Requirements by business type
| Requirement | Sole proprietor | Corporation | LLC |
|---|---|---|---|
| Contractor license bond ($25,000) | Required | Required | Required |
| Workers' comp (C-39) | Required, even with no employees | Required, even with no employees | Required, even with no employees |
| Bond of qualifying individual ($25,000) | Only with an RME | If qualifier is an RME or an RMO with <10% ownership | If qualifier is an RME or an RMO with <10% ownership |
| Liability insurance | Not required by CSLB | Not required by CSLB | $1M–$5M required |
| Employee/worker bond ($100,000) | No | No | Required |
The roofing workers' comp rule
Most license classes can file an exemption with CSLB when they have no employees. Roofing is different. A C-39 license requires a current workers' compensation certificate on file, regardless of whether you have employees. Your carrier reports the policy to CSLB. If it cancels and no replacement is filed, the license is suspended until coverage is back in place.
If you hold C-39 alongside other classifications, the roofing rule applies to the whole license.
The $25,000 contractor license bond
Every active license needs a $25,000 contractor bond on file. The bond protects consumers and employees if you violate license law, fail to complete work or don't pay wages. It's priced mainly on the owner's credit. Alternatives include a cash deposit with CSLB, which ties up $25,000 and takes time to recover after the license is cancelled.
For a license bond, bond of qualifying individual or LLC worker bond, visit our bond site, CSLB-Bonds.com.
Additional rules for LLC licenses
LLCs carry two extra requirements beyond the license bond:
- Liability insurance
- At least $1,000,000 for five or fewer personnel of record, plus $100,000 for each additional person, up to $5,000,000 total.
- Worker bond
- A $100,000 employee/worker bond that protects workers if the LLC fails to pay wages or benefits.
When comparing a corporation to an LLC, include the cost of the higher liability limit and the extra bond.
The January 1, 2028 change
SB 216 originally required workers' comp for every license class by January 1, 2026. SB 1455 pushed that date to January 1, 2028. This change matters if you hold other classifications or hire specialty subcontractors. Your C-39 requirement is unchanged.
What homeowner contracts must say
California home improvement contracts carry required notices, including whether you carry commercial general liability insurance and workers' compensation. Homeowners and their lenders read these notices, so a roofer with GL in place is easier to hire.
Always confirm current requirements directly with CSLB before applying, renewing or changing your business structure.
Get a roofing insurance quote
One application, several markets that write roofing. Free review of your current policy.