Why do you need to be licensed to be a contractor?
Having a contractor’s license will do several things for your new business. First of all you’ll be able to advertise your contracting business with a license number that was given to you from your state. You can place this number on your business cards, yellow page ads or any form of advertising that you will be doing for your new business. This is one of the top things that a customer will ask of you when you’re doing a contracting job. If you are not licensed, odds are you won’t get the job. Also once you are licensed you will be able to get insurance. Have the proper insurance is also necessary and the home owner you are doing the work for will require you are properly insured.
Another great thing about having a contracting license is that you will be able to obtain discounts not typically offered to the public. Home building supply companies like Home Depot offer discounts for contractors since you typically purchase more supplies than the average person. If you are doing a large job, or multiple jobs at the same time, you'll want to purchase in bulk and save money.
Can I get More than one Type of Contractor License?
Yes. Most states will require you take a course called Law and Business in order to get your license. This course is taken by all contractors before they start learning more their specific trade. Law and Business reviews legal issues and areas that all contractors must know and understand regardless of the type of contracting business you have, this course is required by the state of California. Once you are finished with the course you start learning about the specific trade that you will be dealing with. A trade is your specialty. Trades include: General Building, roofing, landscaping, welding, masonry, electrical plus many more. Most contractors hold a license in many different trades so they are not limited to the types of jobs they can bid on. Be sure to check with the contracting school you are attending for all regulations.
Is contracting a good career move?
Yes. This is a great career and it allows you to have your own business and be your own boss. You set your own schedule on what jobs you would like to take. Many contractors that have their own business hire other contractors to help with the jobs. At this point in your career you mainly coordinate the jobs and hire contractors to complete the jobs.
How do I promote my contracting business?
Most contractors use the house-to-house approach when marketing their new contracting business. You can simply make up a flyer along with your business card and go house-to- house promoting your specialties. This is a very slow and time consuming method, but you need to be well branded in your area in order to gain referrals. You should be able to find a service in your area where you can provide your content to and they will go around in a particular area of town and hand out your material to home owners.
When advertising your contracting business you should also consider the yellow pages. The great thing about the yellow pages are they are very affordable and concentrate in the area where you wish to do business. Be real creative with your ad as you want it to stand out since other contractors will more than likely be advertising in the same book.
One great way to promote your new contracting business is to use internet companies. These types of sites allow contractors to advertise for a fixed fee. When you get a shopper that is interested in a service you provide, you will be given the lead. For example: Let’s say that a customer wants to build a brink wall in their backyard. If you tell
the internet site that you do masonry work then you would be sent the customers name, address and phone number so you could contact them directly and work out a deal. The prices range for each lead that is sent to you. Most leads will run you $10-25. This is an affordable way for you to talk to actual people that need work done.
How hard is the California Contractor State exam?
The state exam consists of 125 questions. The entire test is multiple choice A,B,C or D answers. There are no writing questions on the test, only multiple choice. The test is a timed test but you will have enough time to finish if you pace yourself and don’t spend tons of time on each question. The test that you take 80+% of the questions will be about your trade, the rest can be general questions.
After I take my test how long do I have to wait until I get my license?
This really depends on how busy the state is with licenses. I have seen it take as little as 3 weeks to 3-5 months. We typically tell people that you should receive something in 1-2 months on average.
Do I need to be a corporation in California once I get my license to open up my own business?
Great question and it really depends on your unique situation. Are you going into business by yourself or with a partner? Do you plan on having multiple employees or just a few? Are you good with paperwork and accounting or would you rather leave this up to someone else. The reason for all the questions is that every situation is different. I can tell you some of the pros and cons of each one. In California to open up a C-Corp it is fairly easy. I suggest calling a tax accountant or attorney that specializes in setting up these accounts. It will save you time and it will be done correctly. Having a corporation to run your contracting business is a good idea as you want to have the corporation take all the liability. If something happens and you get sued then the can lose everything that is in your corporation but they can’t go after your personal assets such as your house (in most cases). If you have a partner then you and your partner share ownership in the company. LLC’s are very common because they are also easy to set up. Once you have decided which ones to do you need someone to take care of your books. Sounds easy but unless you are very skilled and have the time this can be a major headache. We recommend a low end accountant that you can pay on a monthly basis to reconcile all of your bills, pay your state sales taxes, do payroll and file your quarterly taxes (both state and federal). This can be accomplished for little money and give you time to run your business. Most small businesses fail because too much time is spent on everything but actually running and growing your business. Our suggestion is that once you have your license sit down and at minimum become a LLC to protect yourself and then see how things go. You can always go up to a C-Corp at a later date.
How do I check to see that status of a contractor of even find a license number?
The California Contractors state page is a great place to find tons of useful information both on how to get your license but also a great resource for finding contractors. The great thing about this is if you want to work with other contractors of once you have a license if you want to check others you can find what your looking for below.
Click here to check by the Contractor's business name
Click here to check by their license number
Click here to check by Personnel name
Is there an age requirement to be a contractor?
In the state of California you must be 18 years of age or older to be a licensed contractor.
Types of State Approved Licenses from the California Contractors License Board. Check with the contracting school you are attending to see if they have the license that you are needing.
A - General Engineering
B – General Building
C-2 Insulation and Acoustical
C-4 Boiler, Hot Water Heating and Steam Fitting
C-5 Framing and Rough Carpentry
C-6 Cabinet, Millwork and Finish Carpentry
C-7 Low Voltage Systems
C-8 Concrete
C-9 Drywall
C-10 Electrical
C-11 Elevator
C-12 Earthwork and Paving
C-13 Fencing
C-15 Flooring and Floor Covering
C-16 Fire Protection
C-17 Glazing
C-20 Warm-Air Heating, Ventilating and Air Conditioning
C-21 Building Moving and Demolition
C-23 Ornamental Metal
C-27 Landscaping
C-28 Lock and Security Equipment
C-29 Masonry
C-31 Construction Zone Traffic Control
C-32 Parking and Highway Improvement
C-33 Painting and Decorating
C-34 Pipeline
C-35 Lathing and Plastering
C-36 Plumbing
C-38 Refrigeration
C-39 Roofing
C-42 Sanitation System
C-43 Sheet Metal
C-45 Electrical Sign
C-46 Solar
C-47 General Manufactured Housing
C-50 Reinforcing Steel
C-51 Structural Steel
C-53 Swimming Pool
C-54 Ceramic and Mosaic Tile
C-55 Water Conditioning
C-57 Well Drilling
C-60 Welding
ASB Asbestos Abatement Certification
HAZ Hazardous Substances Removal Certification
Law Law and Business
State Board Numbers for California
State licensing board #: Contractors State Licensing Board - 9821 Business Park Drive - Sacramento CA. 95827
Architects: California Board of Architectural Examiners - 1021 O St. Rm. A-102 - Sacramento CA. 94244-2580
Landscaping: State Board of Landscape Architects - 400 R. St. Ste. 4020 - Sacramento CA. 95814
Real Estate Appraisal: Office of Real Estate Appraisers - P.O. Box 94274-0001.
List of all California Contractor Courses
Success Story:
Being born and raised here in California I know how important contractors are to the state. Regardless of what type of contractor you are it seems like there is always work to be found if you are licensed and a hard worker. That was my main problem 5 years ago when I started my contracting career. I ended up working for a small 5 member team laying brickwork and cement for odd jobs. The pay wasn’t that great and the hours were long. It didn’t take me long to realize that working isn’t where the money is, but owning the business and having others work for you was. I enrolled in a California contractor school and studies to pass my state exam in 3 different areas. I continued to work for another company until I saved up enough money to start my own company. Today my family and I are sole owners of a 10 member crew that services Orange Country, CA. We do custom brink work and stucco for new homes. My only regret is that I didn’t get my license 10 years ago, who knows how much more successful I’d be. For those of you interested in becoming a contractor it is super easy. Don’t stress out about the state exam as I barely studied and passed it with flying colors. I actually owe all of that to the course I took. I found a school that had the easiest study materials in all of my 3 disciplines and took the time to help me when I got stuck. The hardest think about everything was to really just decide you want to change and get started.
Ted F. Santa Fe.
