Category Archives: Construction

New Laws for California Contractors in 2023

We’re always hearing stories from former clients and current contractors that they’re seeing frequent violations of new contractor laws that just came into effect this year, in 2023.

There are a ton of new laws that are – to be frank – absolutely critical to know as a contractor, no matter your classification, location, or size. Any violation of these new laws carries serious penalties – including time in jail for repeat offenders.

Arm yourself with the knowledge and take the steps necessary to protect your business by becoming familiar with the following pieces of new legislation.

Senate Bill 216 (Dodd)

If you’re a concrete, HVAC, Asbestos or Tree Service contractor in California – listen up!

Senate Bill 216 (SB216), which amends the Business and Professions Code (BPC) Section 7125, is a piece of legislation that requires 5 Class “C” contractors to carry workers’ compensation insurance, even without employees.

This mandate means that contractors with a C-8 Concrete, C-20 Heating, Warm-Air Ventilating and Air-Conditioning, C-22 Asbestos Abatement, or D-49 Tree Service license must have valid workers’ compensation insurance by January 1, 2023.

And as a note to all contractors of all classifications: by January 1, 2026, all contractors must have valid workers’ compensation insurance, irrespective of whether or not they have employees.

The only exception to the new CSLB workers’ comp requirements is joint ventures without employees. Anyone with this structure of business is exempt from SB 216’s workers’ comp requirements.

Senate Bill 607 (Min)

In another insurance-related move, the California Senate passed Bill 607 (SB 607), which marks another important change in the requirements to hold a CSLB license. It updates numerous sections of the BPC – with one huge change in bond amounts.

SB 607 mandates that the CSLB qualifier, license, and minimum disciplinary bonds be raised from $12,500 and $15,000, respectively, to $25,000 for all three bonds as of January 1, 2023.

As a bonus for the families of military members looking to become licensed contractors, SB 216 also requires the Department of Consumer Affairs (DCA) boards and bureaus (including the CSLB) to waive application and license fees for military family members.

What if I Don’t Have Workers’ Compensation Insurance Or My Bond Amount Is Insufficient?

If you are currently in one of the above classifications and you do not have workers’ comp or a sufficient bond amount…well, we’ve got bad news for you: your license is surely suspended.

Don’t panic – just stop doing work entirely if you are still doing it. This is critical as you can face serious legal consequences for working without a license.

Next, you should immediately begin the process of getting the necessary workers’ compensation insurance and/or increasing your bond amount. Once that is sorted out, you can re-apply for your license.

If you’re unsure or don’t remember if you have workers’ compensation insurance, you should immediately check your license status.

Senate Bill 1237 (Newman)

Huzzah for troops-turned-contractors – SB 1237 is here to waive any renewal fees!

Senate Bill 1237 (SB 1237) updates the current law that requires DCA boards, including the CSLB, to waive renewal fees for a licensee who is called to active duty as a member of the U.S. Armed Forces or California National Guard.

This applies if the licensee or registrant is stationed outside of California. The new law expands the definition of “called to active duty” and extends it to licensees on active duty during a “state of insurrection” or a “state of extreme emergency.”

Assembly Bill 2105 (Smith)

In another move that will have veteran contractors excited, Assembly Bill 2105 (AB 2105) mandates a 50% fee reduction for an initial license or registration fee for all veterans!

All you have to do is provide paperwork proving you are a veteran who has served as an active-duty member of the United States Armed Forces, including the National Guard or Reserve components and was not dishonorably discharged.

For HIS contractors, this still applies to you as well! This applies to all initial license fees for anyone acquiring a CSLB license.

Assembly Bill 1747 (Quirk)

Assembly Bill 1747 (AB 1747) increases the civil penalty from $8,000 to $30,000 for every violation of BPC Section 7110 (savvy legal contractors will know these are building code violations) and amends Section 7099.2 (how much in penalties violators will pay).

This bill expands BPC 7110 to include failure to comply with certain health and safety laws, water laws, safe excavation requirements, pest control requirements, illegal dumping, and other state laws related to building and insurance requirements.

Assembly Bill 2374 (Bauer-Kahan)

Bad news for litterbug contractors: your time is up.

Assembly Bill 2374 (AB 2374) amends Penal Code Section 374.3 and now requires courts to notify CSLB or other DCA boards or bureaus when a licensee is convicted of an illegal dumping crime. This is so the board can publish the conviction on their website.

The bill also increases the fines a court may impose for this crime, which is great for everyone everywhere. In a double-swoop of awesome for contractors who like to do the entire job right, it also requires the court to order a person convicted of dumping commercial quantities of waste to remove or pay for the removal of, the waste matter that was illegally dumped. Which, again, is an absolute win for everyone involved.

Assembly Bill 2916 (McCarty)

Assembly Bill 2916 (AB 2916) amends BPC Section 7124.6 and modifies the CSLB Letter of Admonishment (LOA) program to allow CSLB to determine whether it should be issued for one or two years, rather than the current one-year limitation.

In making that determination, CSLB is required to consider the gravity of the violation, the good faith of the licensee or applicant being charged, and the history of previous violations.

This is a pretty technical bill and to be honest, it remains to be seen how it will affect contractors. It seems to really only affect disciplinary actions, which affect only a small number of contractors. We’ll keep you posted on how it develops.

Stay Compliant…Or Else!

These new laws have serious consequences for any contractor that is non-compliant and remember: Ignorantia juris non excusat – ignorance of the law does not mean you are free from the consequences of violating it.

And in the CSLB’s case – the punishments are extremely severe for anyone violating contractor law in California. So don’t do it!

Save Money On Your Taxes As A California Contractor

As a licensed contractor, you’ve got enough on your plate with high-pressure deadlines and constantly shifting targets to hit. The last thing you need is to be buried under a mountain of tax paperwork, trying to make heads or tails of any of it!

With so many moving parts and costs, it can feel impossible to navigate the complicated labyrinth that is the US and California tax codes.

With these simple tips, however, you can easily and quickly make sure you’re maximizing your tax savings.

How Do You Structure Your Business?

Before diving into tax requirements, it’s crucial to understand how your business structure influences your tax obligations.

You probably already know this information, but it’s important to restate it here so that we have a good starting point.

  1. Sole Proprietorship: As a sole proprietor, you’ll report business income on your personal tax return. Keep track of expenses and income throughout the year so you can report them when tax day comes. Many, if not most contractors, are sole proprietors.
  2. Partnership: Income and losses are passed through to individual partners. Partners report their share on personal tax returns. Rarely are contractors partnerships, but in cases where it is a family business, you may see it.
  3. LLC: Limited liability companies offer flexibility, allowing owners to choose their tax classification (e.g., sole proprietorship, partnership, or corporation). The second-most common form of business structure for contractors.
  4. Corporation: Let’s be honest, if you’re a big enough construction company that you need corporation status to maximize your tax benefits, you either already know how to best file your taxes, or you have an accountant who handles your voluminous balance sheet.

Choose a structure that best suits your business needs and tax goals. Most construction professionals, as previously mentioned, will find sole proprietorships to be more than enough to fulfill their tax needs and will find the most savings there. But the more you grow, the more you’ll need the protection of LLCs and partnerships or corporations.

Know Your Taxes: Federal, State, and Local

Federal Taxes

There’s no escaping Uncle Sam. Always pay your taxes in full – you do not want the IRS sniffing around your business, causing trouble, when you could just take care of it ahead of time by educating yourself and planning effectively.

  • Income Tax: All businesses must file an annual income tax return. Tax rates and filing requirements depend on your business structure.
  • Self-Employment Tax: Self-employed contractors who operate as sole proprietors have to pay self-employment tax, which covers Social Security and Medicare taxes.
  • Estimated Tax: Again, if you are a sole proprietor (working as a 1099 employee), you may need to make quarterly estimated tax payments if you expect to owe tax of $1,000 or more when filing your return.
      • You don’t have to make these payments, but they will lower your tax burden at the end of the year.

State Taxes

It’s no mistake – California has high taxes. Make sure you’re keeping enough cash on hand to pay when April comes around; or, if you’ve got the right tax plan, get ready to get a rebate.

Either way, you can prepare yourself to file your state taxes as a California contractor by checking out the Franchise Tax Board’s website.

  • State Income Tax: If you’re doing business in California, you have to pay an income tax. You can find how much you expect to pay based on your revenue. Here is the Franchise Tax Board’s tax bracket.
  • Sales Tax: California has a sales tax, so you’ll be paying tax on things like materials and payments to any subcontractors or yourself.
  • Employment Taxes: If you have employees, you may need to withhold state income tax and pay state unemployment tax.

Local Taxes

Local tax requirements depend on where in California you’re operating. These local taxes can come in many forms, like business licenses or filing fees. Be prepared to pay local taxes when starting a new construction.

Employment Taxes: A Responsibility You Can’t Ignore

If you have employees, you must withhold and pay employment taxes. These include:

  • Federal Income Tax Withholding: Based on the employee’s Form W-4 and their earnings. This will fluctuate based on the number and types of employees you have. You are exempt from paying taxes for contract workers who file Form 1099.
  • Social Security and Medicare Taxes: Employers and employees share responsibility for Social Security and Medicare taxes.
  • Federal Unemployment (FUTA) Tax: Every employer must pay FUTA tax, which provides unemployment compensation to workers who lose their jobs.
  • State Unemployment Tax: You must also pay into California’s unemployment fund if you have full-time employees. This will also be a variable cost for your business as you grow.

Tax Deductions: Your Best Friend

If you’re a contractor, you probably can save tons of money by taking advantage of various tax deductions that are favorable to construction professionals – people who are constantly spending money on their business in order to survive.

We recommend researching these common deductions for a full scoop, but hiring a tax pro who has the expertise to successfully navigate the various deductions you qualify for is even better.

Common Deductions for Contractors

  • Home Office Deduction: If you use part of your home exclusively for business purposes, you may qualify for the home office deduction.
  • Vehicle Expenses: Deduct business-related vehicle expenses such as mileage, fuel, maintenance, and insurance.
  • Tools and Equipment: Contractors can often deduct the cost of tools, equipment, and supplies used in the course of business.
  • Contract Labor: Payments made to subcontractors are generally tax-deductible if they meet specific criteria.
  • Insurance: Business insurance premiums, such as general liability or workers’ compensation, can be deductible.
  • Training and Education: Expenses related to improving your professional skills may be tax-deductible.
  • Advertising and Marketing: You can deduct advertising expenses, including website development, business cards, and online advertising.

Hire an Accountant For Your Contracting Business

As we have said multiple times in this article: Hire. An. Accountant.

If you’re doing business in California as a contractor, we can’t recommend hiring an accountant. Simply put, an accountant will save you tons of time, energy, and money when it comes to filing your taxes – as well as being more likely to keep you from being audited.

The reality is that American taxes can be extremely confusing, so employing the skill of a professional accountant can help big time when it comes to saving the most money (and saving you the energy of having to understand the un-understandable).

You can even hire an accountant who specializes in California contracting taxes – saving you more money than ever before.

Taxes Can Actually Save You Money

Everyone has to pay taxes (well, mostly everyone). But by understanding and executing an effective tax plan for your contracting business, you can actually find yourself with more money in your pocket come tax time next year.

One thing we definitely can’t emphasize enough as you continue to grow your contracting business – hiring a qualified accountant or tax professional service is a critical element of maximizing your tax deductions and saving money every year.

How To Get A Contractors License In California

Let’s skip all the usual stuff and get right to the point: you’re a contractor in California, and you need a Contractors State License Board contractors license.

Here’s how you do it.

The Journey to Obtaining a Contractor’s License in California

Meet The Requirements

Before you can even apply for a CSLB license, you must meet the requirements laid out by the CSLB. They are as follows:

  1. You must be at least 18 years old and provide valid proof of identity.
  2. You need a minimum of 4 years of journey-level experience within the past ten years in the trade you’re seeking a license for. This experience can be as a worker or a supervisor.
  3. You need to pass a fingerprint-based background check. (This test will check for any past criminal behavior as well as any other contractor-related issues).

Take The Exam

Once you’ve met the initial requirements, it’s time to prepare and pass the exams. Both exams California requires you to pass two written tests:

  1. Contractor’s Law and Business Examination: This exam covers California’s contracting laws, business management, and safety regulations. This test is designed to ensure that you understand the legal and administrative aspects of running a contracting business. Brutal stuff if you’re not familiar with these laws.
  2. Trade Examination: This test is specific to your trade, i.e., a plumber’s trade exam will cover plumbing. This part of the test assesses your technical knowledge and skills, ensuring that you’re ready to provide top-notch services to your clients.

Get Insured and Get Your License!

After you’ve passed your exams, there are just a few more steps to complete:

  1. Fee Payment: You’ll need to pay an initial licensing fee, as well as other potential fees based on your classification.
  2. Contractor’s Bond: You’re required to secure a contractor’s license bond. This bond, set at $25,000, is a form of protection for your clients, ensuring that you’ll fulfill your contractual obligations.
  3. Insurance: If you have employees, you’ll need to provide proof of workers’ compensation insurance. This insurance protects your workers in case they get injured on the job. You’ll also need to provide general liability insurance as well.
  4. Get Your License! Once all these steps are complete, the state will issue your contractor’s license.

That’s it!

While the process to get your license is fairly straightforward, it can be really difficult to understand for first-timers.

If you’re struggling to make heads or tails of all the paperwork – or if you need help passing the CSLB exam – contact us today and we can help you make sense of anything that you don’t understand.

Additional Reading

Contractors State License Board (CSLB)
CSLB Applicant Resources
The Top Mistakes to Avoid When Applying for a Contractor License in California
CSLB Contractor License Exams and Study Guides en Español
How Long Does it Take to Get a Contractor’s License in California?
Do I Need a Class C Contractor’s License?

What Is A Journeyman And How Is It Related To My CSLB License?

Just moved to California as a contractor and need your CSLB license – as any contractor does – to start doing construction work in the State?

Or maybe you’re a fresh-faced 18-year-old, who sees a career in construction in the future, and you are looking for the path to making that a reality.

In any case, no matter what type of construction work you want to do in California, you need a CSLB license – and in order to get a CSLB license, you need to first become a journeyman.

But what is a journeyman? And how does it play into getting your CSLB contractor’s license? In this article, we’ll walk you through everything and anything related to being a construction journeyman.

Journeymen and Journey-level Experience

The CSLB defines a journeyman as anyone who has “journey-level experience”, which is anyone who “has completed an apprenticeship program or is an experienced worker, not a trainee, and is fully qualified and able to perform a specific trade without supervision.”

Unlike a novice or a trainee, a journeyman is fully qualified and capable of performing their trade without supervision. They are experienced, skilled construction workers who have specialty expertise in their area of operation – whether it’s a hands-on trade like plumbing or the more general practice of general contracting.

Despite the ability of a journeyman to essentially perform all of the jobs of a licensed contractor, a journeyman cannot do contracting work on their own – only under the supervision of a general contractor. That means that even if you have all the skills to perform construction work on jobs over $500, you still cannot do it. 

If journeymen are found doing contracting work, they are treated just like any other unlicensed contractor in the eyes of the law – facing all the same penalties, despite their skill and experience.

Do not do work on your own as a journeyman – wait until you’re a licensed contractor. You’re already on the path to becoming a licensed contractor, so why ruin it by breaking the law?

The Journeyman’s Experience Requirement

One of the essential requirements to obtain a CSLB contractor’s license is the journey-level experience requirement. This requirement means that you must have at least four (4) years of journey-level experience in your area of expertise. 

You must have four years’ journey-level experience in your trade. If you’re a plumber applying for a C-36 Plumbing license, you need four years’ journeyman experience as a plumber. You can’t, for example, do 4 years of general contracting work, and then expect to get an HVAC contractor’s license.

Exceptions From The CSLB Journey-level Experience Requirement

As always with the CSLB, there’s always exceptions to the rule. There are many situations where one may be exempt from the classical definition of “journey-level experience”.

Some situations where you can apply for an exception from the journey-level experience requirement include:

    • Education/Apprenticeship
      • The CSLB does allow anyone to apply for an exemption to the journeyman requirement by substituting four (4) years of technical training or apprenticeship training
      • Note – you must have at least one (1) year of practical experience.
    • Builder-Owner
      • In some situations, you can be exempt from the journey-level experience requirement if you built your own home. This is taken by the CSLB on a case-by-case basis.
  • Reciprocity
    • The CSLB has reciprocity agreements with a number of states – and if you’re a licensed contractor in these states, you can be exempt from having to start over again as a journeyman.

The Path To Becoming A Journeyman

Don’t have your journey-level experience but need some to get your contractor’s license? How do you even get your journeyman experience in the first place? 

An easy way to do it is to reach out to local contractors in your area and see if they’ll offer you an apprenticeship or work experience program in the area you’re interested in. You may not be making a ton of money, if you’re making money at all, but think of it long term – you are building your knowledge base and your abilities so that you can start bringing in the big bucks for the rest of your life.

By working under a licensed contractor, you can not only learn the ropes but also perform the work you will ultimately be doing in your area of expertise. Look at it this way – most people go to university for four years only to leave with a diploma, hundreds of thousands of dollars of debt, and a degree in something that probably won’t be relevant in a few years anyway.

What’s a few years of learning the skills that will suit you for life – and being paid for it? Anyone with a bit of determination and an attitude of open-mindedness and learning can get their CSLB license – all it takes is a few years of hard work.

Additional Reading

What’s The Easiest Contractor’s License To Get In California?

What’s the easiest contractor’s license to get in California? Well, it’s complicated.

Maybe you’re a construction professional who has worked a bunch of construction jobs in California, but you’re ready to move to the next level with your California Contractors State Licensing Board (CSLB) contractors license. 

Or maybe you just moved to California from out of state and need to find work right away – but you need a contractor’s license to do it. Either way, you need your license right away and you want to know the easiest type of contractor license to get in California.

In this article, we’ll dig into the easiest contractor’s license to get in California.

How Hard Is It To Get Your License, Anway?

We’re just going to say straight from the top – getting your CSLB contractor license in California is not an easy task. 

Since the CSLB is the agency responsible for vetting contractors and ensuring contractors and the public alike are protected from unscrupulous and potentially destructive contractors, they have made the process to get your license intentionally difficult – to separate the contractor wheat from the contractor chaff.

No matter what contractor license you choose, you will still have to take the dreaded CSLB examination in order to get your license and become a licensed contractor. In short, there are no shortcuts to being a licensed contractor – it’s hard for a reason!

Types of Licenses

California offers a variety of contractor licenses, divided into three primary categories: 

  • Class A – General Engineering
  • Class B – General Building

Although the easiest contractor’s license to get in California depends on your individual experience and preferences, certain specialty licenses tend to have fewer prerequisites and require less experience. The following options are often considered the easiest:

  1. C-61 Limited Specialty License: Encompassing a diverse array of limited specialties not covered by other classifications, the C-61 license generally has lower experience requirements, making it a popular choice among newcomers to the industry.
  2. C-54 Ceramic and Mosaic Tile License: Allowing the installation and repair of ceramic and mosaic tile work, the C-54 license has a lower barrier to entry than other specialty licenses and is an attractive option for aspiring contractors.
  3. C-33 Painting and Decorating License: Authorizing painting, finishing, and decorating services for various surfaces and structures, the C-33 license typically has less stringent experience requirements and is often deemed one of the easiest licenses to acquire.

California Contractor License Requirements

Regardless of the license you pursue, there are standard requirements you’ll need to fulfill the following requirements.

  • Experience: A minimum of four years of journey-level experience in the specific trade is necessary. However, some licenses, such as the C-61, may have lower experience requirements.
  • Examinations: Applicants must pass both the trade-specific exam and the California Law and Business exam.
  • Background Check: Fingerprint submission is required for a background check.
  • Bonding: Contractors must secure a $25,000 contractor’s bond or an equivalent cash deposit.
  • Insurance: General liability insurance and workers’ compensation insurance are necessary to provide to the CSLB.

Find more information about contractor license requirements on the CSLB website.

California Contractor License Application Process

To obtain the easiest contractor’s license in California, follow these steps:

  1. Complete the Application: Fill out the Application for Original Contractor License
  2. Submit Supporting Documents: Provide proof of your experience, such as a Certification of Work Experience.
  3. Pass the Exams: Take and pass the CSLB exam, which consists of two parts: the Law and Business Exam and the Trade Exam.
  4. Get Fingerprinted: Submit fingerprints for a background check.
  5. Secure Bonding and Insurance: Obtain the required $25,000 contractor’s bond or cash deposit and the necessary insurance.

Gaining Experience for the Easiest Contractors License in California

In order to get a contractor’s license in California, you must have the relevant experience to work in your area of expertise.

If you don’t have the experience yet, here are a few ways to acquire that important on-the-job training:

  1. Become an Apprentice: Apprenticeships provide valuable on-the-job training and experience, which are essential for pursuing a contractor’s license in California. Seek apprenticeship opportunities in your desired trade to gain hands-on skills and knowledge. Reaching out to your local Trade Association can help you find someone to work for.
  2. Work as a Handyman: In California, you do not require a license for smaller jobs or repairs – any job that is valued under $500. By working as a handyman, you can build your skills and gain experience in various aspects of construction work. Just make sure you keep your jobs under $500 or you could face serious penalties.
  3. Complete a Trade School Program: Trade schools offer programs that teach specific skills related to construction trades, such as carpentry, plumbing, and electrical work. In many cases, these trade school programs can satisfy the CSLB contractor license experience requirement.

Conclusion

While there’s no one-size-fits-all answer to “What is the easiest contractor’s license to get in California?”, some licenses – like the C-61 Limited Specialty License, C-54 Ceramic and Mosaic Tile License, and C-33 Painting and Decorating License – generally have fewer prerequisites and are considered easier to obtain.

That said, there is no shortcut to getting any specific license more quickly and easily than others. The main sticking point for most contractors is passing the notoriously tough CSLB exam – so focus your time and resources on that rather than looking for shortcuts or ways to fast-track your contractor’s license.

Updated For 2023: How to Get A Contractor’s License in California

Let’s not waste any time – here’s the most direct, easiest way to get your Contractors State License Board (CSLB) contractor’s license in California in the year 2023.

Step 1: Determine the Type of License You Need

The CSLB offers three main types of licenses:

  1. Class A Contractor License – General Engineering Contractor: This is for engineers and projects that require specialized engineering knowledge and skill. Usually, this is public works – projects like highways, bridges, and public works projects.
  2. Class B Contractor License – General Building Contractor: Any contractor that works on structures that require at least two unrelated building trades or crafts, such as residential and commercial construction.
    1. Class B-2 Contractor License – General Remodeling Contractor: Contractors who work SOLELY on improvements or repairs to existing structures. B-2 holders cannot work on new construction.
  3. Class C Contractor License – Speciality Contractor: Specialty licenses are required for contractors who work in specific trades like HVAC or plumbing.

There are 41 Class C classifications offered by the CSLB, and they cover practically any construction trade you can think of.

You can see the full list of CSLB Class C classifications here.

Step 2: Meet the Minimum Requirements

Before applying for a contractor’s license in California, you have to meet some basic requirements:

  • Be at least 18 years old
    • You must be 23 to apply for a Class B General Contractor license
  • Have a valid Social Security Number or Individual Taxpayer Identification Number
  • Possess at least four years of journey-level experience in your chosen classification

Step 3: Prepare for the CSLB Exam

After ensuring you satisfy all the basic requirements to even apply for the CSLB exam, the next step is taking the infamously difficult CSLB exam.

This two-part exam takes roughly FOUR HOURS and consists of 200+ questions about the construction business, law, and your specific trade. It is an absolute doozy – a test that is designed to really test contractors’ knowledge and expertise – so it’s no wonder so many people fail it. 

The CSLB provides study guides and resources to help you prepare – in English and Spanish – but the ultimate way to make sure you pass the CSLB exam the first time is by taking an exam prep course with a reputable company.

These courses exist solely to help contractors pass the exam first try – so if you want the easiest and quickest route to your contractor’s license, taking a CSLB exam prep course – like those offered by CSLS – is a no-brainer.

Step 4: Complete the Application Process

Once you’re ready to apply, follow these steps:

  1. Obtain a Fingerprint Live Scan, as all applicants must undergo a criminal background check.
  2. Complete the Application for Original Contractor License (Form 13L-50).
  3. Pay the non-refundable $330 application fee.
  4. Provide proof of your work experience
  5. Designate a qualifying individual (either yourself or someone else) responsible for the license’s activities.
  6. Submit a contractor’s bond in the amount of $25,000, which ensures compliance with California’s contracting laws.
  7. Submit proof of Workers’ Compensation Insurance

Mail your completed application and supporting documents to the CSLB headquarters. After reviewing your application, they will schedule your exams. You can also apply online now at the CSLB website.

Step 5: Pass the Examinations and Pay Licensing Fees

After submitting all the application paperwork and proving that you are legally able to be a licensed contractor in California, you will have to take the dreaded CSLB exam.

If you’ve studied well and prepared yourself adequately to achieve a 72% grade on both exams, you will receive a Notice of Examination Pass. Nowadays, you will receive that information basically right after receiving the test. 

Within 60 days of receiving this notice, pay the following fees:

  • $200 initial licensing fee
  • $100 Contractor’s Bond registration fee (if not previously registered)

Once you’ve completed these steps, the CSLB will issue your contractor’s license.

Step 6: Maintain Your License

To keep your contractor’s license active in California, you must:

  • Renew it every two years
  • Maintain a $25,000 Contractor’s Bond
  • Comply with Workers’ Compensation Insurance requirements
    • Every subcontractor on your job site must be covered by Workers’ Comp!
  • Complete continuing education requirements, if applicable

Conclusion

Getting a contractor’s license in California is a significant milestone for any aspiring contractor. By following this comprehensive guide, you can navigate the process with confidence, pass the required exams, and secure your license. Don’t forget to invest in your professional development, stay updated on industry trends, and implement efficient business practices to maximize your success in the Golden State.

 

FAQ: CSLB Licensing Workshops

Are you considering becoming a licensed contractor in California? The process can be overwhelming, with what feels like thousands of hoops to jump through and forms to fill out. 

Wisely, the Contractors State License Board (CSLB) has started offering licensing workshops to help guide you through it. 

In this article, we’ll cover the most frequently asked questions about CSLB licensing workshops, including what they are, how they can help you, and how to sign up.

What Are CSLB Licensing Workshops?

The CSLB offers a variety of licensing workshops to assist individuals who are interested in becoming licensed contractors.

These step-by-step guides are short, but highly informational, workshops that really guide you through the entire process of applying for, testing for, and ultimately receiving a California contractor license. 

They cover all sorts of topics and have been shaped by common questions that the CSLB found contractors were asking. Some of the areas covered in these workshops include:

  • A general overview of CSLB licensing requirements
    • What do you need to actually become a contractor?
  • Business and financial management for contractors 
    • How to manage the business side of contracting?
  • Exam preparation and test-taking strategies
    • Basically – how to pass the notorious CSLB exam?
  • Laws and regulations related to contracting in California
    • Learn how to make sure you’re doing work legally
  • How to avoid common mistakes in the licensing process
    • Mistakes can hold up your license for weeks or months. Just don’t!
  • How to file a complaint against a contractor
    • An unfortunate side of the business, but necessary. CSLB professionals can tell you how to best handle an unscrupulous contractor.

How much does the CSLB licensing workshop cost?

These workshops are free! You don’t have to pay a red cent! 

The CSLB started giving these workshops out as a way to help contractors get licensed, so they have no need to charge. They just want to help you become a contractor!

Where and when do I take the CSLB licensing workshop?

The CSLB hosts their licensing workshop on the first Friday of every month at 10:00 a.m.

Usually, these workshops are in-person, but since the COVID pandemic, they’ve shifted these workshops to entirely online. As of April 2023, it seems that these workshops are still fully digital. 

How do I sign up?

The CSLB recommends signing up for their email list to receive access to register.

They encourage you to check the box for “Podcasts and Webcasts” to ensure you receive your invitation, as well. Otherwise, you’ll receive the wrong information (although perhaps still relevant to your license!).

Is the CSLB licensing workshop available in Spanish?

Yes! The CSLB licensing workshop is available in Spanish.

Find out more about taking the licensing workshop here, or watch the video below:

Participa en nuestro workshop para obtener la licencia para construir

Bonus: Get CSLB Exam Study Guides… In Spanish!

Spanish-speaking construction professionals rejoice! The CSLB has released a bunch of brand-new Spanish study guides. 

These study guides cover a variety of topics, including construction law, safety, and business practices, and can help you pass the exam first try.

CHECK OUT OUR ARTICLE HERE to see the full list of new study guides in Spanish. Here are a few of the big ones: 

  • C-6 Cabinet, Millwork and Finish Carpentry
  • C-8 Concrete
  • C-10 Electrical
  • C-15 Flooring and Floor Covering
  • C-20 HVAC

These study guides provide valuable assistance to Spanish-speaking applicants who may struggle with the English language, so check them out!

How Much Does It Cost To Be a Certified Contractor in California?

In order to get your contractor license in California, you need to be 18 years old, have 4 years experience of journey-level work, you need to pass the CSLB exams and you have to pay all the associated fees to the CSLB.

While the process to become a California general contractor is simple, there are fees you have to pay in order to legally perform contracting work in California.

Here’s everything you’ll need to pay for to become a contractor certified by the CSLB.

CSLB Exam Fees
The first fees you face when applying for your CSLB license are for the CSLB exam.

It is $450 to take the test to get your CSLB license. This is called the Original Application fee and you have to pay it to become a CSLB certified contractor. 

This fee only applies to one exam and each exam applies to one specific classification, so if you do specialist work that requires a specialist license, you will need to pay this fee twice.

For example, if you are an HVAC specialist contractor, you will have to pay for both the general exam and the HVAC exam in order to do HVAC work in California.

If you fail, you have to pay a $100 Re-Examination fee for every time you want to re-take the exam (in addition to the time it takes to schedule and review your examination). If you fail the exam, the costs add up quickly.

License Fees
Once you pass the exam, there are a number of additional fees you will have to pay to receive your license and start working as a general contractor.

The first one is an Initial License Fee, which is $200 if you are the Sole Owner of your business. If you are a partner in a business, you will have to pay $350 for your CSLB license.

You will also have to pay $32 for the Fingerprinting Fee (a background check) and the FBI Processing Fee of $17. 

Contractor’s Bonds
The final hurdle for getting your CSLB contractor license is to supply a proof of a Contractor’s Bond to the CSLB. 

Contractor’s Bonds are like insurance – you pay a fee in order to be covered financially in the case of a disaster or similar scenario.

In order to be a CSLB-certified California Contractor, you must give the CSLB proof that you have contractor’s bonds worth $25,000. 

Contractor’s bonds will cost you $60 to $600. How much your bonds cost will depend on your credit score.

How much does it cost in total to become a contractor?
In total, it will cost you somewhere in the range of $700 to $1500 to get your Class “B” License and become a California general contractor.

Specialist contractors like electricians, plumbers and masons require a Class “C” license – which requires you to do the entire process all over, making it doubly expensive. Expect to pay $1200 to $2000 for a Class “C” License.

Those costs can rise, too – it costs $100 every time you fail the CSLB test. Save time and money with CSLS’s contractor license courses. Our expert guidance will make sure you pass the test the first time, so you can start making more money right away.

Skills You Need for a Career in Construction

Construction’s a great industry to work in, but it helps if you can start off on the right foot. Although most jobs give you some flexibility, others may require you to spend a lot of time on your feet or working with your hands. Your ability to succeed in your field depends on the skills that you bring to the table. If you’re thinking about starting in construction but you’re not sure if you’re a good candidate, here are a few skills to develop as you decide.

Problem Solving
Like many jobs, construction requires you to solve problems on a regular basis. Some of them might call for you to act quickly, while others demand a thorough analysis and a careful response. You will need to practice different approaches to common issues in your field, so that you are ready to address them as they come. For example, learning how to handle a minor dispute about the details of a contract may help you to avoid escalating it into a major crisis. Although this is something that often comes with experience, the ability to analyze all sides of a problem and draw the best conclusion from there will make it easier to avoid mistakes in the first few years.

Quick Thinking
In most careers, your decisions don’t usually put your coworkers at immediate physical risk. Construction is somewhat unique in this arena. In many construction fields, the decisions that you make from minute to minute can ensure an ideal outcome for your project, or create disastrous consequences for your business and the people working with you. Quick thinking comes with practicing the job, but also analyzing the risks inherent in any particular task. The more you know in advance, the easier it is to make a decision on the fly, when moments matter.

Good Communication
As the owner of a contracting business, you will be communicating with:

  • Prospective and current clients
  • Subcontractors
  • Contractors
  • Employees

You need to be able to get your point across clearly, simply and in the right format. This means studying up on basic communication techniques for emails, phone calls and even text messages. It also includes developing an understanding of the different methods people use to communicate, and which ones are best for the task at hand.

Math and Simple Accounting
If you were a high school student who wondered when you would ever use math knowledge after school, you might be surprised to discover how much you use it in construction. And it’s not just the ability to determine the correct angle or measure something before you cut it. At first, you might be doing a lot of your own finances for your contracting business. Being able to correctly estimate items on an invoice or figure out how much income you need to balance your expenses is a skill you need for your business to survive. You don’t have to be an expert at mental math. You just need the basics, and the ability to find apps that will help you.

Willingness to Learn
You’ll often hear education experts say that they can teach someone how to do something, but they can’t instruct them how to care about learning it. Although construction is an industry that’s been around for thousands of years, it is in a constant state of change. New technologies, equipment and building practices are always just over the next horizon. This means that once you’ve mastered the skill, there’s a high likelihood that you will need to relearn it in a different way within a few years. The ability to do this, and the eagerness to do so, can help ensure that your skills remain current and that your business can stay relevant with the changes.

Building a career in construction calls for a lot of basic skills that you may already have. To see if you’ve got what it takes to start your own contracting business, visit CSLS today!

The 5 Hardest Jobs in Construction

Construction was never known as an industry where you could work for your whole life and never wear out or need to slow down. Yet, there are certain jobs that are much harder on you, or simply harder for you to do. In many cases, the safety of the various tasks and the location of the work determine how complicated it can be. These five jobs may be rewarding, but there’s no doubt that you’ll put in a lot more to succeed at them.

Roofer
Everyone needs a roof and they don’t last a hugely long time, depending on the material. This means that there is usually a good market for roofing. It also happens to be one of the most dangerous jobs in construction, according to the Bureau of Labor Statistics. You need a lot of physical strength and stamina to keep laying the next shingle, tile or panel. You’re also doing it from at least 15-20 feet above the ground. This is why roofers tend to have the most accidents and annual fatalities among all construction fields. It’s also why contractors themselves label it the hardest job.

Demolition
Demolition is a big part of construction, especially in heavily-populated areas where you must knock something down to build something else. People who work in this field need to use heavy equipment that can be difficult to employ but also hard on the arms and back. The complication of the position involves:

  • demolishing portions of a building without destroying the whole thing
  • avoiding bringing the building down on people inside it
  • proper disposal practices, particularly for hazardous items like asbestos insulation

Many other construction fields feature demolition as a subsidiary component. For example, a roofer may demolish the old roof before installing new. But it is also a field on its own.

Electrician
Some positions, like working as an electrician, are tricky but not necessarily as physically demanding. This is good because you really need to know what you’re doing when you take this job. The complication depends on the work you do. Many electricians work independently in new construction, maintenance or repair. Most will specialize but some will take a variety of projects. Others may become employees in companies that need testing or repair for complex instruments. In any of these approaches, you’re thinking not just about your own safety but that of everyone who will use it going forward.

Carpentry
Carpentry is a physically demanding job that is also highly variable. What you do depends entirely on the job you take, and you might be doing completely different tasks every day. Framing a house sounds like one task, but it requires an understanding of how to build walls, floors, stairs, windows, doors, etc. This doesn’t include all the artistic design and shaping that many carpenters also employ, for kitchens, staircases and the like. Learning to construct a sturdy frame requires a unique skillset than what’s needed than to turn a beautiful post as part of an historic renovation.

Ironworkers
Like carpentry, ironworkers keep a mix of complication and hard work. Ironworkers have injury rates not far off from roofers because they also often work from higher locations while a building is in progress. Like welders, they are at higher risk for cuts and burns from the equipment they use. And even if they follow all safety protocol, they still have to lift, carry and position heavy pieces of steel needed during construction.

Choosing a job in construction often means work that will push you to your limits, in good and possibly dangerous ways. To start on the path to a job that’s right for you, visit CSLS today!