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However, contracting without a license in California doesn't provide many opportunities. An unlicensed contractor can only be hired for projects that are less than $500, including labor and materials, so making a living without a license will be a challenge.
Under California Contractor's State License Law, an unlicensed contractor may not bring or maintain any action for compensation for performing any act or contract for which a license is required unless the contractor was duly licensed at all times during performance.
The California Contractor's State License Law protects homeowners against unlicensed contractors. It is illegal for an unlicensed person to perform contracting work on any project valued at $500 or more in combined labor and material costs.
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.
Is Hiring an Unlicensed Contractor in California Illegal? The California Contractor's State License Law protects homeowners against unlicensed contractors. It is illegal for an unlicensed person to perform contracting work on any project valued at $500 or more in combined labor and material costs.