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How to a Get Law and Business Contractors License

Why Study Business Law?

A Law and Business Contractors license by the California Contractors State License Board (CSLB) is required to perform work on a majority of construction projects in California. In California, all individuals and businesses that construct or alter, or offer to construct or alter, any construction project except federal projects has to be licensed by the CSLB. This is especially true when the entire cost of materials and labor is $500 or more.

Obtaining this license is a long process of careful considerations. Here are the things you will have to take care of in order to get licensed:

Know Who Can Become a Licensed Contractor

To qualify for this license, you will need to meet certain criteria, which requires that you must:

  • Be at least 18 years of age
  • Possess a social security number
  • Be able to show that you have the required experience and expertise needed to take care of the daily activities of the construction business

Acquire the Required Experience

An individual, who wishes to be qualified for this license, must possess at least 4 years of experience at the journey level, within the ten years before the application for the license. Candidates will only be given credit for experience as a foreman, journeyman, contractor, supervising employee or owner-builder. In addition, all relevant experience will have to be verified by a qualified individual who has first-hand knowledge of the individual’s work during the relevant time frame.

As a qualifying individual, you can get credit as follows (for up to a maximum of 3 years):

  • Up to 1.5 years of credit can be attained upon submitting of transcripts relating to an Associate of Arts degree from an accredited college. The degree needs to be in building or construction management.
  • Up to 2 years of credit can be received if transcripts for a (i) 4-year program from an institution that is accredited, are submitted in the fields of business, accounting, physics, economics, mathematics or a related field, (ii) a professional degree in law, (iii) a significant amount of university-level work in subject areas of accounting, business, architecture, drafting, construction technology, mathematics, engineering, economics or physics.
  • Up to 3 years of credit can be attained if any of the following are submitted: (i) a Certificate of Completion of Apprenticeship from an accredited program or a certified document that signifies the completion of apprenticeship training from a union in the classification being applied for; (ii) official academic records for a four-year degree from an accredited college in any field, such as architecture, engineering, construction technology or others that are directly relevant to the classification being applied for; (iii) transcripts of a four-year degree from an accredited university in the subject areas of horticulture, if applying for a Landscaping classification.

How to Study for Business Law Exam

Know the Classifications a Contractor Can Be Licensed In

For contractors in California, there are three different classifications available. These include:

  • Class “A” – General Engineering Contractor: The main business for such a contractor is related to fixed works that require specialized engineering know-how.
  • Class “B” – General Building Contractor – The main business for such a contractor is related to any structure constructed, in the course of being constructed, or set to be constructed at a time in the future, requiring in its building procedure the use of at least two distinct building trades or crafts. Carpentry and framing projects can be performed without constraint. Class “B” contractors also have the option of entering into direct contracts for projects that involve only one trade, given that the contractor holds the relevant specialty license.
  • Class “C” – Specialty Contractor: For this classification, there are 42 separate options for contractors, whose foremost business involves the application of specific building trades or crafts.

Apply for a Contractor’s License

The application procedure for a contractor’s license requires you to follow certain steps. These include completing and submitting the following:

  • An Application for Original Contractor License – In case of individuals, corporations and partnerships
  • An Application for Original Contractor License (Exam Waived) – In case of individuals, corporations and partnerships with a qualifying person
  • An Application for LLC Original Contractor License – In case of LLCs
  • An Application for LLC Original Contractor License (Exam Waived) – In case of LLCs with a qualifying individual

In the options above where you are required to give an exam, you must submit the relevant application, along with a processing fee of $330 (the amount being charged currently) to the CSLB. In cases where you do not need to give the examination, you ought to submit the relevant application with a processing fee of $300 (the amount being charged currently), along with a preliminary licensing fee (currently $200) and an additional classification fee of $75 (the amount being charged currently).

Note: The applications need to be submitted in person or through mail to the CSLB. Even though the CSLB has different offices, the office in Sacramento is the only one that accepts the applications. The address for this office is: P.O. Box 26000, Sacramento, CA 95826.

Know the Requirements of the Examination

If you are giving the examination, there are certain requirements you will need to. You will be required to pass a written law and business exam for it you have to prepare Business Law Practice Exam and a specific trade exam. You will be allotted 3.5 hours for each exam, which would always be in a multiple-choice format. The centers for exams are typically located in Fresno, Oakland, Sacramento, San Bernardino, Norwalk, Oxnard, San Jose and San Diego. The details for your exam venue and date, along with a study guide, will be sent to you by the CSLB.

In certain cases, the Board may waive the examination. These cases involve:

  • If the individual is currently licensed and has a good reputation in the same classification in which he is now applying for a license
  • If the individual has been licensed and has had a good reputation within the last five years in the same classification in which he is now applying for a license
  • If the individual has passed both the law and business examinations and trade examinations within the past five years, in the same classification in which he is now applying for a license
  • If the individual is the immediate family of a person who is already licensed, and has had a good reputation for five out of the past seven years, prior to the application procedure. The qualifying individual must be deeply involved in the licensee’s business for five out of the past seven years and is applying for the same classification, and the license is mandatory to go on with the operation of an existing family business due to the absence or death of the licensee.

Note: In cases where you think that you might be entitled for an examination waiver, you will still be required to fulfill the “Experience” section of the application. This is, unless you are a current qualifier on a license in good standing in the same class, as the license you are now applying for.

Additional Documents that You May Need to File

Either with your application, or at a later time specified by the CSLB, you need to submit the following documents and provide relevant information:

  • Contractor Bond  (Currently $15,000): This needs to be submitted in the business name of the applicant
  • Qualifying Individual Bond or Alternative (Currently $12,500): The bond of the qualifying individual must be in his/her own name and the business name of the person applying
  • Proof of Workers Compensation Insurance or Exemption Certificate: This is to provide proof of workers’ compensation or an exemption certificate to certify that no workers are employed

In addition to these requirements, LLCs are also required to submit the following items:

  • Surety Bond (Currently $100,000): In the event of a LLC’s failure to pay wages, fringe benefits or interest on wages, along with other such contributions, this surety bond is meant to be for the benefit of affected employees or workers
  • Liability Insurance: Proof of liability insurance, with a cumulative limit of $1 million for licensees who have five or lesser employees, and an added $100,000 for each additional employee. However, the amount must not exceed a total of $5 million.

How to Renew Your Expired License

Valid licenses expire every two years, while inactive licenses will expire every four years. Keeping this in mind, you should know the expiration date of your license and renew well in time.

The License Renewal Process

CSLB will send you a renewal application, approximately 60 days before your license is due to expiry. To ensure the smooth performance of this process, make sure you inform the Board of any address changes, in a timely manner

Note: In case if you do not receive the renewal application, you can order one online or simply call the CSLB at 1-800-321-CSLB (2752).

You have to send your renewal application to the CSLB before the expiry date is passed, in order to avoid any unlicensed time. The responsibility of following through with the renewal process lies with you, and not with the Board, even if you do not receive the form.

Bear in mind that the processing time can vary significantly, therefore you should submit the renewal form in a timely manner.

Renewal Fees

The renewal fees would vary according to the time-frame in which you renew.

  • Timely Active Renewal – $360
  • Timely Inactive Renewal – $180
  • Delinquent Active Renewal – $540
  • Delinquent Inactive Renewal – $270

The delinquent fee option comes into play if an acceptable renewal is not received on or before the date of expiry.

Changes in License Structure:

If the nature of the business entity in question has changed (for instance, from a sole proprietorship to partnership, corporation etc), you will not be able to renew the license.

Note: You can renew a suspended or expired license as well.

If your application for licensure is approved, you will receive a Letter of Acknowledgement from the CSLB. This will contain a nine-digit Application Fee Number and a four-digit Personal Identification Number. You can use these to track your application on the CSLB website. The application processing can take up to 3-4 months, therefore wait patiently. You may contact the CSLB if you have any other concerns.

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How to a Get Low Voltage License

According to the California Code of Regulations, Title 16, Division 8, Article 3. Classifications,

     “A communication and low voltage contractor installs, services and maintains all types of communication and low voltage systems which are energy limited and do not exceed 91 volts. These systems include, but are not limited to telephone systems, sound systems, cable television systems, closed-circuit video systems, satellite dish antennas, instrumentation and temperature controls, and low voltage landscape lighting. Low voltage fire alarm systems are specifically not included in this section.”

The C-7 Contractor’s License is required by installers and technicians etc. who are involved in the process of installing, servicing or maintaining all types of low voltage systems. This license does not allow the licensee to work on low voltage fire alarm systems, fire protection equipment, lock and security equipment and solar equipment.

How to Get Low Voltage License?

Low Voltage contractors need a license to practice. For this, they have to follow a certain procedure, pay fees and provide several documents to complete an application and verification process. The licensing requirements vary from state to state.  If you need state-specific details, you can check the National Electrical Contractors Association website that lists in detail requirements for each state.

The following contains requirements for the C7 Low Voltage Contractors License in California.

California Low Voltage Systems License C-7 Requirements

You are advised to gather complete information on all relevant matters before beginning. The process itself can be a little complicated, therefore, being sufficiently prepared for it will be of great help. Have a look at the basic criteria you will need to meet and the kind of experience that you might be given credit for:

  • You must be at least 18 years of age or older
  • You must have at least 4 years experience of performing or supervising low voltage work (personal experience is also accepted by the state now)
  • A person with any kind of first-hand knowledge of your experience, such as the homeowner or certain employer, must be able to verify the experience
  • College degree or trade school credits can be counted as up to 3 years of the needed trade experience
  • Obtain the “Application for Original Contractor’s License” from the Contractor’s State Board office or by calling them. You can also download this application from the CSLB website
  • To get the Low Voltage License, you have to pass the Low Voltage Systems Examination along with the Law and Business Exam

California Low Voltage Systems Contractor Exam C-7 Details

If you are getting licensed for the first time, you will need to take both the law and trade exams, along with the actual contractor’s exam.  The actual contractor’s exam has 100-120 questions, with a time limit of 2-1/2 hours (around 150 minutes). You will require pre-approval from the state to sit for the examination. In addition, bear in mind that you will need at least 70% marks to pass the exam.

Exam Content

The content for a C-7 Low Voltage Contractors License Exam includes a number of topics relating to the various aspects of low voltage equipment, their installation, and maintenance and servicing. You will be exposed to topics such as job design and planning, material selections and estimation, wire/cable installation and termination, component installation, testing, troubleshooting, repairing and safety while installing.

There are several organizations that provide detailed study guides to help applicants prepare for this exam. Even if you are reapplying for a second or third time and have “mastered” the exam content, you’d still be better off preparing for the exam. This is necessary since requirements keep on changing. In addition, low voltage equipment also frequently gets updated.

Preparing for the Exam

The first thing you need to do is get your hands on the right kind of study materials. Ideally, you should cover major topics such as basic electrical theory, plan and circuit symbols, electrical materials, low voltage relay circuit, first aid, satellite antenna systems, optic fiber and computer networking processes. You might also want to cover some aspects of the health and safety orders that would be relevant to the low voltage exam and subsequent practice in the field.

California Low Voltage Systems Contractors C-7 Fees

To apply for a license, a certain amount of money needs to be paid for processing fees and application charges. The State of California has an initial application fee of $330 for new applicants. The fee amount is the same for contractors who are reapplying for licensure. There is an additional fee ($200) for a two-year license card. Following the approval of your application by the Contractors State License Board, you will be notified regarding your test date and further test-related details. In addition to these, further financial requirements need you to have at least $2,500 in working capital (this can be in cash form or equipment that will need to be verified). Along with these requirements, applicants are also required to file a bond with the Registrar in the amount of $15,000.

Receiving the C-7 Low Voltage Contractor’s License Certificate

Once you have successfully passed the examination, you will receive a wall certificate and a pocket license, certifying that you are a licensed C-7 contractor.

Further Contact Details

If you have any other queries regarding the license, its requirements, exam, fee structure or application process, following is the address to get in touch with the California State Licensing Board.

California State Licensing Board

9821 Business Park Drive

Sacramento, CA, 95826-0026

You can also get in touch with them on their website:

Website: www.cslb.ca.gov/

Note: All relevant information and guidelines are provided in great detail on the website. You will find Application for Original Contractor License in PDF – this will guide you through the application process.

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How to Become A C10 Electrical Licensed Contractor

What is an Electrical Contractor?

According to the California Code of Regulations, Title 16, Division 8, Article 3. Classifications, a C10 Electrical Licensed Contractor “places, installs, erects or connects any electrical wires, fixtures, appliances, apparatus, raceways, conduits, solar photovoltaic cells or any part thereof, which generate, transmit, transform or utilize electrical energy in any form or for any purpose.”

How Can You Get C10 Electrical Contractor License in California

Why do you need a C10 Electrical Contractor License in California?

If you want to work as an electrical contractor in California on any project that is valued at $500 or more, you will be required to obtain a C-10 electrical contractor license from the California Contractors State License Board (CSLB). If you contract without a license, you can be held legally answerable for it and might even end up with a potential sentence of six months in jail.

How Can You Get C10 Electrical Contractor License in California?

To get a C10 Electrical Contractor License in California, there are certain steps you need to follow to gather all the required documents and get your C-10 California Electrical Exam prep in line. Have a look:

  • You must have at least four years of on-the job experience at a journeyman level or higher. In addition, you must also pass two tests – a law and business test and an electrical contractor test. Only on successful completion of these two examinations can you be issued a license.
  • You must complete a California electrical apprenticeship program. These programs combine classroom instruction with hands-on training and take at least four years to complete. In addition, you must also take and pass a certification exam to get your Certificate of Completion of Apprenticeship. You will need to include this Certificate in your C10 license application.
  • You will need to get employed as an electrical journeyman and complete one year of work in this position. Till this step, if you have completed an apprenticeship program, you will be given three years of credit and you will not have to put in the four-year general requirement.
  • Get an online copy of the Original Contractor’s License packet from the official CSLB website. Go through this pack and make yourself familiar with the basics of the licensing procedure.
  • Submit a Certificate of Work Experience from any employer under whom you have previously worked as an electrical journeyman. For applicants who have completed the apprenticeship program, you will only need to provide one year of such experience.
  • Complete the application and give it in for final processing and submission. Make sure you have provided all the supplementary documents and relevant fees and clearly mentioned the indicated address. When and if your application gets approved, you will receive a Notice to Appear for Examination and a request for your fingerprints. Guidelines will be provided on how to arrange your fingers to send an electronic copy of your prints to CSLB from your local Live Scan facility. The receipt you get from here will have to be submitted to the CSLB. Make sure you submit this receipt no later than 90 days after receiving your fingerprints request.
  • Once you have followed the above, you will be allowed to sit for the two required exams at the date and time you are provided with in your exam notice. In case of a failure to appear for the exam at the given date and time, you may be allowed to reschedule for a certain fee. Your test results will be available to you before you leave the testing site. Once you have completed the exam, you will be given instructions to submit a surety bond along with a proof of workers’ compensation insurance and a licensing fee.
  • Get a surety bond in the amount of $15,000 and submit the original bond to the CSLB within 90 days of the bond’s effective date. After this, get workers’ compensation insurance from any licensed insurance agency in California. Submit a copy of this to the CSLB.
    After you have completed the above and submitted your licensing fee to the CSLB, you will be issued a license. In addition, you will also get a wall certificate and a permanent wallet-size pocket license. You will be required to display the wall certificate in your office at all times.
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How to Become a “Licensed Contractor” in California

Construction is a science which requires precision. Lack of precision can lead to faulty construction resulting in loss of life and property. This is why the construction industry in California is regulated by the state of which licensing is just one part.

Safeguarding California residents’ lives and their right to enjoy property, the state requires specific contractors to be licensed. Licensing confirm the individual’s knowledge in the area and authenticates that their work is of a certain standard. This ensures safe and quality construction work.

What do I need to become a Contractor

From the outset, all prospective contractors in California must know that they may be required to get a construction license if they wish to pursue this trade. California makes it mandatory for all contractors to be licensed especially if they intend to bid for a project which is valued at $500 or more. This includes both the project’s material and labor costs. Therefore, one of the biggest incentives in getting licensed in California is the ability to bid for high value, big construction projects. Unlicensed contractors can only bid for small construction projects.

The state of California repeatedly reminds its residents to ONLY hire state-licensed contractors. Smart consumers will ask to see a contractor’s “pocket license”. It is therefore in the contractor’s own interest to get licensed both to avoid state penalties, including jail term and more importantly, build customer confidence, leading to a long-term business relationship.

Why-Become-a-Licensed-Contractor-in-California

Prospective contractors must contact the Contractors State License Board (CSLB) for licensing. While in-depth information is available on CSLB’s website, the following may help in getting started:

  • Pass a criminal background check
  • Post a license bond
  • Pass exams (business and trade and license law)
  • Verify four years of journey-level experience in the trade

Getting licensed may be a time consuming process and therefore it is advised that all prospective contractors start early.

Penalties for Unlicensed Contractors in California

The CSLB was established to protect consumers. The Board ensures high construction standards through regulation and penalizes those who are found to be in violation of state construction laws.

Unlicensed contractors through faulty construction can put peoples’ lives in danger. In addition, they give a bad name to the whole industry and avoid taxation through engaging in unlawful trade activities. To curb this practice, the CSLB’s team called Statewide Investigative Fraud Team (SWIFT) conducts undercover operations to unearth illegal construction rackets.

The first offence is classified as a misdemeanor, which is punishable with up to 6 months in jail and/or a $5,000 fine. The convicted may be sentenced with an additional administrative fine of $200 to $15,000. After serving the sentence, if the contractor continues with their old ways, they could be slapped with a fine of $5,000 or 20% of the contract price. Furthermore, second offence automatically attracts a jail term of 90-days.

It must be remembered that not all violations of California’s construction laws result in a misdemeanor; some are classified as felony as well. Those who misrepresent themselves as licensed contractors or use another person’s license for the purpose can be convicted of a felony. Felons serve jail time in state prison.

Is California Contractor’s License worth the Effort?

Yes! In addition to the reasons given above, there is one more reason which should stop an unlicensed contractor – unlicensed contractors can be “ripped off”. Unlicensed contractors cannot legally sue for non-payment. Imagine a shady customer finding out their contractor’s licensing status and refusing to pay once the project is completed?

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How to Become a Licensed Flooring Contractor

Educational Requirements for How to Become a Licensed Flooring Contractor

Flooring Contractors LicenseAre you wondering how to become a licensed flooring contractor? Before you can apply for your licensure, it would be wise to take care of the educational requirements first. Even though this occupation does not require a formal degree, you should consider getting an associate degree in business management, since independent contractors are practically small business operators. An associate degree program would teach students the main concepts of operating a business, including the management of human resource, information and finances. In addition to getting a degree, you can also opt for some on-the-job training. According to the US Bureau of Labor Statistics, carpet and flooring installers typically do not have any formal training. It is not even required by most employers in this field that workers come in with a lot of professional experience. Rather, these workers are expected to learn all the skills they need on the job. They start out as helpers and go on to become more experienced workers. With the passage of time, the complexity of the work they get assigned increases. In case of a large employer, you might even get the opportunity to complete a sponsored apprenticeship program.

How to Become a Flooring Contractor

To get licensed as a flooring contractor, you will need to meet certain requirements. These requirements would vary according to state. For the purpose of this article, the state of California and its particular laws are discussed below:

Following are the steps you need to follow to obtain a Flooring Contractors License:

  1. Acquire 4 years of experience in the trade for which you plan to get the license for. Working as a contractor, journeyman, foreman or a supervisor would help you meet the experience criteria.
  2. After this, you will have to take two exams: the California Law and Business Exam and the Flooring & Floor Covering C-15 exam.
  3. To take this exam, you will first need to apply through the Application for Original Contractor’s License and pay the application processing fee of $250. An addition $150 in fees would have to be paid after both exams have been successfully passed.
  4. Once you receive the notification for the approval of your application, you will need to submit fingerprints for a background check.
  5. You will also be required to meet additional financial requirements: $2,500 in working capital for flooring projects; contractor surety bonds of $7,500 and $12,500. Along with these financial concerns, you will also be required to provide workers compensation insurance if you plan on hiring other individuals.

Becoming an Independent Carpet and Flooring Contractor

Once you have gathered the relevant experience and gotten hold of your practicing license, the next step is to become an independent carpet and flooring contractor. In addition to the duties pertaining to the flooring contractor’s job description, you will also be taking care of business and finance matters. Supervising, coordinating, installing and monitoring tasks become an addition to their existing job descriptions.

After you have established yourself as an independent contractor, the next order of business can be developing and expanding your clientele. To keep your business afloat, you will need to invest time and money into building a strong customer base. Marketing techniques such as advertisements, flyers and newspaper ads might help you become more visible to your desired market segment.

Obtaining a flooring contractors license is not a simple or small process. But it is certainly worth your time and money. Once you have established your expertise in the market, you will most likely be a highly sought-after professional.

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