CALIFORNIA STATE
CONTRACTORS LICENSE LAW
AND BUSINESS TEST QUESTIONS
AND ANSWERS 2026
Who must be licensed as a contractor? - Correct Answer-
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. -
Correct Answer-18
What are the types of licenses issued. - Correct Answer-
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? - Correct Answer-No
What charge is it to contract without a license? - Correct
Answer-Misdemeanor, meaning potential jail time, fines
and administrative fines
Are there educational requirements to obtain a contractors
license? - Correct Answer-No
, 2
Can technical training and apprenticeship training
substitute the required training required for the 4 years
needed. - Correct Answer-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? - Correct Answer-Yes
What are the total fees I must pay to obtain a contractor
license? - Correct Answer-$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? - Correct
Answer-every two years
Will I receive notice before my active license expires? -
Correct Answer-Yes. 60 days, but remember it is your
responsibility to know and renew without being reminded.
What is the active license renewal fee? - Correct Answer-
$360. You are required to renew every two years.
Is there a fee for renewing an active license - Correct
Answer-$180.
, 3
Inactive licenses must be renewed how often? - Correct
Answer-Every four years
What is the minimum operating capital that you must have
to qualify to be a contractor? - Correct Answer-$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? - Correct
Answer-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. - Correct
Answer-Apply for a new one.
Can your old license be renewed? - Correct Answer-Yes.
If your license has been expired between 3 to 5 years.
Another name for the qualifier. - Correct Answer-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? -
Correct Answer-The owner
What is the qualifier called if he or she is a partner? -
Correct Answer-Qualifying Partner.