California LLC Employee / Worker Bond Requirements
Applicants for a California contractor license whose company is registered as an LLC have to obtain a California LLC employee/worker bond.
The state Contractors State License Board requires a $100,000 bond. This requirement is only for LLCs, in addition to posting the regular contractor license bond needed for the licensing.
Bryant Surety Bonds is licensed to provide all types of California contractor license bonds and LLC employee/worker bonds. You can start your bonding process by completing our online application form to receive your free quote.
Do you have to get surety bonds for participating in a construction project? You can consult our in-depth contract bonds page for a complete overview.
How Much Does a California LLC Employee / Worker Bond Cost?
The required bond amount is $100,000. Your surety bond cost is a fraction of this amount.
The price is determined by the surety when you apply, primarily based on your personal credit score. Applicants with a high credit score of 700 FICO or above can expect to get a rate between 1% to 2% of the total bond amount.
See the table below for a ballpark estimate of the cost of your bond based on your credit score.
| California LLC Employee / Worker Bond Costs | |||||
| License type | Bond Amount | Surety Bond Cost by Credit Score | |||
| Above 700 | 650-699 | 600-649 | Below 599 | ||
| California contractor license - LLCs | $100,000 | $1,000-$2,000 | $1,500-$3,000 | $2,000-$4,000 | $3,000-$5,000 |
Your bond cost is also affected by the following factors:
- Personal and business finances
- Fixed and liquid assets
- Professional experience
For a detailed overview of the bond price formation, you can consult our surety bond cost guide.
California LLC Contractors
All California contractors who apply with an LLC company have to get bonded under the California Business and Professions Code, Section 7071.6.5. The CSLB has set the amount of the California LLC employee/worker bond to $100,000.
The bond has to be written in favor of the State of California and for the benefit of any employee who may be damaged due to your failure as an employer to pay wages, interest on wages, or fringe benefits. The LLC employee/worker bond thus protects workers employed by an LLC.
If you’re a party to a collective bargaining agreement, the bond should also cover welfare fund contributions, pension fund contributions, and apprentice program contributions.
The term of the bond is two years, similar to the CSLB license’s term.
California Contractor Licensing Requirements for LLCs
In addition to meeting the requirements for all California contractor license applicants, if your company is an LLC, you’ll also have to provide the following:
- Liability insurance with a cumulative limit of at least $1 million for licensees with five or fewer persons listed as personnel of record, plus an additional $100,000 is required for each additional member of the personnel of record, not exceeding $5 million total
- List of your personnel of record
- Registration of a qualifying individual
- $1 million personal liability during a potential Secretary of State suspension
- Proof of meeting the LLC business name style requirements
- Specific liability insurance information to be included in the contractor’s contracts
You can consult the full list of requirements for California LLC contractor applicants.
