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Those who are caught contracting without a license likely will have to appear before a Superior Court judge to answer to misdemeanor charges that can carry a potential sentence of up to six months in jail and/or a $5,000 fine, as well as an administrative fine of $200 to $15,000.
A contractor's license is not necessary as long as you don't advertise yourself as a licensed contractor and never contract for jobs costing $500 or more, including labor and materials. There are serious penalties for unlicensed contracting and the Contractors State License Board (CSLB) seriously pursues violators.
California Law Requires All Contractors to Have Licenses Additionally, it is illegal for a general contractor to hire an unlicensed subcontractor, and ?Entering into a contract with a contractor while such contractor is unlicensed . . .
Reporting Unlicensed Activity The best way to let CSLB know about unlicensed activity on an active job site is by completing the SWIFT Lead Referral form.
A contract between any contractor and an unlicensed subcontractor is a misdemeanor. Lack of a license bars all actions in law or in equity for collection of compensation for the performance of work requiring a license. There are very few exceptions to this rule.