Short answer: in California, anyone who bids or performs construction work worth $1,000 or more in labor and materials — or any work that needs a building permit, or any job where they hire help — must hold an active license from the Contractors State License Board (CSLB). Checking takes two minutes on the CSLB website, and it is the most useful thing you can do before signing a remodeling contract.

This guide explains what to check, what the license record tells you, and the contract rules California sets for home improvement projects. It summarizes state law and CSLB guidance; the sources are listed at the end.

When a License Is Required

Since January 1, 2025, the "minor work" exception lets an unlicensed person take on a job only if the total price, including labor and materials, is under $1,000, and no building permit is required, and they do not employ anyone to help (AB 2622, amending Business and Professions Code §7048). Before 2025 the limit was $500. An unlicensed person who advertises small jobs must say in the advertisement that they are not licensed.

Splitting a larger project into several small invoices does not avoid the rule — the limit applies to the whole project. In practice, anything involving permits, structural work, electrical, plumbing, roofing or an addition requires a licensed contractor.

How to Check a License

  1. Ask for the contractor's license number. Licensed contractors must include it in their contracts, bids and advertising.
  2. Look it up with the "Check a License" tool at cslb.ca.gov. You can also search by business or personal name.
  3. Confirm the name on the license matches the company on your contract.
  4. Read the whole record, not just the word "Active" (see below).

As an example, EC Construction Group's license number is 1132619 — you can look it up the same way you would for any contractor you are considering.

What the License Record Tells You

  • Status: active, expired, suspended or revoked. Only an active license allows the contractor to work.
  • Classification: what kind of work the license covers. "B" (General Building) covers projects involving two or more unrelated trades; "B-2" (Residential Remodeling) covers remodeling projects in existing homes that involve three or more unrelated non-structural trades; specialty "C" licenses cover single trades such as C-10 electrical, C-36 plumbing, C-20 HVAC, C-39 roofing, C-46 solar, C-53 swimming pools, C-27 landscaping and C-8 concrete. Make sure the classification matches your project.
  • Bond: California requires a $25,000 contractor's bond (since January 1, 2023). The record shows the bonding company and dates.
  • Workers' compensation: the record shows whether the contractor has a workers' compensation policy or has certified that it has no employees. If a contractor says it has no employees but sends a crew, ask why. Roofing contractors (C-39) must carry workers' compensation regardless.
  • Disciplinary history: public complaints that led to legal action, and citations, appear on the record.

Salespeople who sell home improvement work on a contractor's behalf must be registered with CSLB as Home Improvement Salespersons; their registration can be checked on the same site.

Rules for Home Improvement Contracts

For home improvement work over $500, California requires a written contract with specific terms and notices (Business and Professions Code §7159). Before you sign, check that the contract includes:

  • the contractor's name, business address and license number;
  • a description of the work and the materials and equipment to be used;
  • the contract price, a payment schedule tied to the work, and approximate start and completion dates;
  • a notice of your right to cancel: three business days for most home improvement contracts, and five business days if you are 65 or older;
  • the required mechanics lien warning, which explains how unpaid subcontractors or suppliers could place a lien on your home and how lien releases protect you.

Down payment limit: the down payment may not be more than 10% of the contract price or $1,000, whichever is less (§7159.5). Progress payments: after that, payments may not get ahead of the work actually completed and the materials actually delivered. A contractor asking for a large deposit to "lock in" a start date is asking for something the law does not allow.

Change orders must also be in writing and signed, stating the change in scope and price. Keeping every change in writing is the simplest way to avoid disputes at the end of a project.

Insurance: What to Ask For

  • Workers' compensation certificate — if an uninsured worker is hurt on your property, you may be treated as the employer.
  • General liability certificate — ask for it to be sent by the insurer or agent, and check the policy dates cover your project.
  • Your own homeowner's policy — tell your insurer about major work; some policies have conditions for vacant or under-construction homes.

Red Flags

  • No license number, or a number that belongs to a different business name.
  • Pressure to sign the same day, or a request for a cash-only or oversized deposit.
  • A suggestion to skip permits "to save money" — unpermitted work can complicate insurance claims and a future sale.
  • A verbal-only agreement or a one-page estimate presented as the contract.
  • A bid far below the others with a vague scope — the missing items usually reappear as change orders.

Questions to Ask Before You Hire

  • Who will be on site every day, and who is my single point of contact?
  • Which parts of the work are done by your own crew, and which by subcontractors? Are they licensed for that trade?
  • Who pulls the permits and schedules the inspections?
  • How are unforeseen conditions (for example, damage found behind walls) priced and approved?
  • What warranty applies to workmanship, and what do the manufacturers cover? Ask for both in writing.

Our process page explains how we handle estimates, permits and scheduling, and our remodel planning guide covers scope and budgeting before you collect bids.

Next Step

If you are collecting bids for a kitchen, bathroom or whole-home remodel, we are glad to be one of them. Request a free estimate and check our license before we arrive.

Sources

  • Contractors State License Board (CSLB): "Check a License"; AB 2622 press release and industry bulletin (December 2024) — cslb.ca.gov
  • California Business and Professions Code §7048 (minor work exception, as amended by AB 2622, effective January 1, 2025), §7159 (home improvement contract requirements) and §7159.5 (down payment and progress payment limits) — leginfo.legislature.ca.gov
  • SB 607 (2021): contractor's bond increased to $25,000, effective January 1, 2023