California State Contractors License Law
and Business Test Study Guide Questions
And Answers
Who must be licensed as a contractor? - Answers✔Anyone who constructs or alters on any job that
costs 500 dollars or more.
How old do your have to be to get a contractors license. - Answers✔18
What are the types of licenses issued. - Answers✔Individual, partnership, or corporation licenses. Joint
Venture licenses are made up of 2 individual active licenses for a specific purpose.
Does California recognize contractors licenses from other states or countries? - Answers✔No
What charge is it to contract without a license? - Answers✔Misdemeanor, meaning potential jail time,
fines and administrative fines
Are there educational requirements to obtain a contractors license? - Answers✔No
Can technical training and apprenticeship training substitute the required training required for the 4
years needed. - Answers✔Yes. As long as the applicant has a minimum of 1 year of practical experience.
Are all applicants required to submit to a background check? - Answers✔Yes
What are the total fees I must pay to obtain a contractor license? - Answers✔$480.00. The non-
refundable processing fee of $300 and the two year initial license fee of $180. Current fees are printed
on the application forms and notices.
How often do I have to renew my license? - Answers✔every two years
Will I receive notice before my active license expires? - Answers✔Yes. 60 days, but remember it is your
responsibility to know and renew without being reminded.
What is the active license renewal fee? - Answers✔$360. You are required to renew every two years.
Is there a fee for renewing an active license - Answers✔$180.
Inactive licenses must be renewed how often? - Answers✔Every four years
ALL RIGHTS RESERVED.
What is the minimum operating capital that you must have to qualify to be a contractor? -
Answers✔$2500
If you are changing the business name or address, or changing the personnel or business type, how long
do you have to notify the state of those changes? - Answers✔90 days
If you change owners or the business entity, changing the license structure, can you renew your license
at the end of the year or do you need to apply for a new one. - Answers✔Apply for a new one.
Can your old license be renewed? - Answers✔Yes. If your license has been expired between 3 to 5 years.
Another name for the qualifier. - Answers✔The test-taker. Or the person whom the license is going to
be issued.
What is the qualifier called if he/she is an individual? - Answers✔The owner
What is the qualifier called if he or she is a partner? - Answers✔Qualifying Partner.
What is the qualifier called if he or she is an officer? - Answers✔RMO, Responsible Managing Officer
What is the qualifier called if he or she is an employee? - Answers✔RME, Responsible Managing
Employee
How many hours is an RME, Responsible Managing Employee required to work. - Answers✔80% or 32
hours
How many licenses can an Owner or Qualifying Partner qualify for at a time. - Answers✔3
How may licenses can an RME or RMO qualify for at a time? - Answers✔1
Can you lend your license to someone? - Answers✔No. That would be punishable by law.
Can you abandon a project without a legal excuse? - Answers✔No. This would be cause for disciplinary
action. It is classified as "Breach of Contract".
A contractor is not prohibited from taking and executing a contract involving the use of two or more
crafts or trades, if the performance of the work is _____ and supplemental to the primary job. -
Answers✔Incidental and supplemental to the primary job. Otherwise it must be performed by a sub.
Can you use funds from one project to finish another? - Answers✔No. This falls under the category of
Larceny and is a misdemeanor or felony.
Is it a crime to use false or misleading advertising? - Answers✔Yes. It is a misdemeanor.
What is a joint venture license? - Answers✔Two or more qualifiers of different licenses who seek to
combine their licenses and expertise for a specific project.
How long is a joint venture valid for? - Answers✔2 years after first given.
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