Who this applies to
Anyone holding a license from the Contractors State License Board (CSLB) needs a contractor's bond on file, and the amount is fixed at $25,000 [1]. It is not a one-time filing: the board requires the bond before it issues a license and keeps requiring it at reinstatement, reactivation, renewal and for as long as the license is maintained [1].
Two situations add a second bond on top of that one.
- A qualifier who is not an owner. When the person qualifying the license is neither the proprietor, a general partner nor a joint licensee, that qualifying individual files a bond of their own, also $25,000 [2]. The statute carves out, among others, a responsible managing officer who owns at least 10% of the corporation's voting stock and an LLC qualifying member holding at least 10% of the membership interest [2].
- Limited liability companies. An LLC license carries a $100,000 surety bond [3] in addition to, not instead of, the $25,000 contractor's bond [1]. It exists for workers the company fails to pay: wages, interest on wages and fringe benefits, and welfare and pension contributions owed to parties to a collective bargaining agreement [3].
What the rule says
Section 7071.6 turns the bond into a standing condition of the license itself. The wording runs continuously: an applicant or licensee must "file or have on file" the bond for each of the events the section lists, from first issuance to continued maintenance. The bond is filed with the CSLB and runs for the benefit of the people section 7071.5 of the Business and Professions Code names, which is why a lapsed bond is a licensing problem, not a paperwork detail.
How to comply
- Confirm which bonds your license structure triggers. A sole owner who qualifies their own license needs the contractor's bond alone. A license qualified through a non-owner needs the qualifier's bond as well. An LLC needs the $100,000 worker bond [3] in every case.
- Have the bond filed with the CSLB before you apply, renew or reactivate, and keep it in force between renewals: the requirement covers "continued maintenance" of the license, not only the day it is issued.
- Check the board's current forms and filing instructions at cslb.ca.gov, and read the section that applies to you in the Sources below before you rely on this summary.
The bond amount is set by statute; what you pay a surety for it each year is not. Our cost calculator applies the rate ranges surety agencies publish to California's bond amount, as an estimate rather than a quote.
What changed recently
The $25,000 contractor's bond amount has been operative since January 1, 2023: section 7071.6 was repealed and reenacted by SB 607 (Stats. 2021, ch. 367), effective January 1, 2022 and operative a year later [1]. The qualifying individual's bond section was last amended by SB 1455 (Stats. 2024, ch. 485), effective January 1, 2025 [2]. The LLC worker bond dates from SB 392 (Stats. 2010, ch. 698), effective January 1, 2011 [3].
Related
- Contractor license bond cost calculator: California's bond amount with published premium ranges applied.
- Contractor license bond requirements in every state: the full table, with the statute behind each figure.