California contractor licenses: the $1,000 rule and the trades that answer to other agencies

California sets a low bar. A job worth $1,000 or more needs a license, whether you call yourself a handyman, a landscaper or a contractor. This page covers what the state licenses, which agency owns each trade, and what stays unlicensed, as of October 2026. Nothing here is legal advice, so confirm with the agency before you take a job.

For the company side of getting started, see our California startup page. For how other states compare, see the licensing boards by state table and our guide to getting a contractor license.

What does the $1,000 rule actually cover?

The Contractors State License Board (CSLB) publishes a licensing guide that says any construction project valued at $1,000 or more in labor and materials combined must be performed by a licensed contractor. If the work requires a permit or workers, a license is required regardless of price. The same guide calls it illegal to divide a job into smaller parts to stay under $1,000, and says contractors, subcontractors, specialty contractors and people in the business of home improvement must be licensed before they submit bids.

The guide lists a short set of exemptions. They include work under $1,000 that needs no permit and no workers, public employees on public projects, and owner-builders who meet conditions such as living in the home for the 12 months before the work is complete and not acting as owner-builder on more than two structures in a three-year period.

License classifications: A, B, B-2, C and D

The CSLB issues licenses by classification. Class A is general engineering, Class B is general building (at least two unrelated trades), Class B-2 is residential remodeling of existing wood-frame structures with at least three unrelated trades, and Class C is specialty trades. Each classification needs a qualifier, and the board requires four years of verifiable experience as a skilled tradesperson in the trade being applied for.

Trades that matter to service businesses include C-27 Landscaping, C-33 Painting and Decorating, C-39 Roofing, C-20 Warm-Air Heating, Ventilating and Air-Conditioning, C-10 Electrical, C-36 Plumbing, C-28 Lock and Security Equipment and C-53 Swimming Pool. Solar work is limited to specific classifications, including A, B, C-10, C-36 and C-46 Solar. Several limited specialty D classifications exist, such as D-38 Sand and Water Blasting, D-63 Construction Cleanup and D-35 Pool and Spa Maintenance (C-61/D-35). The CSLB defines D-38 as using compressed air with abrasive materials or water to clean or prepare surfaces for protective, decorative or functional treatment. Whether routine house washing falls under that definition is worth a call to the board before you rely on any answer. The $1,000 line applies either way.

What the CSLB asks for before it issues a license

Fees are from the May 2025 version of the guide, so check the CSLB site for current amounts. The guide adds that licenses are issued for two years and that an inactive license may not bid or contract for work. If you plan to form an LLC, compare its extra bond with the cost lines in our LLC fees by state table.

Workers' compensation has its own trap. The CSLB says C-8 Concrete, C-20 HVAC, C-22 Asbestos Abatement, C-39 Roofing and C-61/D-49 Tree Service licensees must carry workers' compensation whether or not they have employees. Other licensees with no employees file an exemption.

Pest control and pesticide work have their own agencies

Structural pest control is licensed by the Structural Pest Control Board, not the CSLB. Its three branches are fumigation with lethal gases (Branch 1), household pests (Branch 2) and wood-destroying organisms (Branch 3). The board issues three license types. An Applicator may apply pesticides in Branches 2 and 3 only on behalf of a registered company. A Field Representative can secure work, inspect, bid and contract for a registered company. An Operator can do the same and can also own a company or serve as its qualifying manager. Only the Operator license lets you own the company, so a new pest control business starts there.

Gardeners have a different path through the Department of Pesticide Regulation. A Maintenance Gardener Pest Control Business license is required if you mow, clean up yards or tend plants and turf around public structures and commercial properties and occasionally apply pesticide as part of that for-hire business. If pest control is your main business, you need the full Pest Control Business license instead. As the department's packet (revised July 2024) lays out, you need a qualified person at each location holding a Qualified Applicator Certificate, and proof of financial responsibility. The minimums are $5,000 for a surety bond or certificate of deposit, or liability insurance of $5,000 bodily injury per person, $10,000 per occurrence and $5,000 property damage. See our pest control license guide for the national outline.

Other trades the state handles separately

Locksmith work is licensed by the Bureau of Security and Investigative Services (BSIS) under Business and Professions Code sections 6980 and following. The bureau's consumer guide says locksmith companies must be licensed and company employees registered, and tells consumers to check both. It adds that a project above a stated cost also requires a CSLB license (the bureau's guide is an older publication and says $500, while the CSLB's current line is $1,000), so a locksmith doing door or gate installation should confirm the current figure with both agencies.

The CSLB does not recognize contractor licenses from other states, per its guide. It has reciprocity agreements with some states under which the registrar may waive the trade exam, case by case, but every applicant still takes the law and business exam and certifies work experience.

What is left without a CSLB license, and what you still need

Under the CSLB guide's wording, a pure maintenance job below $1,000 with no permit and no workers falls outside the license requirement. Small routine services can sit under it. The moment you hire an employee, or the work needs a permit, or a single job runs to $1,000, the contractor rules apply. Many service businesses assume repeat visits are separate jobs. Ask the CSLB how it counts a recurring contract before you sign one.

The state's tax side also matters. The CDTFA says contractors on a lump sum contract are the consumers of the materials they install and pay tax on those costs, while time and material contracts can make the contractor a retailer of the materials. See our sales tax by state table. Cities and counties issue their own business licenses and tax certificates, so check each city you work in.

What happens if you contract without a license

The CSLB guide says contracting for work valued at $1,000 or more without a license can lead to misdemeanor charges. A first offense can bring up to six months in jail, a $5,000 fine, or both, along with potential administrative fines of $200 to $15,000. Later violations increase the penalties, and contracting without a license in a state or federal declared disaster area can be charged as a felony. Check this against the current statute, because penalty ranges are the part of licensing law most often amended.

Frequently asked questions