CSLB Law & Business ExamBusiness Organization and LicensingEasy
A sole owner is applying for a new CSLB contractor's license in 2024. What is the current standard contractor's license bond amount required before a license can be issued?
- A$25,000
- B$12,500
- C$50,000
- D$15,000
Show answer & explanationAnswer & explanation
Correct answer: A. $25,000
The standard contractor's license bond was increased to $25,000, effective January 1, 2023, and applies to all active license classifications regardless of entity type.
Why the other options are wrong
- B. No such figure applies to the standard contractor's bond.
- C. This figure is too high and does not match CSLB's current requirement.
- D. This was the prior bond amount before the 2023 increase.
Contractor's License Bond Amount
A surety bond CSLB requires of every active licensee to protect consumers, employees, and the state from losses caused by the licensee's violations.
- Current amount is $25,000 (raised from $15,000 in 2023)
- Required for all active license classifications
- Separate from the bond of qualifying individual (BQI)
Memory trick: 'Twenty-Five for staying alive' — $25,000 keeps your active license valid.