In some states, general contractors need a license before bidding for high-paying jobs. This ensures that they can run their businesses with integrity and ethics.

If you’re planning to get your own contracting business, you should consider licensing to expand your construction capabilities and increase your client base.

License Requirements

Contractors in California typically need licenses to practice their trade and bid on high-paying jobs. Obtaining a permit can take time, depending on your state.

A degree in a related field can help you get licensed. Those with bachelor’s degrees can typically become licensed in four years, while those with master’s degrees may take closer to seven years to achieve their license.

Some states also have reciprocal agreements that streamline the licensing process for out-of-state contractors. If you’re working in more than one state, you should check with each of them to ensure you meet the license requirements for each jurisdiction.

Most states require contractors to register for tax-specific identification numbers, and businesses with employees must carry workers’ compensation insurance. In addition, some states also require general contractors to purchase surety bonds. These bonds are meant to protect both the contractor and the project owner.


Before you can start working on construction projects, you must have the proper California Contractor Licensing. The costs of these licenses vary from state to state, but they are essential for protecting your clients and employees.

A contractor license is a certificate that allows you to perform construction work on private or public properties in a specific jurisdiction. It can be obtained by completing the relevant licensing requirements, such as passing an exam or paying fees.

Some states also require you to purchase a surety bond. This protects your clients from financial loss if your work is outside local regulations and building codes.

Before working on any construction project, you must have the appropriate contractor licenses and a surety bond. These will allow you to complete your job confidently and help you avoid costly penalties or lawsuits.

Requirements for Surety Bonds

Contractors need to have several types of surety bonds in place to be legally licensed. These include permit bonds, payment bonds and performance bonds.

In many cases, these bonds are required by government agencies and industry regulators to ensure that a contractor will complete their work on time and within budget. The exact requirements for these bonds vary by state.

When a contractor applies for a bond, they must provide the surety company with their past employment history and other details about their business. This process can take up to four weeks.

Another critical factor in determining the amount of bond you can obtain is your bonding capacity. This is based on your working capital, cash flow and managerial experience. The more successful your business is, the higher your bonding capacity will be.

Experience Requirements

To be a licensed contractor, you must prove that you have the right experience. There are several ways to obtain the expertise you need, including working under a licensed contractor or becoming a journeyman.

In addition, you should work with a licensed specialist to determine which license your experience qualifies you for. This will save you time and money in the long run.

If you have questions about which license your experience will qualify you for, click here to sign up for a consultation call with a Contractor Training Center specialist. This call is free and will help you get a suitable license for your business.