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Who needs a
Contractor License?
All
businesses or individuals who construct or alter any building, highway, road,
parking facility, railroad, excavation, or other structure in California must be
licensed by the California Contractors State License Board (CSLB) if the total
cost (labor and materials) of one or more contracts on the project is $500 or
more.
Contractors including subcontractors, specialty contractors, and persons
engaged in the business of home improvement must be licensed before submitting
bids.
Licenses may be issued to individuals, partnerships, corporations, or
joint ventures.
Why should I be Licensed?
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It's illegal for any contractor to take on a job worth a
total of $500 or more (including labor and materials), without a Contractor
License.
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It's illegal for any contractor to advertise without
listing their California State Contractor License number in the ad.
It must be included when advertising in any medium or form such as the
following: newspapers, flyers, business cards, all contracts, or any written
estimates or bids.
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If convicted of operating without a
Contractor License maximum penalties could
range from $3,000 - $15,000 and may include jail time.
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What are the advantages of a
Contractor License?
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Financial
Independence - Be your own boss! Make more
money! Start your own business, and enjoy the
benefits. You can also use your license for part-time work
to provide additional income.
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Payment
for your work - Being a Licensed Contractor means guaranteed payment for your work
through Mechanics Lien Rights.
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Business
Loans - Being a Licensed Contractor helps enable you to qualify for small business
loans.
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Discounts
- Get your materials and supplies at discount rates.
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Tax
Breaks - Write-off your trucks, home office, tools, gas, and other
expenses.
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Protection
- Being a Licensed Contractor and working legally will provide you with more financial
security. You will never have to worry about losing a job to a Licensed
Contractor, or paying unexpected fines and penalties.
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Bigger
Jobs - Having your Contractor License will
"open doors" for opportunity and success,
allowing you to bid on larger and more profitable
jobs for various types of commercial, residential,
and government projects.
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More
Contacts - Larger construction companies use
other Licensed Contractors regularly for their
numerous projects. With your license in hand, you
can introduce yourself to other contractor's you
may want to work with and develop lucrative
business relationships.
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Professional Prestige
-The average consumer knows the importance of hiring a Licensed Contractor. The media warns the public to hire only
Licensed Contractors to avoid scams and disreputable individuals. Being a
Licensed Contractor tells your customers that you are a true professional
- knowledgeable, responsible, and credible in the construction field.
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