Moving to California as a residential contractor: every state's rule
California has reciprocity agreements with 1 state. Everyone else follows its standard out-of-state path: experience credit.
California residential contractor · “B-2 Residential Remodeling Contractor (Class B General Building also covers homes)”
Statewide license
Issued by Contractors State License Board
California licenses residential contractors statewide through the Contractors State License Board (CSLB), and the homes-only classification is B-2 Residential Remodeling Contractor, created by Business and Professions Code section 7057.5 and issued since January 1, 2021. A B-2 contractor improves an existing residential wood frame structure and may only take a contract that requires at least three unrelated building trades or crafts; it cannot make structural changes to load-bearing parts of a building such as footings, foundations, load-bearing walls or roof structures, and it cannot install, replace or extend electrical, mechanical or plumbing systems unless it holds the matching specialty classification or subcontracts that work. A Class B General Building license also covers houses, including new construction and structural remodeling, so many residential builders apply for B instead of or as well as B-2. CSLB issues the license to a business (sole owner, partnership, corporation, limited liability company or joint venture) and the person who meets the experience and examination requirements is named on it as the qualifying individual, a responsible managing employee (RME) or responsible managing officer (RMO), so the reader who is moving states applies as that qualifier. A contractor license from another state cannot be used in California, even as a subcontractor or for a single project, and any project worth $1,000 or more in labor and materials, or any project needing a permit or workers, requires a CSLB license. Cities and counties separately require a local business tax registration, which is an additional step and not a substitute for the state license.
States California reciprocates with
Every origin state
| State | Mechanism | Note | Verified |
|---|---|---|---|
| Alabama | Experience credit | 2026-09-17 | |
| Alaska | Experience credit | 2026-09-17 | |
| Arizona | No credit | explicit agreement | 2026-09-17 |
| Arkansas | Experience credit | 2026-09-17 | |
| Colorado | No credit | no state license to transfer | 2026-09-17 |
| Connecticut | Experience credit | 2026-09-17 | |
| Delaware | Experience credit | 2026-09-17 | |
| District of Columbia | Experience credit | 2026-09-17 | |
| Florida | Experience credit | 2026-09-17 | |
| Georgia | Experience credit | 2026-09-17 | |
| Hawaii | Experience credit | 2026-09-17 | |
| Idaho | Experience credit | 2026-09-17 | |
| Illinois | No credit | no state license to transfer | 2026-09-17 |
| Indiana | No credit | no state license to transfer | 2026-09-17 |
| Iowa | Experience credit | 2026-09-17 | |
| Kansas | No credit | no state license to transfer | 2026-09-17 |
| Kentucky | No credit | no state license to transfer | 2026-09-17 |
| Louisiana | No credit | explicit agreement | 2026-09-17 |
| Maine | No credit | no state license to transfer | 2026-09-17 |
| Maryland | Experience credit | 2026-09-17 | |
| Massachusetts | Experience credit | 2026-09-17 | |
| Michigan | Experience credit | 2026-09-17 | |
| Minnesota | Experience credit | 2026-09-17 | |
| Mississippi | No credit | explicit agreement | 2026-09-17 |
| Missouri | No credit | no state license to transfer | 2026-09-17 |
| Montana | Experience credit | 2026-09-17 | |
| Nebraska | Experience credit | 2026-09-17 | |
| Nevada | No credit | explicit agreement | 2026-09-17 |
| New Hampshire | No credit | no state license to transfer | 2026-09-17 |
| New Jersey | Experience credit | 2026-09-17 | |
| New Mexico | Experience credit | 2026-09-17 | |
| New York | No credit | no state license to transfer | 2026-09-17 |
| North Carolina | Reciprocity | explicit agreement | 2026-09-17 |
| North Dakota | Experience credit | 2026-09-17 | |
| Ohio | No credit | no state license to transfer | 2026-09-17 |
| Oklahoma | No credit | no state license to transfer | 2026-09-17 |
| Oregon | Experience credit | 2026-09-17 | |
| Pennsylvania | Experience credit | 2026-09-17 | |
| Rhode Island | Experience credit | 2026-09-17 | |
| South Carolina | Experience credit | 2026-09-17 | |
| South Dakota | No credit | no state license to transfer | 2026-09-17 |
| Tennessee | Experience credit | 2026-09-17 | |
| Texas | No credit | no state license to transfer | 2026-09-17 |
| Utah | Experience credit | 2026-09-17 | |
| Vermont | Experience credit | 2026-09-17 | |
| Virginia | Experience credit | 2026-09-17 | |
| Washington | Experience credit | 2026-09-17 | |
| West Virginia | Experience credit | 2026-09-17 | |
| Wisconsin | Experience credit | 2026-09-17 | |
| Wyoming | No credit | no state license to transfer | 2026-09-17 |
Getting licensed in California from scratch
No license yet, or nothing that transfers? This is how California issues a residential contractor license to a first-time applicant.
Original contractor's license by examination, B-2 Residential Remodeling classification
CSLB issues the B-2 license to a business, which can be you as a sole owner, and the person with the experience is named on it as the qualifying individual: the owner, a partner, a responsible managing officer or a responsible managing employee. To qualify you must be at least 18 and have four years of journey-level, foreman, supervisor or contractor experience in residential remodeling within the last 10 years, certified by people who saw the work; there is no education requirement, and apprenticeship or college credit can replace up to three of the years. You file the Application for Original Contractor's License with the $450 fee, get fingerprinted, and then pass two closed-book, multiple-choice exams at PSI: the Law and Business exam and the B-2 trade exam, each paid to PSI and each with a 3.5-hour limit. After passing you file the $25,000 contractor's bond, workers' compensation proof or exemption and the initial license fee, and CSLB issues the license. No lower California license is needed first.
A B-2 contractor works on existing residential wood frame structures, on contracts that need at least three unrelated trades, and cannot do structural work on load-bearing parts or install electrical, plumbing or mechanical systems without the matching specialty license. Anyone who also wants new home construction or structural work applies for the B General Building classification instead; an examination applicant applies for one classification at a time and adds others after the license is issued. The B-2 trade exam covers planning and estimating (15%), job site preparation (13%), core trades remodeling (25%), finish trades remodeling (18%), exterior remodeling (13%) and safety (16%). CSLB does not publish a fixed passing score because it varies by exam; PSI tells you the required percentage at the test site. You have 18 months from the date CSLB accepts the application to pass both exams, you must wait 21 days after a failed attempt, and a passed exam stays valid for five years. Someone who has served as qualifier for the same classification on a California license, or passed both exams within the past five years, may not need to test again. CSLB runs an expedited program for military veterans that evaluates military training and experience. Cities and counties also require their own business license or tax registration. Licensing Information Center: (800) 321-CSLB (2752).
- Trade exam
- Required
- Law / code exam
- Required
- Exam given by
- PSI
- Exam format
- Closed book
- Renewal
- Every 2 years
Who can apply
- You must document at least 4 years of qualifying work experience.Credit is given only for experience at journey level or as a foreman, supervising employee, contractor or owner-builder; helper, laborer and apprentice time does not count. Each period is certified on the Certification of Work Experience form by someone who observed the work, such as an employer, fellow worker, contractor, union representative, building inspector, architect, engineer or client, and CSLB may ask for documents to back it up. Owner-builder work also needs a project list for each project. Experience as a licensed contractor in another state counts, provided it was gained lawfully there.
- Be at least 18 years old.
- A Social Security number or Individual Taxpayer Identification Number. A responsible managing employee must work for the business at least 32 hours a week, or 80 percent of its operating hours if less, and may qualify only one active license.
Other ways to qualify
Each of these replaces the requirements above. You only need one.
Completed apprenticeship plus one year of practical experience
CSLB credits up to three of the four years for a Certificate of Completion of Apprenticeship from an accredited program, or a union's certified statement of completed apprenticeship training, in the classification applied for. At least one year must still be practical journey-level experience, and the certificate is sent with the application.
- Complete a registered apprenticeship: Completed apprenticeship in the classification applied for, documented by a Certificate of Completion of Apprenticeship or a union's certified statement.
- You must document at least 1 year of qualifying work experience.
- Be at least 18 years old.
College degree credit plus the remaining practical experience
Official sealed transcripts can replace part of the four years: up to three years for a four-year degree in construction technology or management or in engineering directly related to the classification, up to two years for a four-year degree in accounting, business, economics, mathematics, physics or a related field (architecture counts for the B classification only) or for a law degree, and up to one and a half years for an associate degree in building or construction management. The rest of the four years, and never less than one year, must be practical journey-level experience. High school coursework earns no credit.
- Four-year degree in construction technology or management, or in engineering directly related to the classification, shown by official sealed transcripts (credited as up to three years)
- You must document at least 1 year of qualifying work experience.
- Be at least 18 years old.
Steps to get licensed
- 1Application fee. Pay the application fee ($450). Non-refundable $450 application processing fee, mailed with the Application for Original Contractor's License and the Certification of Work Experience forms. Do not send the bond or license fee with the application. If you do not pass both exams within 18 months of acceptance, the application is void and you must reapply with new fees..
- 2Law / code exam. Pass a law, rules, or code exam. CSLB Law and Business examination (PSI): multiple choice, closed book, 3.5 hours, covering business organization and licensing, business finances, employment requirements, insurance and liens, contracts, public works and safety. It can also be taken at PSI centers in 18 other states..
- 3Trade exam. Pass the destination's trade exam. B-2 Residential Remodeling trade examination (PSI): multiple choice, closed book, 3.5 hours, taken at a PSI center in California or in Wilsonville, Oregon..
- 4Exam fee. Pay the exam fee ($51.43). PSI fee for the Law and Business examination, $51.43 per attempt, paid to PSI when you schedule. Not refundable; forfeited if you cancel less than two days ahead or miss the appointment..
- 5Exam fee. Pay the exam fee ($51.43). PSI fee for the B-2 trade examination, $51.43 per attempt, paid to PSI when you schedule..
- 6License fee. Pay the license or certificate fee ($200). Initial license fee of $200 for a sole owner, or $350 for any other business type, paid only after you pass the examinations, when CSLB sends its bond and fee letter. It covers the first two years. With the $450 application fee, CSLB's own total for one classification is $650 for a sole owner and $800 for a non-sole owner, before PSI and fingerprinting fees..
- 7Background check. Complete a background check. Criminal background check by Live Scan fingerprinting, done after CSLB accepts the application. Paid to the Live Scan operator: $32 to the California Department of Justice and $17 to the FBI, plus a rolling fee that each site sets..
- 8Other. CSLB's asbestos open-book examination, completed free on CSLB's website and returned before the license can be issued (Business and Professions Code section 7058.5). It is an awareness exam and does not certify you to do asbestos work..
- 9Surety bond. Post a surety bond ($25,000). $25,000 contractor's bond, or a $25,000 cashier's check, filed after you pass the examinations and before the license is issued as active. Buy the bond from a surety licensed by the California Department of Insurance..
- 10Surety bond. Post a surety bond ($25,000) (if applicable). $25,000 bond of qualifying individual, required when you qualify the license as a responsible managing employee, or as a responsible managing officer who owns less than 10 percent of the company's voting stock or equity..
- 11Surety bond. Post a surety bond ($100,000) (if applicable). $100,000 employee/worker bond, in addition to the contractor's bond, required only when the license is held by a limited liability company..
- 12Insurance. Carry the required insurance ($1,000,000) (if applicable). Liability insurance of at least $1,000,000, rising by $100,000 for each person of record above five up to $5,000,000, required only when the license is held by a limited liability company..
- 13Insurance. Carry the required insurance. Workers' compensation insurance, or a Department of Industrial Relations certificate of self-insurance, if the business has employees; a business with no employees files an exemption instead. An exemption is not accepted when the license is qualified by a responsible managing employee, because an RME is an employee..
- 14Business license. Obtain a business license. CSLB issues the license to the business: a sole owner, partnership, corporation, limited liability company or joint venture. Corporations and LLCs must be registered with the California Secretary of State first, and every officer, member or partner is listed on the application..
Published fees on this path total $752.86, excluding exam-vendor fees, bonds, and insurance.
Keeping it active
Every 2 years and a $450 renewal fee.
The first license runs two years from the last day of the month it was issued, and active licenses then renew every two years; the $450 fee is for a sole owner, and other business types pay $700. Renewing late costs $675 or $1,050. CSLB's renewal instructions list no continuing education requirement; each renewal includes a workers' compensation recertification.
Exam preparation
Most boards contract PSI, Prov, or ICC for exams. Check which code edition the exam is written to before buying a prep course.
- Law / code exam
- Trade exam
- Exam fee · $51.43
- Exam fee · $51.43
Surety bond
A license or contractor bond is bought from a surety, not the state. Price is a small percentage of the bond amount and depends on your credit.
- Surety bond · $25,000
- Surety bond · $25,000 · if applicable
- Surety bond · $100,000 · if applicable
Liability insurance
Some states require proof of general liability or workers' compensation coverage at licensing time.
- Insurance · $1,000,000 · if applicable
- Insurance
Business registration
If you plan to contract in your own name, budget for a business license or entity registration on top of the trade license.
- Business license
Sources for this section
- California Business and Professions Code Sec. 7068 - Qualification of applicants; responsible managing employee; out-of-state experience · Cal. Bus. & Prof. Code Sec. 7068 · California Legislative Information (Office of Legislative Counsel) · Statute · verified September 17, 2026
- CSLB - Application for Original Contractors License · Cal. Bus. & Prof. Code Sec. 7065, 7065.1, 7065.2 · Contractors State License Board · Agency Page · verified September 23, 2026
- CSLB - Bond Requirements · Cal. Bus. & Prof. Code Sec. 7071.6, 7071.8, 7071.9 · Contractors State License Board · Agency Page · verified September 17, 2026
- CSLB - B-2 Residential Remodeling Contractor classification · Cal. Bus. & Prof. Code Sec. 7057.5 · Contractors State License Board · Agency Page · verified September 17, 2026
- CSLB - Apply for a Contractors License - Exam Required (Steps 1-9) · Contractors State License Board · Agency Page · verified September 23, 2026
- CSLB - Step 3: Qualifying Experience for the Examination · Contractors State License Board · Agency Page · verified September 23, 2026
- CSLB - Examinations Frequently Asked Questions · Contractors State License Board · Faq · verified September 23, 2026
- CSLB - List of All CSLB Fees · Contractors State License Board · Agency Page · verified September 23, 2026
- CSLB - Get Licensed to Build: A Guide to Becoming a Licensed Contractor (May 2025) · Contractors State License Board · Other · verified September 23, 2026
- CSLB - Frequently Asked Questions About Journey-level Experience · Contractors State License Board · Faq · verified September 17, 2026
- CSLB - Licenses for Limited Liability Companies (LLC) · Cal. Bus. & Prof. Code Sec. 7065, 7071.6.5, 7071.19, 7076.2 · Contractors State License Board · Agency Page · verified September 17, 2026
- CSLB - Renew Your License, Step 1: General Renewal Information · Contractors State License Board · Agency Page · verified September 23, 2026
- PSI - Contractors State License Board Licensing Examination Information Guide: Residential Remodeling (B-2) · PSI Services LLC for the Contractors State License Board · Form · verified September 23, 2026
- PSI - Contractors State License Board Licensing Examination Information Guide: Law and Business · PSI Services LLC for the Contractors State License Board · Form · verified September 23, 2026