Established in 1929, the Contractors State License Board — or CSLB — establishes the rules and regulations that California contractors must follow. Contractors engaging in construction work in California must have an active CSLB license. Unfortunately, it can be easy for contractors to forget to perform a CSLB license check and can renew their license as needed. The team at ServiceBox has put together this guide to explain why, when, and how you need to renew your CSLB license.

Why is a CSLB License Check Important

Contractors in California cannot engage in contracting work in California legally without a CSLB license. Attempting to do so is dangerous for both contractors and their clients. Acquiring a license involves several legal requirements, ensuring that clients are protected if they suffer harm due to construction defects. These requirements also protect workers from issues such as unpaid wages.

If contractors fail to routinely check the status of their CSLB license, their license may lapse, leaving them unable to engage in construction work and bringing their business to a standstill. Such contractors also risk being held liable for non-compliance and any other issues that result from their unlicensed contracting work.

What Factors Impact the CSLB License Renewal Process

The CSLB license renewal process starts by engaging with one of several renewal opportunities and processes that are presented by the Contractors State License Board. These options include online renewal or renewal by phone or mail. Many factors impact why, when, and how contractors should renew their CSLB license as well as which options are available to them. It is important to consider these factors when beginning the license renewal process.

License Activation Status

The first factor to take into consideration is the activation status of a contractor's license. Simply possessing a license doesn't mean that it is active. Activating a license requires a contractor to file a contractor's bond or cashier's check in the amount of $15,000 and, under certain conditions, may also require the contractor to file a bond of individual in the amount of $12,500.

The licenses of contractors who have not completed these steps are considered inactive. Contractors with licenses that are currently inactive are not legally allowed to engage in any contracting work until they submit an application for reactivation and pay the required fee for reactivating their account.

Active License

If a contractor's license is active, their license will expire every two years. These contractors will receive a renewal application from the Contractors State License Board approximately 60 days before their license's expiration date at the business address listed on the license. If a contractor doesn't receive a renewal application at least 45 days before their license's expiration date, it is their responsibility to complete their renewal online or by phone before the expiration date.

CSLB license renewals are subject to varying fees. Sole owner active license renewals cost contractors $450, while non-sole owner active license renewals cost contractors $700. If a sole owner completes a renewal late, the active license renewal fee increases to $675. If a non-sole owner completes a license renewal late, the active license renewal fee increases to $1,050. In all active license cases, electrician class licensees pay an extra $20 for their CSLB license renewal.

Inactive License

If a contractor's license is inactive, their license will expire every four years. Contractors with inactive licenses will be subject to many of the same processes as those with active licenses. They will receive a license renewal application from the Contractors State License Board approximately 60 days before their license's expiration date and are responsible for completing the renewal online or by phone should the application not arrive at least 45 days before license expiration.

However, the fees associated with inactive license renewal are significantly lower than they are for contractors attempting to renew active licenses. Sole owner inactive license renewals cost contractors just $300, while non-sole owner inactive license renewals cost contractors $500. If a sole owner renews their license late, the inactive license renewal fee increases to $450. If a non-sole owner renews late the inactive license renewal fee increases to $750. In all inactive license cases, there are no additional fees.

How to Check Your CSLB License Status

Contractors can check their CSLB license status using the Contractors State License Board's online lookup tool on a computer, phone, tablet, or similar electronic device. Contractors must enter their license number into the tool and it will produce their license information. Contractors can find their license number on their physical CSLB license.

Contractors should make sure not to input any alphanumeric characters into the lookup tool and their license number should be no more than eight digits. While rarely an issue, contractors should also be careful to avoid waiting to use the tool between the hours of Sunday at 8 p.m. and Monday at 6 a.m. The CSLB license database is unavailable during that period due to routine maintenance, rendering the tool ineffective.

How To Renew Your CSLB License

Contractors seeking to renew their CSLB license can do so by completing the form that the Contractors State License Board sends to their business address. The form is also available on the CSLB website where it can be filled out digitally, downloaded and printed to be filled out by hand, or ordered to arrive by mail to be filled out by hand.

The renewal form must be completed and signed by specific personnel, which can vary based on the structure of the company to whom the licensee belongs. The owner must sign for sole owner license renewals, an officer listed on the renewal must sign for a corporation, and an officer, manager, or member listed on the renewal must sign for limited liability corporation license renewals. Contractors must mail the completed form to CSLB headquarters at P.O. Box 26000 in Sacramento, CA.

Renewing your CSLB license can be challenging, but it doesn't have to be. Get in touch with ServiceBox today for help with renewing your CSLB license!

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