How to Check a Contractor's License in California Before You Sign Anything

Hiring the wrong contractor is the most expensive mistake a homeowner can make. The good news is that California gives you a free, two-minute way to check anyone you are thinking of hiring. Here is exactly how to do it, what to look for, and the warning signs that should make you walk away.

Step 1: Get the license number in writing

Every licensed contractor in California has a license number issued by the Contractors State License Board (CSLB). The law requires contractors to put that number on their contracts, and most also show it on their website, business cards, trucks and ads. If someone cannot or will not give you a license number, stop there.

For example, Realco Home Remodeling's license number is 1061619. You can check it yourself using the steps below.

Step 2: Look it up on the CSLB website

Go to www.cslb.ca.gov and choose "Check a License." You can search by license number, business name or personal name. You can also call the CSLB at 800-321-CSLB (2752).

The license detail page shows you:

• Business information: the legal business name, any "doing business as" name, address and phone number. Make sure they match the company you are talking to.

• License status: whether the license is current and active, or expired, suspended or revoked.

• Classifications: the type of work the contractor is licensed to do.

• Bonding information: the contractor's license bond.

• Workers' compensation: whether the contractor carries workers' compensation insurance or is exempt because they have no employees.

Step 3: Match the classification to your project

A license is only useful if it covers your type of work. The most common classifications homeowners see are:

• B, General Building: for projects that involve multiple trades, such as kitchen and bathroom remodels, room additions, ADUs and whole-home renovations.

• C classifications (specialty): for single trades, such as C-10 Electrical or C-36 Plumbing.

If you are planning a remodel that involves framing, plumbing, electrical and finishes, a B General Building contractor can manage the whole job under one contract.

Step 4: Check the bond and workers' compensation

Since January 1, 2023, California requires a $25,000 contractor license bond. According to the CSLB, the bond is filed for the benefit of consumers who are damaged by defective construction or other license law violations, and for employees who are not paid wages they are owed. It is a basic protection, not full coverage for a large project.

Workers' compensation matters because a worker injured on your property could create problems for you if the contractor has employees and no coverage. If the license page says the contractor is exempt, ask who will be doing the work. Any subcontractors should have their own licenses, which you can look up the same way.

Step 5: Ask for proof of general liability insurance

The CSLB license page does not show general liability insurance. Ask the contractor for a certificate of insurance and call the insurance company listed on it to confirm the policy is active. General liability insurance helps cover damage to your property caused by the contractor's work.

When does a contractor need a license?

Starting January 1, 2025, California raised the "minor work" exemption from $500 to $1,000. An unlicensed person can only do a job under $1,000 (labor and materials combined) if the work does not need a permit and they do not hire anyone to help. If the job needs a permit, or if they bring workers, a license is required no matter how small the job is.

For any real remodel, you want a licensed contractor.

California rules that protect you in the contract

Once you have checked the license, these rules from the CSLB will help you review the contract:

• Get it in writing. Home improvement projects over $500 in combined labor and materials must have a written contract.

• Down payment limit. The down payment cannot be more than $1,000 or 10 percent of the contract price, whichever is less.

• Pay as work is done. Progress payments cannot be more than the value of the work already performed.

• Right to cancel. You generally have three business days to cancel a home improvement contract. If you are 65 or older, you have five business days.

• Salespeople must be registered. A salesperson cannot sign a home improvement contract for a contractor unless they are a CSLB-registered home improvement salesperson.

Red flags that should make you walk away

• The contractor asks for a large cash payment up front.

• The name on the license does not match the name on the contract or business card.

• The license is expired, suspended or under a different classification than your project needs.

• They suggest skipping permits to "save you money."

• They pressure you to sign the same day.

• They only give you a verbal estimate.

The bottom line

Checking a license takes two minutes and can save you thousands of dollars. Look up the license number, confirm the status and classification, check the bond and workers' compensation, and ask for proof of general liability insurance before you sign anything.

Realco Home Remodeling is a licensed general contractor (CSLB License No. 1061619, B General Building) with general liability insurance and over 20 years of experience serving Los Angeles and the surrounding area. If you are planning a kitchen, bathroom, ADU or whole-home remodel, call us at (818) 806-8173 or request a free estimate.

Sources

• Contractors State License Board, Home Improvement Contracts consumer guide (October 2024)

• Contractors State License Board, What Seniors Should Know

• Contractors State License Board, Bond Requirements

• Contractors State License Board, Industry Bulletin on AB 2622 (effective January 1, 2025)