How to Get a California Contractor License
The Contractors State License Board (CSLB) licenses all contractors in California. As of January 1, 2025, a license is required for any project valued at $1,000 or more in combined labor and materials. The threshold was previously $500.
The process typically takes 6 to 9 months from application to license issuance. Here is what it involves.
Step 1: Choose Your Classification
The CSLB issues licenses in 45 classifications across four categories: General Engineering (A), General Building (B and B-2), Specialty (C codes), and Limited Specialty (D codes under C-61). Your classification determines the scope of work you can legally perform.
If you are unsure which classification fits your trade, see our classification directory for descriptions of each license type and what it covers.
Step 2: Meet the Experience Requirement
The CSLB requires a minimum of four years of journeyman-level experience in the trade within the last ten years. Relevant education can substitute for up to three years of experience, so the minimum with qualifying education is one year of hands-on work.
Experience must be verified by a supervisor, licensed contractor, or other qualified person using the CSLB Certification of Work Experience form. Each certifier must sign confirming the duties you performed. Collect these early. Tracking down former supervisors takes time.
Step 3: Choose a Business Entity
Your contractor license is issued to a business entity, not to you personally. You need to decide on a structure before applying. The most common options are sole proprietorship, LLC, or corporation.
Sole proprietorships are simplest but offer no personal liability protection. An LLC separates personal and business assets. Corporations provide similar protection with a more formal structure. See our business entity guide for a detailed comparison.
Starting a Contracting Business?
Most California contractors operate as an LLC or sole proprietorship with a DBA. Form your business entity before applying for your CSLB license.
Step 4: Submit the CSLB Application
The Application for Original Contractor License can be submitted online or by mail. The application fee is $450. Include your completed Certification of Work Experience forms and fingerprinting receipt.
Fingerprinting uses the Live Scan system and costs approximately $49 to $59. Both the California Department of Justice and the FBI review the results. A criminal record does not automatically disqualify you, but failure to disclose it can.
CSLB processing time is typically 4 to 6 weeks. Applications with errors or missing information are returned, which adds weeks. Double check everything before submitting.
Step 5: Pass the Exams
The CSLB requires two exams, administered by PSI:
- Law and Business exam — 115 questions, 3.5 hours. Covers California construction law, contracts, safety regulations, employment law, liens, and financial management.
- Trade exam — 100 questions, 3.5 hours. Tests technical knowledge specific to your license classification.
The pass rate without preparation is roughly 50%. Exam prep courses raise that significantly. Use the 4 to 6 weeks of CSLB application processing time to study.
Step 6: Post-Exam Requirements
After passing both exams, the CSLB sends a bond and fee letter. You will need to submit:
- Contractor bond — $25,000 minimum. The bond premium (what you pay annually) typically runs $100 to $500 depending on your credit. See our bond requirements guide for details.
- Initial license fee — $200 for sole owners, $350 for corporations and LLCs.
- Workers’ compensation insurance — required if you have employees. If you have no employees, you may file an exemption, though certain classifications (C-8, C-20, C-22, C-39, C-61/D-49) cannot file an exemption.
- Asbestos awareness exam — an open-book exam required for all new applicants regardless of classification.
Need a Contractor License Bond?
California contractors must carry a $25,000 license bond. Get a quote and file directly with the CSLB.
Total Costs
Expect to spend roughly $700 to $1,500 in fees from application through license issuance:
- Application fee: $450
- Fingerprinting: $49 to $59
- Initial license fee: $200 (sole owner) or $350 (non-sole owner)
- Contractor bond premium: $100 to $500 per year
- Exam prep courses (optional): $300 to $800
LLCs have an additional $100,000 employee/worker bond requirement and must also file with the California Secretary of State.
Need Workers' Comp or Liability Insurance?
Workers' comp is required for California contractors with employees. General liability is not required by the CSLB but most clients expect it. Get both quoted online in minutes.
Get a Workers' Comp Quote → Via Ergo Next Insurance
Timeline Summary
- Gather experience documentation: 1 to 4 weeks
- CSLB application processing: 4 to 6 weeks
- Exam preparation and scheduling: 4 to 12 weeks
- Post-exam bonding and issuance: 2 to 4 weeks
Total: roughly 3 to 6 months if everything goes smoothly. Incomplete applications or failed exams extend the timeline.
For official forms and the most current fee schedule, visit the CSLB applicant page.