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When does a job need a licensed contractor in California?

The $1,000 exemption from California's contractor license law, in Business and Professions Code §7048, applies only if all of these are true: the whole price, labor, materials and everything else included, is under $1,000; the work needs no building permit; it is not part of a larger job, and the work has not been divided into contracts of under $1,000 each, for whatever reason; the person does not advertise, or put out a sign, card or other device, that might tell the public they are a contractor or qualified to work as one; and the person does not employ anyone to do the work or help with it. The license law's other exemptions are in sections 7040 to 7054.5 of the same code. Humboldt Bay Construction Co. is licensed: #1137566, B, General Building.

The exemption applies only if all of these are true

  • The whole price, labor, materials and everything else included, is under $1,000.
  • The work needs no building permit.
  • It is not part of a larger job, and the work has not been divided into contracts of under $1,000 each, for whatever reason.
  • The person does not advertise, or put out a sign, card or other device, that might tell the public they are a contractor or qualified to work as one.
  • The person does not employ anyone to do the work or help with it.

Source: California Business and Professions Code §7048 (the $1,000 exemption)

Other exemptions

The license law's other exemptions are in sections 7040 to 7054.5 of the same code.

The $1,000 limit took effect on January 1, 2025.

Sources: California Business and Professions Code, sections 7040 to 7054.5 (exemptions from the contractor license law); Contractors State License Board: Handyperson Exemption to Increase to $1,000 in 2025

Last checked against the sources:

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