CSLB C10 Test 1 | 120 Questions and Answers (2024 /
2025) (Verified Answers)
A person may serve as the qualifying individual for no more than three (3) firms in any
one-year period - ANSWER
SOLE OWNERSHIP LICENSE, your qualifier may be either an RME or you, the owner -
ANSWER Business income is reported as personal income; not transferable
PARTNERSHIP LICENSE, your qualifier may either be one of the general partners
(who shall be designated as the qualifying partner) or an RME - ANSWER Uses the
financial and personal resources of two or more individuals who share in the owning
and running of the business. It's easily established requiring only the registration of the
business name if one of the people leaves they must request a one year continuance
license
CORPORATE LICENSE, your qualifier may be either one if the officers listed in CSLB
Records for your license or an RME - ANSWER SEPARATE LEGAL ENTITY created
by the government. May raise capital by selling stock to private investors or to the
public; 90 days if you add one person
LIMITED LIABILITY COMPANY LICENSE your qualifier may be a responsible
managing member, responsible managing manager, RMO or RME - ANSWER Hybrid
of a partnership and a corporation. It's owners are shielded from personal liability and all
profits and losses pass directly to the owners without taxation of the entity itself. LLC is
owned by its members; 90 days
Yes. It is your responsibility to file a contractor license bond valued at $15,000 or
equivalent cash deposit with the registrar - ANSWER
If you have a limited liability company license, a separate $100,000 surety bond is
required for the benefit of an employee or worker damaged - ANSWER
Most bonds are issued for a period of one (1) to three (3) years - ANSWER
All contractors are required to present proof of workers compensation insurance
coverage as a condition of licensure or to maintain an active license - ANSWER
How long is a license valid? - ANSWER Two years from the last day of the month in
which it was issued
License renewed - ANSWER Every 2 years if renewed on an active status or for four
years if renewed inactive status
2025) (Verified Answers)
A person may serve as the qualifying individual for no more than three (3) firms in any
one-year period - ANSWER
SOLE OWNERSHIP LICENSE, your qualifier may be either an RME or you, the owner -
ANSWER Business income is reported as personal income; not transferable
PARTNERSHIP LICENSE, your qualifier may either be one of the general partners
(who shall be designated as the qualifying partner) or an RME - ANSWER Uses the
financial and personal resources of two or more individuals who share in the owning
and running of the business. It's easily established requiring only the registration of the
business name if one of the people leaves they must request a one year continuance
license
CORPORATE LICENSE, your qualifier may be either one if the officers listed in CSLB
Records for your license or an RME - ANSWER SEPARATE LEGAL ENTITY created
by the government. May raise capital by selling stock to private investors or to the
public; 90 days if you add one person
LIMITED LIABILITY COMPANY LICENSE your qualifier may be a responsible
managing member, responsible managing manager, RMO or RME - ANSWER Hybrid
of a partnership and a corporation. It's owners are shielded from personal liability and all
profits and losses pass directly to the owners without taxation of the entity itself. LLC is
owned by its members; 90 days
Yes. It is your responsibility to file a contractor license bond valued at $15,000 or
equivalent cash deposit with the registrar - ANSWER
If you have a limited liability company license, a separate $100,000 surety bond is
required for the benefit of an employee or worker damaged - ANSWER
Most bonds are issued for a period of one (1) to three (3) years - ANSWER
All contractors are required to present proof of workers compensation insurance
coverage as a condition of licensure or to maintain an active license - ANSWER
How long is a license valid? - ANSWER Two years from the last day of the month in
which it was issued
License renewed - ANSWER Every 2 years if renewed on an active status or for four
years if renewed inactive status
