How do I start a contracting business?
Learn how to become a licensed contractor in Sonoma County.
✨ Contractor's License Checklist ✨
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State Requirements - Contractors License Exam
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🏗️ Set up your business
📝 Business plan
Your business plan communicates what your business does, your vision for the future, and the steps you will take to reach those objectives. Generally, the business plan should include:
- An executive summary
- A marketing plan
- An operations plan
- The proposed organizational structure
- Financial projections
🚧 Business structure
Your business structure should be set up by the time you are ready to fill out the Contractors State License Board application.
You have probably heard the terms sole proprietorship, general partnership, limited partnership, and type C or S corporation. The determination to form a company under a particular structure has much to do with the business activity, location, and organization.
The legal structure of the business will dictate many of the entity's operational functions and tax liability, entrepreneurs are encouraged to seek legal advice when considering these choices.
For more information, see our page on Business Structure.
✍️ Register your business
Register your business correctly with the California Secretary of State (SOS). This should be done after you determine the most appropriate operating structure for your business and have determined its name. Sole proprietors do not need to register, but corporations, limited liability company, and partnerships must file with the SOS.
You may also need to register with the Employment Development Department (EDD) if you plan on hiring employees. An employer is required to file a Registration Form within 15 days after paying more than $100 wages to one or more employees.
💸 Income taxes
As a business owner, you are required to pay state and federal taxes on your business every year.
For federal taxes, you will need to apply for an Employer Identification Number (EIN).
For state taxes, you will need file with the California State Tax Franchise Board.
✅ State Requirements - Application
All contractors in the state of California must be licensed by the California Department of Consumer Affairs Contractors State License Board (CSLB). The CSLB reviews applications, administers exams, and renews licenses for all general and specialized contractors.
Check out the CSLB's official guide to becoming a licensed contractor.
✔️ Minimum requirements
There are no specific education requirements involved in procuring your Contractor's License, but you must:
- Be at least 18 years old
- Have a Social Security number or Individual Taxpayer Identification Number
- Be able to demonstrate 4 years of experience at the level of:
- Journeyman
- Foreman
- Supervisor
- Owner-builder
In certain cases, specialized training or an approved apprenticeship can substitute up to 3 years of experience.
👍 Verify your work experience
As part of your application to become a Licensed Contractor in California, you will need to have your previous work experience certified by a "qualified and responsible person," including your employer, supervisor, fellow employee, etc.
📬 Submit application for original contractor license
Be sure to carefully read all instructions with the application, as any inaccuracies or unanswered questions can delay the process. Remember to include your certification of work experience with your application.
There are currently 3 ways to complete this form:
- Easy-Fill: Fill out the form on your computer, then print and mail it to the CSLB with the appropriate fee.
- PDF: Print a blank form, then fill it out and mail it to the CSLB with the appropriate fee.
- Order: Receive a blank form by mail, then fill it out and mail it to CSLB with the appropriate fee.
Once you submit your application, and pay the initial application fee, you will receive a letter of acknowledgment from the CSLB that contains a nine-digit application fee number and a four-digit personal identification number (PIN) that you may use to check on the status of your application on the CSLB website.
✋ Fingerprinting and background checks
Under California state law, all applicants or a contractor license are required to submit fingerprints for a background check.
After your application has been accepted (or "posted") by CSLB, each individual listed on the application who needs to be electronically fingerprinted at a Live Scan location. To submit your fingerprints for the background check, you must:
- Complete the CSLB's Request for Live Scan Service form (mailed to you after acceptance)
- Go to the Live Scan location with the completed form from above and a driver's license (or other identification).
- Ensure the Live Scan technician enters your name in the system exactly as it is on file with the CSLB.
- Ensure the Live Scan technician enters your social security number correctly in the system (if applicable)
Fingerprints will be submitted (to both the Department of Justice and the Federal Bureau of Investigation) before the application will be fully processed by the CSLB.
🏆 State Requirements - Contractor's License Examination
📅 Schedule your Contractor's License Examination
You are responsible for scheduling your own exam after your application is approved. This can be done online or by calling (877) 392-6422.
Once your application has been approved and referred for testing, the Notice to Schedule for Examination will be mailed to you with detailed information regarding the self-scheduling of your exam through PSI Exams. You can sign up for your exam appointment online or by telephone at (877) 392-6422.
📚 Prepare for the exam
The Contractor's License Examination has 2 parts:
- Law and Business exam
- Trade/certification-specific exam
There are many resources available to help you study for each part of the exam:
- CLSB study guides
- California Contractors License Law & Reference Book
- North Coast Builders Exchange classes
📝Exam format
On test day, remember to bring a valid government ID! The exam is 3.5 hours long and consists of multiple choice questions. You will take the test on a computer at the testing location.
🍎 After the exam
Upon successful completion of the examination, applicants must submit the following, plus any additional information or documentation requested by CSLB.
- $200-350 initial license fee
- Submit a Contractor's Bond or cash deposit in the amount of $25,000
- Submit proof of Worker's Compensation insurance. If you have no employees, you will be allowed to submit an exemption certificate.
A Contractor's Bond is a monetary assurance by a company to the State of California that it will pay damages if the contractor violates contractors' state license law.
If your business is an LLC, there may be additional financial requirements for licensure.
🤕 State Requirements - Worker's Compensation Insurance
If you employ anyone (besides yourself), you will need to provide CSLB with a valid Certificate of Workers' Compensation Insurance or a valid Certification of Self -Insurance from the Department of Industrial relations.
All CSLB licensees must do one of two things for workers' compensation:
- Provide CSLB with a valid Certificate of Workers' Compensation Insurance or Self-Insurance
- Provide CSLB with signed exemption, certifying that they have no employees
If you plan to have employees, you will need to submit proof of Worker's Compensation Insurance.
If you will be operating without employees, you may be exempt from this requirement. You can file for a Worker's Compensation Exemption Certificate with the CSLB.
Workers' compensation insurance provides basic benefits for employees if they are injured in the workplace. These benefits include medical care, disability benefits, job displacement benefits, and death benefits.
This exemption is not available to contractors applying for or holding a license in any of the following classifications:
- C-8 Concrete
- C-20 Warm-Air Heating, Ventilating, and Air Conditioning
- C-22 Asbestos Abatement
- C-39 Roofing
- C-61/D-49 Tree Service
Joint ventures entities are excluded from this provision.
☑️ Local Requirements
As a contractor in Sonoma County, you will become familiar with the different planning and building departments.
| Jurisdiction Website | Phone |
| County of Sonoma (unincorporated) | (707) 565-1900 |
| Cloverdale | (707) 894-1726 |
| Cotati | (707) 665-3636 |
| Healdsburg | (707) 431-3348 |
| Petaluma | (707) 778-4470 |
| Rohnert Park | (707) 588-2231 |
| Santa Rosa | (707) 543-3200 x2 |
| Sebastopol | (707) 823-6167 |
| Sonoma | (707) 938-3681 |
| Windsor | (707) 838-1021 |