How do I register my business as a contractor in California?

California's Contractors State License Board requires a rigorous path to licensure. The process is designed to screen out unqualified contractors and maintain industry standards.

Qualifications required:

1. At least 18 years old.
2. Valid Social Security Number or Individual Taxpayer Identification.
3. At least 4 years of journeyman-level experience in the trade within the past 10 years.
4. No disqualifying criminal history (certain felonies can bar licensure).
5. Pass the Law and Trade Exams.
6. Provide a Contractor's Bond ($25,000 as of 2023).
7. Register a business entity or operate as sole proprietor.
8. Workers' comp coverage for any employees (or sole-proprietor exemption).

Step-by-step process:

1. Determine the license classification — A (general engineering), B (general building), B-2 (residential remodeling), or a C-specialty (C-10 electrical, C-36 plumbing, etc.). B-2 (created 2018) is the residential-focused class.

1. Apply for Original License (Form 7965) — file online at cslb.ca.gov with application fee ($450 as of 2026).

1. Experience verification — CSLB reviews claimed experience. Applicants must document 4 years of full-time journeyman-level work in the chosen classification.

4. Exams: - Law Exam — 100 multiple-choice questions on California contractor law. 75% required to pass. - Trade Exam — 100 questions on the specific classification's trade knowledge. 75% required to pass. - Exams scheduled after application approval. Both must be passed. - Retake policies: 18 months, up to 3 attempts per year.

1. Background check — fingerprints submitted through Live Scan. CSLB reviews criminal history.

6. Bonding and insurance — after passing exams, submit: - Contractor's Bond ($25,000) from authorized surety. - Workers' compensation certificate or sole-proprietor exemption. - Liability insurance certificate (required for all classes except those exempted).

1. Pay issuance fees — initial license fee ($200 as of 2026).

1. License issued — active license status; license number appears in CSLB public database.

Total timeline: 3-6 months typical.

Total cost breakdown (2026):

• Application fee: $450.
• Exam fee: $100 (if taken more than once, additional).
• Fingerprinting: $50-$75.
• Bond premium: $100-$500/year depending on credit.
• Liability insurance: $1,000-$5,000/year.
• Workers' comp: varies by payroll.
• Initial license fee: $200.
• Total first-year out-of-pocket: $2,000-$7,000 depending on insurance.

Ongoing requirements:

1. License renewal — every 2 years, $450 fee.
2. Bond renewal — annually.
3. Insurance maintenance — continuous.
4. CE (continuing education) — not required in California (some states require it).

Business entity considerations:

• Sole proprietor — simplest, no entity filing. All liability is personal.
• LLC — requires Secretary of State filing, $70 fee plus annual $800 minimum franchise tax. Limited liability protection.
• Corporation — most formal. S-corp election common for tax benefits.

Residential vs commercial:

• B-2 (residential remodeling) — focused on residential work. Doesn't allow commercial.
• B (general building) — broader; allows both residential and commercial.
• A (general engineering) — specialty; roads, bridges, infrastructure.

Operating under license:

• License must be posted at business location.
• License number must appear on all advertising, business cards, trucks.
• Written contracts over $500 required.
• Deposit cap of 10% or $1,000 (whichever less) on residential.

RMO / RME (Responsible Managing Officer / Employee):

• Corporations/LLCs must have a qualifying RMO or RME who personally meets qualifications.
• One person can only qualify for one entity at a time (with rare exceptions).
• RMO/RME must oversee the licensed contracting operations.

AskBaily's LA contractor pool includes B and B-2 licensed contractors with in-house RMO oversight. See /for-pros for how AskBaily supports new contractor businesses entering the California market.