California Contractor License (CSLB): Steps and Fees

Everything on this page is California only. If you work in another state, start with our guide to license requirements by state. The numbers below come from CSLB’s own pages and its 2026 applicant workshop slides, opened on October 30, 2026. Fees change, so confirm them on CSLB’s fee page before you mail anything.

Who needs a California contractor license?

CSLB’s applicant workshop says a license is needed for construction projects priced at $1,000 or more, counting both labor and materials. It also spells out three limits on that rule:

• You can’t break a project into $999 pieces.
• You can’t charge an hourly rate to get around the law.
• The under-$1,000 exemption doesn’t apply to any work that requires a building permit, or if you employ anyone.

CSLB licenses businesses (sole owners, partnerships, corporations and LLCs), and each license needs a qualifying individual who shows the experience.

Which license classification fits your work?

CSLB issues an A (general engineering) license, a B (general building) license and many C specialty classifications, such as C-10 electrical, C-36 plumbing and C-39 roofing. The C-61 limited specialty classification covers narrower trades under D subcategories. CSLB publishes a description of each classification; pick the one that matches the work you actually do, and add classifications later if your work grows.

What do you need before you apply?

According to CSLB’s workshop slides, you must:

• be at least 18 years old;
• have a valid Social Security number or Individual Taxpayer Identification Number (ITIN); and
• have at least four years of experience within the last 10 years as a journeyperson, foreperson, supervising employee or contractor in the trade you’re applying for, or have a qualifier who does.

Education, technical training and apprenticeship can replace some of that experience with written proof, but CSLB says education can’t substitute for more than three years. CSLB reviews experience after you apply; it can’t pre-judge it. There are no educational requirements, and you don’t have to attend a license preparation school.

Which exams do you take?

CSLB says applicants must take and pass two examinations: law and business, and trade. The C-61 limited specialty classification doesn’t require a trade exam. Waivers are possible in some situations, for example if you served as a qualifier for the same classification within the past five years, and CSLB decides waivers during application review. CSLB posts free study guides and a short video on what to expect on test day.

After you pass, CSLB requires an open-book asbestos exam and a signed verification form before it can process your license.

How much does a California contractor license cost?

From CSLB’s fee list, checked October 30, 2026:

• Original application (exam or waiver, one classification): $450
• Initial license fee: $200 for a sole owner, $350 for a non-sole owner (partnership, corporation or LLC)
• Active timely renewal: $450 sole owner, $700 non-sole owner (C-10 electrical contractors pay $470 and $720)
• Fingerprinting: $32 Department of Justice and $17 FBI processing fees, plus a rolling fee set by each Live Scan site

The license is good for two years, and CSLB sends a renewal notice about 60 days before it expires. Your bond premium, insurance and any exam-prep materials are separate costs that vary.

What bond and insurance does CSLB require?

All licensees file a $25,000 contractor’s surety bond. Corporations and LLCs also need a $25,000 bond of qualifying individual in some cases. If your business is an LLC, CSLB adds two more requirements:

• a $100,000 LLC employee/worker bond, in addition to the $25,000 contractor bond; and
• liability insurance with a cumulative limit of at least $1 million for five or fewer people listed as personnel of record, plus $100,000 for each additional person, up to $5 million.

Those LLC costs are one reason some new contractors start as sole owners; see our LLC vs. sole proprietor guide and talk it over with a professional.

Do you need workers’ comp for a California license?

CSLB says California law requires employers, including those in construction, to carry workers’ compensation insurance even if they have only one employee. To keep an active license you either file a certificate of workers’ comp insurance (or self-insurance) or sign an exemption certifying that you have no employees.

Five classifications must carry workers’ comp whether or not they have employees: C-8 concrete, C-20 warm-air heating, ventilating and air-conditioning, C-22 asbestos abatement, C-39 roofing, and C-61/D-49 tree service. See our workers’ comp guide for how state rules work.

What else changes if you apply as an LLC?

Besides the extra bond and insurance, the LLC must be registered and in good standing with the California Secretary of State; CSLB warns that if an LLC license is suspended for not being in good standing, each person in the LLC may be held personally liable up to $1 million during the suspension. The California Franchise Tax Board says LLCs pay an $800 annual tax, plus a fee if the LLC makes more than $250,000. The IRS says to form the entity with the state before applying for an EIN; see our EIN guide.

What happens after you’re licensed?

CSLB’s workshop lists a few ongoing duties: renew on time every two years, and notify CSLB within 90 days if you move or make changes to your license. If you hire, you’ll also register with the Employment Development Department; see our first-employee guide.