responsible managing employee.
• Under current law, every active licensee must carry workers' comp starting January 1, 2028, even with no employees. SB 216 originally set that date for 2026; SB 1455 pushed it to 2028, and CSLB is developing an exemption-verification process.

Worked example: what a new license costs

Sole owner applying for a B license, taking both exams:

LLC with three personnel of record: $450 + $350 + $49 per person fingerprinted + premiums on a $25,000 contractor bond and a $100,000 worker bond + the premium on a $1,000,000 liability policy. The LLC's bond and insurance premiums are usually the largest part of its startup cost — and the LLC also owes California's $800 minimum annual franchise tax.

Every two years after that, budget $450 (sole owner) or $700 (entity) for renewal plus the ongoing bond and insurance premiums.

How to apply, step by step

1. Pick your classification and confirm you have four years of qualifying experience.
2. Decide your business structure — sole owner, corporation, LLC, or partnership — because the license is issued to that legal entity.
3. File the Application for Original Contractor License with the $450 fee. CSLB's processing times page showed applications being worked about two to three weeks after receipt as of early October 2026.
4. Complete Live Scan fingerprinting for every person listed.
5. Schedule and pass the Law & Business and trade exams with PSI.
6. Submit the $25,000 bond, the initial license fee, and workers' comp proof or an exemption. LLCs also submit the worker bond and liability insurance.
7. Receive your license number and put it on your contracts, ads, and vehicles as the law requires.

Penalties for contracting without a license

• Criminal: a first conviction under B&P 7028 is a misdemeanor with up to a $5,000 fine and six months in jail. A second conviction carries a fine of the greater of $5,000 or 20% of the contract price and at least 90 days in jail.
• Civil penalties: CSLB citations for unlicensed activity range from $1,500 to $15,000 under B&P 7028.7.
• You can't collect, and you may have to give it back: under B&P 7031, an unlicensed contractor can't sue to be paid, and the customer can sue to recover everything already paid — even for work done well.

Related reading

For how California's costs compare with other states, see contractor license cost by state. For what the bond does and doesn't protect, read contractor bond vs insurance. And because California income tax applies to your contracting profit, the California income tax rates guide is worth a look once you're licensed and earning.