1. Pre-License Requirements
Before CSLB will issue your license, you must have the following bonds in place:
$25,000 Contractor's License Bond
- Who: All entities (required)
- Renewal: Continuous (premium billed yearly)
- Cost: Typically 1–3% of face value
$25,000 Bond of Qualifying Individual
- Who: Required if qualifier is an RME or owns less than 10% of the business
- Applies to: Sole Proprietors, Corporations, LLCs
- Renewal: Continuous
Your surety e-files the bond directly with CSLB—your broker arranges this for you. The bond follows the individual qualifier and protects the public when the person directing the work has little or no ownership stake.
2. Day-1 License Activation
Workers' Compensation
All contractors must file one of the following:
- Certificate of Insurance — carrier e-files directly to CSLB
- Exemption Form — if you have no employees
Note: Exemption is not allowed for C-8 (Concrete), C-20 (HVAC), C-22 (Asbestos), C-39 (Roofing), or C-61/D-49 (Tree Service) even if you work solo.
Additional LLC Requirements
LLCs have extra requirements beyond the standard contractor bond:
$100,000 LLC Employee/Benefit Bond
- Purpose: Covers wages and benefits
- Renewal: Continuous
General Liability Insurance
- Minimum: $1 million aggregate (for 5 or fewer personnel)
- Additional: +$100,000 per extra qualifier
- Maximum: $5 million
- Renewal: Annual
3. Annual & License-Renewal Duties
Keep these items current to maintain your license in good standing:
- Workers' Comp Policy — renew yearly; carrier must re-file certificate with CSLB
- Workers' Comp Exemption — re-sign every license renewal (two-year cycle)
- Bonds — continuous, but surety bills annually. Watch credit card expirations to prevent cancellation
- LLC Liability Policy — annual renewal; CSLB will suspend your license if evidence lapses
- General Liability (all contractors) — strongly recommended; if you don't carry GL, you must disclose this in 14-point bold on every home-improvement contract
- Commercial Auto — covers company vehicles and trailers; annual renewal (filed with DMV, not CSLB)
4. Job-Specific: Blanket Performance & Payment Bond
Running hundreds of kitchen remodels or solar installs? A blanket bond (Form 13B-35) covers every home-improvement contract under § 7159, allowing you to:
- Skip the $1,000 / 10% down-payment cap
- Use a simplified contract (no mechanics-lien warning required)
- Eliminate separate performance/payment bonds on each job
Bond limit equals 100% of all open contracts. SEC-filers may cap at $1–10 million. Blanket bonds require CPA-reviewed financials and re-certification every 24 months.