California Contractor License Bond Cost

While $25,000 might seem like a large amount to pay, in reality, you only need to pay a percentage of it to get bonded, which is called the bond annual premium. The surety company will look at several factors to determine your California Contractor License Bond cost, most importantly, your credit score. Factors such as years licensed and years of industry experience will also play a factor in your California Contractor License Bond cost.

​

• If your credit score is above 650, you’ll likely have to pay between 0.5% and 2% of the bond amount.

• For applicants with credit scores between 600 and 649, the rates range between 2.5% and 4%.

​

​

​

 

Who is required to be bonded

In California, the Contractor License Bond is required for:

​

• All licensed contractors – Any individual or business applying for, renewing, or maintaining a contractor’s license with the California Contractors State License Board (CSLB) must have a $25,000 contractor license bond per license classification.

​

• Limited Liability Companies (LLCs) – In addition to the $25,000 contractor bond, LLCs must also maintain a $100,000 LLC Employee/Worker Bond to guarantee payment of employee wages and benefits.

​

• Qualifying Individuals (QIs) –

  • Responsible Managing Officers (RMOs) who own less than 10% of the corporation’s voting stock must hold a $25,000 Bond of Qualifying Individual.

  • Responsible Managing Employees (RMEs) must hold a $25,000 Bond of Qualifying Individual because they have no ownership interest in the company.

​

• Contractors with Disciplinary Actions – If a contractor has had their license revoked, the CSLB may require a Disciplinary Bond (minimum $15,000, amount determined by CSLB) for reinstatement.

Basically, anyone who wants to legally operate as a contractor in California—whether as an individual, corporation, LLC, or qualifying individual—must carry the required bonds to stay licensed and in compliance.

 

​

​

​

​

How to become a licensed contractor California?

​

Starting your own contracting or construction business in California? 

​

Steps to Get Your California Contractor License

1. Choose Your License Classification

2. Decide whether you’ll be licensed as a General Engineering, General Building, Residential Remodeling, or Specialty Contractor.

3. Determine Your Qualifying Individual
   This can be you (as the business owner) or an RMO/RME who meets CSLB’s experience and exam requirements.

4. Meet Financial & Bonding Requirements
   Secure the $25,000 Contractor License Bond (plus any additional bonds if applicable).

5. Complete CSLB Application Forms
   Submit your license application with proof of your bond, business entity registration, and any required background information.

6. Pass the Required Exams
   Most applicants must pass both a trade exam and a law/business exam.

7. Maintain Continuous Bond Coverage
   If your bond lapses, your license will be suspended until coverage is restored.

​

🛠️ Need Help Starting Contractor or Construction Company?

We can help you with your surety bonds! 

📞 Talk to an expert today — Get licensed faster and easier!