Hiring an unlicensed contractor - or one whose license has lapsed, isn't bonded, or doesn't carry workers' compensation insurance - is one of the most common and costly mistakes LA homeowners make. Here's exactly how to check, in under five minutes, before you sign anything.
Step 1: Look up the license on the CSLB website
Every contractor doing work over $500 (labor and materials combined) in California must be licensed by the Contractors State License Board (CSLB). Go to cslb.ca.gov and search by license number or business name.
Confirm these four things on the result page:
- Status: Active. Not "expired," "suspended," or "revoked."
- Classification matches the job. For a full remodel (multiple trades - plumbing, electrical, framing) you want a Class B (General Building Contractor) license. A "C" classification (like C-36 for plumbing) only covers that single trade.
- Bond is current. California requires an active $25,000 contractor's bond. The CSLB page shows the bond company and expiration date.
- Workers' compensation insurance is listed, if the contractor has employees. If a worker is injured on your property and the contractor has no workers' comp, you - the homeowner - can be held liable.
Step 2: Check for disclosable complaints or legal actions
The same CSLB page lists any disciplinary actions, citations, or unresolved complaints tied to the license. A clean record over several years is a meaningfully stronger signal than a slick website.
Step 3: Verify the business name matches
Confirm the license is held by the actual business you're hiring, not just an individual who "works with" a licensed company. Ask for the license number up front and check it yourself - don't rely on a business card or a screenshot.
Step 4: Ask for a Certificate of Insurance (COI)
Beyond the CSLB bond, ask the contractor's insurance broker to send you a COI directly, naming you as an "additional insured" for general liability. This is separate from the state bond and protects you if something is damaged during the project.
Step 5: Know the payment-schedule law
California law caps the maximum down payment a licensed contractor can legally request at 10% of the contract price or $1,000, whichever is less. If a contractor asks for more up front, that's a red flag regardless of how good their license looks.
Step 6: Ask who pulls the permits
A legitimately licensed contractor pulls permits under their own license. If a contractor asks you to pull permits as an "owner-builder" so they can avoid the paper trail, treat that as a serious warning sign.
Quick reference
| Check | Where | What "good" looks like |
|---|---|---|
| License status | cslb.ca.gov | Active |
| Classification | cslb.ca.gov | Class B for general remodeling |
| Bond | cslb.ca.gov | Active, $25,000 minimum |
| Workers' comp | cslb.ca.gov | Listed and current (if they have employees) |
| General liability | Direct COI request | Certificate naming you as additional insured |
| Down payment | Your contract | 10% of contract or $1,000, whichever is less |
| Permits | Direct question | Contractor pulls them, not you |
New Cali Construction holds CSLB license #1008892 (General Building, Class B), active since 2014, bonded and insured - you can verify all of it yourself at cslb.ca.gov before you ever call us. We serve Culver City and the greater Westside of Los Angeles.