The Contractors State License Board (CSLB) in California manages the licensing of contractors within the state. A critical aspect of this process involves understanding the various fees associated with obtaining and maintaining a contractor’s license.
In 2023, the CSLB has a specific fee structure that applicants and current licensees must be aware of. This guide aims to provide detailed insight into these fees, so contractors can be effective as they plan their future contracting endeavors.
Understanding CSLB Application Fees
What Is The CSLB?
The CSLB is a governmental organization responsible for the licensing and regulation of California’s construction industry by establishing and enforcing the rules around legal construction work.
The CSLB’s main priority is physical and financial safety for the end customer. They accomplish this via their licensing powers, which ensure that only construction contractors who have been verified and licensed by the state of California are allowed to work on construction jobs.
While the CSLB doesn’t technically enforce the rules it lays out – that’s for SWIFT, local authorities, and ultimately, the legal system to handle – it handles every other aspect of contractor laws in California, from setting the legal requirements to becoming a contractor to enshrining the financial and legal penalties for people who run afoul of the law.
Types of CSLB Fees
If you’re applying to become a contractor for the first time in California, buckle up – because the CSLB charges tons of fees. Some would say too many fees (not us, but somebody!).
The CSLB charges fees for everything – applications, renewals, name changes, exams, everything. If there’s any effort at all required by the CSLB, they will charge for it.
All that to say – when you’re applying for a contractor license, or renewing it, or doing anything, expect to spend a good wedge on just fees alone. In the next section, we’ll cover all of those fees in total.
CSLB License Application Fees
Initial Application Fee
- Fee: $450
- Description: This fee is for processing a new license application for one singular classification, whether by examination or waiver.
- Does not include renewals, which have a separate renewal fee. You aren’t charged twice for these. You are only charged an initial application fee for a new application.
Additional Classification Fee
- Fee: $230 (for existing license); $150 (for new applications)
- Description: This is the fee for adding an additional classification to an existing license or during the initial application.
- For example, if you’re a Class B General Contractor holder but want to do your own HVAC work, you’d have to pay this fee to apply for a C-20 license.
CSLB Examination Fees
In order to get your CSLB license, you must pass the CSLB examination. This exam is notoriously difficult for even the most seasoned construction workers, with two separate sections – the Law and Business exam and the Trade exam, which cover general business and law knowledge and trade-specific expertise, respectively.
Luckily, there are no additional fees for the exam – the cost of taking the CSLB exam is included in your application fee.
However, if you fail the exam and have to retake it, there is a $100 fee attached for any examination work.
CSLB Initial Licensing Fees
Initial licensing fees are only applied to new licenses and are only paid once by an individual or corporation for the specific classification they are applying for.
These fees vary and are based on the business structure of the applicant. See our article on Contractor Business Structures for more information.
Licensing Fee for Sole Ownership
- Fee: $200
- Description: This is the licensing fee paid by contractor businesses with a sole proprietorship ownership structure upon passing the examination.
- This fee is paid upon completion of the examination and is one of the last fees you need to pay to get your license.
Licensing Fee for Non-Sole Owners
- Fee: $350
- Description: Like the sole ownership fee, this fee is paid upon completion of your examination.
- This fee is paid upon completion of the examination and is one of the last fees you need to pay to get your license.
CSLB License Renewal Fees
Renewal fees, as the name implies, are the fees required to renew a license. All CSLB licenses must be renewed yearly, so these fees go for both expired licenses and valid licenses – it all depends on the status of your license.
Active License Renewal Fee
- Fee: $450 for sole owners, $700 for non-sole owners (C-10 contractors will be charged an additional $20)
- Description: For active license renewals, the fee varies slightly for different types of ownership. It’s $700 for corporations and partnerships, and $450 for sole proprietorships.
Inactive License Renewal Fee
- Fee: $300 for sole owners, $500 for non-sole owners
- Description: This fee is lower than active license renewals as it seeks to encourage lapsed license holders to become licensed again. Like the active license renewal fee, this fee is more expensive for partnerships and corporations.
Other Fees
Now that the main application and renewal fees are out of the way, it’s time to go further into the various piecemeal fees.
Home Improvement Salesperson Registration
- Fee: $200 for application, $200 for timely renewal, and $300 for delinquent renewal
- Description: This unique fee is applicable only to Home Improvement Salespeople (HIS). This is the only contractor’s license that doesn’t allow the owner to perform any real construction work. This license only allows you to sell services performed by others.
Background Check, Live Scan, and Fingerprinting Fees
- Dept. of Justice Processing Fee: $32
- Federal Bureau of Investigation Processing Fee: $17
- Live Scan Rolling Fees: Varies, but roughly $40
- Description: All applicants must go through a State and Federal background check. Involved in this process are fees charged by the DOJ and FBI. The Live Scan fee varies based on the location of the applicant, but it’s usually around $40. Check the Live Scan website for more details.
Delinquency Fee
- Fee: $675 for sole owners, $1,050 for non-sole owners (C-10 contractors will be charged an additional $20)
- Description: These exorbitant – in our opinion, excessive – fees are charged on renewals that are submitted after the license in question has expired. It’s basically a penalty for not renewing on time.
- It’s important to note that these fees are not charged on top of the renewal fee for the license, but rather replace them, so you don’t pay this in addition to the renewal fee.
Miscellaneous Fees
These are miscellaneous fees that may or may not apply to your situation and needs.
- Duplicate/Replacement Pocket/Wall Certificates: $25
- Business Name Change: $100
- Certified License History: $67 per name researched
- General Status Letter: $8
- Bond Status Letter: $8
- Copies of Public Documents: $0.10 per page
- Certified Copies of Public Documents: $2 plus $0.10 per page
Payment Methods and Processing
- Accepted Payment Methods
- CSLB accepts checks, money orders, and credit cards. Detailed payment methods can be found on the CSLB website.
Processing Time
- Processing times vary, especially during times of high volume. We always recommend submitting applications and renewals well in advance of deadlines to avoid any issues.
So… How Much Does It Cost To Get Your CSLB Contractor License?
So, how much can I expect to pay to get my CSLB contractor’s license?
The answer is – it varies. It all depends on what kind of license you need, the status of your license, whether it’s your first license or you’re renewing it, whether your license is expired, and so on.
There’s so many variables to getting your license, and every situation is different. However, here is the general total of the basic fees anyone needs to get their contractor license in California.
Total Estimated Cost of Fees for a New CSLB License
For a Sole Owner:
Application Fee: $450
Initial License Fee: $200
Fingerprinting (DOJ and FBI): $80
Total Fees For Sole Proprietors: $740
For a Corporation or Partnership (or any business structure that involves more than one person):
Application Fee: $450
Initial License Fee: $350
Fingerprinting (DOJ and FBI): $80 (excluding rolling fees)
Total Fees For Corporations Or Partnerships: $900
Conclusion
The most important skill for a California construction contractor is planning. You need to plan your life in advance – doing your apprenticeship work, gaining work experience in your trade, getting your license and ultimately building a successful business all require and understanding of your situation and the career you want.
Don’t overlook fees when planning your future as a CSLB-licensed contractor. These small amounts can really add up quickly – and if you don’t effectively plan not only the cost of these fees but the times that you pay them, you can end up spending far more money than you initially planned.