General Contractor Permits & Licenses in Los Angeles, California

License number must be clearly displayed on all advertising, vehicles, and business premises. Applies to all licensed contractors.

Includes tax returns, invoices, receipts, and supporting documents. Applies to sales tax, LLC tax, and other state tax filings.

Required posters include notices on minimum wage, workers' comp, sexual harassment prevention, and anti-discrimination. Must be visible to employees in English and other languages if needed.

Includes payroll records, timecards, wage statements, and I-9 forms. Must be available for inspection by labor authorities.

Required for all LLCs. Online filing available via bizfile.sos.ca.gov. Statement of Information (Form LLC-12) due within 90 days of formation ($20), then biennially ($20).

Required for all LLCs.

Required for any construction work over $500. Prerequisites: 4 years journey-level experience or equivalent; exam (Law & Trade); contractor must qualify license (can be LLC member); bond $25,000; workers' comp insurance or exemption. Apply at https://www.cslb.ca.gov/OnlineServices/ApplyForLicense/LicenseApplication.aspx.

Discipline Free Bond ($25,000) required for all licensed contractors.

Must submit proof to CSLB. Exemption Form A (sole owner) or B (LLC owners) at https://www.dir.ca.gov/dwc/WorkersCompRights/Exemptions.html.

File in every county where business is conducted. SOS provides forms/guidance; actual filing at county level. Check county recorder websites (e.g., LA County: https://www.lavote.gov/home/county-clerk/fictitious-business-names).

Many general contractors need this for material sales. Register online at https://www.cdtfa.ca.gov/services.htm.

General Contractors structured as LLCs with pass-through income must make estimated tax payments if net income generates tax liability. Payments cover income and self-employment taxes.

General contractors may need a seller's permit if they sell materials as part of construction contracts. The CDTFA considers 'lump-sum' contracts to include taxable materials. See BOE-400 instructions for details.

LLCs in California are pass-through entities by default. Owners report income on personal returns. However, all LLCs must file Form 568 (LLC Return of Income) annually. Foreign LLCs doing business in CA must also register.

Required for all employers in California. Employers must withhold state income tax from employee wages and remit to EDD. Registration is done via Form DE 1, available online through EDD’s Employer Portal.

Employers must pay UI tax on first $7,000 of each employee’s wages annually. New employers pay 3.4% (2024 rate). Registration is part of DE 1 submission via EDD.

All LLCs doing business in California must pay an $800 minimum franchise tax annually, regardless of revenue. Additionally, LLCs with gross revenue over $250,000 pay a fee on a sliding scale. Due with Form 568.

Most California cities require a business license or tax registration. Examples: Los Angeles Business Tax Registration ($100+), San Diego Business Tax Certificate. Check local city/county websites. Contractors may face additional zoning or permit requirements.

California does not impose a general excise tax, tourism tax, or contractor-specific tax beyond sales tax and franchise tax. However, contractors must comply with sales tax on materials and equipment. No separate industry-specific tax exists for general contractors.

Required for all businesses; general contractors must specify NAICS code 236220

General contractors classified under Group C (Contractors); fee schedule effective 1/1/2024

General contractors must comply with zoning; home occupation limits construction storage/vehicles

Required for structural changes; plan check fees additional

Complies with Sign Ordinance (LAMC Sec. 91.6205); electronic signs extra fees

Required for spray painting, welding, or >100 gal flammable liquids

Mandatory for monitored systems in unincorporated areas

Verifies zoning and building code compliance

Mandatory for all businesses; required before local permits. Fictitious business name (DBA) filing also required if operating under a name other than legal entity.

Applies to contractors storing solvents, paints, or chemicals. Local fire permits do not replace CalEPA obligations.

Required for all employers in California with at least one employee under Labor Code §3700. Sole proprietors without employees are exempt but must still post notice. Coverage must be continuous.

A $15,000 surety bond is required to obtain or renew a contractor’s license under CSLB regulations. This bond protects consumers against violations of the Contractors License Law. Self-insurance or cash deposit alternatives allowed under CSLB Rule 864.

General liability insurance is NOT mandated by the CSLB for licensing but is often required by clients, municipalities, or project owners. It is considered essential for risk management. This is not a legal mandate at the state level but is standard industry practice.

Required under California Vehicle Code §16070–16079 for all vehicles used in business. Minimum liability coverage: $15,000 per person, $30,000 per accident for bodily injury, $5,000 for property damage (15/30/5). Higher limits often required for commercial fleets.

Not mandated by California law or CSLB for general contractors. However, may be required by clients, architects, or project contracts. Strongly recommended for design-build or high-risk construction work.

Under California Public Contract Code §22300–22310, contractors bidding on public works projects exceeding $25,000 must provide a payment and performance bond. The bond amount is typically 50% of the contract sum if under $500,000, or 100% if over. Enforced by awarding public agency.

Use Form 540-ES for individuals; LLCs with pass-through income report via owner's return. Estimated payments required if tax liability exceeds withholding.

Not a standalone legal mandate, but product liability coverage is part of general liability insurance. Required only if business sells or installs products that could cause injury. Not typically triggered for standard general contracting unless fabricating components.

Required only if contractor hosts events where alcohol is served. General contractors not involved in alcohol service are not subject. Mandated under ABC regulations for special event permits.

Even single-member LLCs without employees may need an EIN to open a business bank account or comply with state requirements. However, federally, it is only mandatory under specific conditions such as having employees or withholding taxes.

By default, a single-member LLC is disregarded for federal tax purposes and reports income on Schedule C of the owner's Form 1040. Multi-member LLCs are treated as partnerships and must file Form 1065. General Contractors must pay self-employment tax on net earnings via Schedule SE. Income is subject to federal income tax and self-employment tax (15.3%).

General Contractors must comply with OSHA's construction standards (29 CFR 1926), including fall protection, scaffolding, electrical safety, and hazard communication. Employers with 11 or more employees must maintain OSHA Form 300 logs. All employers must report fatalities or hospitalizations within 8 and 24 hours, respectively.

General Contractors must ensure that new construction or alterations comply with ADA Standards for Accessible Design (28 CFR Part 36). This applies when building or renovating facilities such as stores, offices, or restaurants. Contractors are responsible for compliance during execution, even if the design was provided by others.

Contractors must be EPA-certified, use lead-safe work practices, provide EPA-approved educational materials, and maintain records for three years. Applies to all paid renovations involving lead-based paint hazards in residential or child-occupied facilities.

General Contractors must comply with OSHA and EPA regulations when asbestos is present. While AHERA primarily applies to schools, the EPA's worker protection rule extends to private sector construction. Contractors must ensure employees are trained and follow safe practices when asbestos may be disturbed during demolition or renovation.

General Contractors must comply with federal minimum wage ($7.25/hr, though California state law sets higher), overtime (1.5x regular rate after 40 hours), and child labor laws. Independent contractor classification must meet FLSA criteria to avoid misclassification penalties.

All employers, including General Contractors, must complete Form I-9 to verify identity and work authorization. Employers must retain forms for 3 years after hire or 1 year after employment ends, whichever is later. Subject to ICE audits.

General Contractors must display the OSHA Job Safety and Health – It's the Law poster (OSHA 3165) at all worksites. Available in English and Spanish from OSHA website. Required even for small contractors with one employee.

The FTC's Home Improvement Rule requires truthful advertising, prohibits misrepresentation, and mandates written contracts for home improvements. Contractors must not make false claims about licensing, materials, or pricing. Applies to door-to-door sales and telemarketing under the Telemarketing Sales Rule.

General Contractors on federal or federally assisted construction projects must pay laborers and mechanics no less than the locally prevailing wages and fringe benefits as determined by the DOL. Requires submission of WD-10 form and weekly payroll reporting (Form WH-347).

Mandatory reporting applies to all employers, including construction contractors. Reports can be made by phone, online, or in person. Applies regardless of company size.

All California LLCs must file a Statement of Information (Form LLC-12) every 2 years. The first filing is due within 90 days of formation, then every 2 years thereafter. Example: If formed in March 2023, next due March 31, 2025.

License must be renewed every 2 years. Contractors receive a renewal notice 60 days before expiration. Failure to renew within 90 days results in license cancellation.

Only applies to individuals holding the license (e.g., qualifier). Required courses include 1 hour of Laws & Regulations, 1 hour of Business & Legal, and 2 hours of Trade or Safety. Courses must be CSLB-certified.

All LLCs doing business in California must pay an $800 annual tax. First-year tax is prorated based on formation date. Due even if no business activity occurs.

Mandatory for all employers in California, including LLCs. Coverage must be continuous. Sole proprietors without employees may opt out.

Summarizes taxes paid to CDTFA. Not required if total tax paid was $100 or less.

General Contractors must maintain injury logs (Form 300), provide safety training, and allow inspections. Serious injuries must be reported within 8 hours.

Employers must provide Form DWC-1 to injured employees and file with insurer. Failure to report is a misdemeanor.

Federal Unemployment Tax Act (FUTA) tax applies to employers. Most pay reduced rate of 0.6% after state credit.

Reports income tax withholding, Social Security, and Medicare taxes. Required quarterly even if no wages paid.

DE 9 reports payroll and withholding. Employers also file DE 9C (Wage Detail) if required.

Provides detailed wage and tax data per employee. Required for all employers with employees in California.

All CSLB-licensed contractors must maintain a $15,000 surety bond (or higher for certain classifications). The bond must be on file with the CSLB and renewed every 2 years with license renewal.