CSLB Law & Business ExamBusiness Organization and LicensingEasy
A sole owner applying for a C-10 electrical contractor license asks about the bond required before the license can be issued. What is the standard contractor's license bond amount required by the CSLB for most licensees?
- A$12,500
- B$100,000
- C$15,000
- D$25,000
Show answer & explanationAnswer & explanation
Correct answer: D. $25,000
California law requires all active contractor licenses to file a $25,000 contractor's license bond (or cash deposit) before the license is issued or renewed. This bond protects consumers, subcontractors, employees, and material suppliers.
Why the other options are wrong
- A. This is the amount of the Bond of Qualifying Individual (BQI), a different bond.
- B. This is the LLC employee/worker bond amount, not the standard license bond.
- C. Not a bond amount used by CSLB.
Contractor's License Bond
A $25,000 surety bond required for all active CSLB licenses to protect the public against certain licensee violations.
- Amount is $25,000 for all standard licenses
- Filed with the CSLB before license issuance
- Different from the LLC bond and the Bond of Qualifying Individual
Memory trick: 'Twenty-five for the license to thrive.'