{
  "url": "https://scopeofcover.com/requirements/ca/llc-employee-worker-bond",
  "title": "California LLC Contractor License Bond and Insurance Rules",
  "template": "requirements",
  "published": "2026-10-06",
  "updated": "2026-10-06",
  "last_verified": "2026-10-06",
  "answer": "California LLC contractor licenses are subject to bond and insurance rules. The LLC Employee/Worker Bond is required for the issuance, reissuance, reinstatement, reactivation, and renewal of both active and inactive licenses. Scope of Cover found that, as of January 1, 2014, liability insurance policies for LLCs must come from insurers licensed by California or from eligible surplus line insurers. The specific requirement for the bond is located in Business and Professions Code section 7071.6.5.",
  "editor": {
    "name": "Eric Dawson",
    "title": "Editor"
  },
  "publisher": "scopeofcover.com",
  "claims": [
    {
      "claim_id": "ca-llc-employee-worker-bond-code",
      "statement": "The requirement for the LLC Employee/Worker Bond is specified in Business and Professions (B&P) Code section 7071.6.5.",
      "value": "7071.6.5",
      "unit": "section",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.cslb.ca.gov/about_us/llc.aspx",
      "quote": "(Business and Professions [B&P] Code section 7071.6.5)",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-llc-employee-worker-bond-active-inactive-licenses",
      "statement": "The LLC Employee/Worker Bond is required for the issuance, reissuance, reinstatement, reactivation, and renewal of both active and inactive LLC licenses.",
      "value": "issuance of both active and inactive licenses, reissuance, reinstatement, reactivation, and renewal",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.cslb.ca.gov/about_us/llc.aspx",
      "quote": "A $100,000 surety bond (in addition to the $25,000 contractor bond) is required for the issuance of both active and inactive licenses, reissuance, reinstatement, reactivation, and renewal of an LLC license for the benefit of any employee or worker damaged by the LLC’s failure to pay wages, interest",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-llc-liability-insurance-code",
      "statement": "The LLC liability insurance requirements are outlined in B&P Code section 7071.19.",
      "value": "7071.19",
      "unit": "section",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.cslb.ca.gov/about_us/llc.aspx",
      "quote": "(B&P Code section 7071.19)",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-llc-liability-insurance-insurer-licensing",
      "statement": "As of January 1, 2014, LLC liability insurance policies must be issued by insurers licensed by California or eligible surplus line insurers, according to B&P Code section 7071.19 (c).",
      "value": "7071.19 (c)",
      "unit": "section",
      "as_of": "2014-01-01",
      "jurisdiction": "CA",
      "source_url": "https://www.cslb.ca.gov/about_us/llc.aspx",
      "quote": "Beginning January 1, 2014, B&P Code section 7071.19 (c) required that LLC liability insurance policies be written by insurers that are \"duly licensed by this state or an eligible surplus line insurer.\"",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-llc-personnel-of-record",
      "statement": "Every officer, member, responsible manager, or director must be listed as personnel of record on LLC applications.",
      "value": "officer, member, responsible manager, or director",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.cslb.ca.gov/about_us/llc.aspx",
      "quote": "Every person who is an officer, member, responsible manager, or director must be listed as personnel of record on LLC applications.",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-llc-qualifying-individual",
      "statement": "LLC licenses must be qualified by a responsible managing employee (RME), responsible managing officer (RMO), responsible managing manager, or responsible managing member.",
      "value": "responsible managing employee (RME), responsible managing officer (RMO), responsible managing manager, or responsible managing member",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.cslb.ca.gov/about_us/llc.aspx",
      "quote": "LLC licenses must be qualified by a responsible managing employee (RME), responsible managing officer (RMO), responsible managing manager, or responsible managing member.",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-llc-personal-liability-suspension-code",
      "statement": "The personal liability for LLC members during license suspension is detailed in B&P Code section 7076.2.",
      "value": "7076.2",
      "unit": "section",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.cslb.ca.gov/about_us/llc.aspx",
      "quote": "(B&P Code section 7076.2)",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-llc-contract-insurance-info",
      "statement": "Specific general liability insurance information must be included in an LLC’s home improvement and service and repair contracts.",
      "value": "Specific general liability insurance information",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.cslb.ca.gov/about_us/llc.aspx",
      "quote": "Specific general liability insurance information is required to be included on the LLC’s home improvement and service and repair contracts.",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-llc-contract-insurance-info-codes",
      "statement": "The requirement for including liability insurance information on LLC contracts is specified in B&P Code sections 7159 and 7159.10.",
      "value": "7159 and 7159.10",
      "unit": "sections",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.cslb.ca.gov/about_us/llc.aspx",
      "quote": "(B&P Code sections 7159 and 7159.10)",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-llc-joint-venture-eligibility",
      "statement": "An LLC can be listed as an entity on a joint venture license.",
      "value": "listed as an entity on a joint venture license",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.cslb.ca.gov/about_us/llc.aspx",
      "quote": "An LLC may be listed as an entity on a joint venture license.",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-llc-partnership-general",
      "statement": "An LLC may act as a general partner on a partnership license if it fulfills the additional surety bond and liability insurance requirements.",
      "value": "general partner",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.cslb.ca.gov/about_us/llc.aspx",
      "quote": "LLCs may serve as a general partner on a partnership license provided the LLC meets the above requirements relating to the additional surety bond and liability insurance.",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-llc-partnership-limited-exemption",
      "statement": "An LLC serving as a limited partner on a partnership license is exempt from the additional surety bond and liability insurance requirements.",
      "value": "not required",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.cslb.ca.gov/about_us/llc.aspx",
      "quote": "An LLC serving as a limited partner on a partnership license is not required to meet the additional surety bond and liability insurance requirements.",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-llc-business-name-phrase-requirement",
      "statement": "The name of an LLC must end with \"Limited Liability Company\" or the abbreviation \"LLC\" or \"L.L.C.\".",
      "value": "Limited Liability Company\" or the abbreviation \"LLC\" or \"L.L.C.\"",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.cslb.ca.gov/about_us/llc.aspx",
      "quote": "The name of an LLC must end with the phrase \"Limited Liability Company\" or the abbreviation \"LLC\" or \"L.L.C.\"",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-llc-business-name-abbreviation-option",
      "statement": "The words \"Limited\" and \"Company\" in an LLC's name can be abbreviated to \"Ltd.\" and \"Co.\", respectively.",
      "value": "Ltd.\" and \"Co.\"",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.cslb.ca.gov/about_us/llc.aspx",
      "quote": "The words \"Limited\" and \"Company\" may be abbreviated to \"Ltd.\" and \"Co.,\" respectively.",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-llc-business-name-phrase-code",
      "statement": "The business name requirements for LLCs are stated in Corporations Code section 17701.08 (a).",
      "value": "17701.08 (a)",
      "unit": "section",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.cslb.ca.gov/about_us/llc.aspx",
      "quote": "(Corporations Code section 17701.08 (a))",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-llc-business-name-restricted-words-general",
      "statement": "An LLC's name cannot include the words \"bank,\" \"trust,\" \"trustee,\" \"incorporated,\" \"inc.,\" \"corporation,\" or \"corp.\".",
      "value": "bank,\" \"trust,\" \"trustee,\" \"incorporated,\" \"inc.,\" \"corporation,\" or \"corp.\"",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.cslb.ca.gov/about_us/llc.aspx",
      "quote": "The name of an LLC may not include the words \"bank,\" \"trust,\" \"trustee,\" \"incorporated,\" \"inc.,\" \"corporation,\" or \"corp.\"",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-llc-business-name-restricted-words-code",
      "statement": "The restrictions on LLC business names are specified in Corporations Code section 17701.08 (e).",
      "value": "17701.08 (e)",
      "unit": "section",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.cslb.ca.gov/about_us/llc.aspx",
      "quote": "(Corporations Code section 17701.08 (e))",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-llc-foreign-name-conformity",
      "statement": "A foreign LLC must adopt an alternative name that complies with Corporations Code section 17701.08 to transact intrastate business in California if its original name does not conform.",
      "value": "alternative name",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.cslb.ca.gov/about_us/llc.aspx",
      "quote": "If the name of a foreign (out-of-state or out-of-country) LLC does not conform to the requirements of Corporations Code section 17701.08, the foreign LLC must adopt an alternative name that complies with Section 17701.08 to transact intrastate business in this state.",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-llc-foreign-name-conformity-code",
      "statement": "The requirement for foreign LLC name conformity is found in Corporations Code section 17708.05.",
      "value": "17708.05",
      "unit": "section",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.cslb.ca.gov/about_us/llc.aspx",
      "quote": "(Corporations Code section 17708.05)",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-llc-license-requirements-sb392",
      "statement": "Senate Bill 392 (Statutes of 2010, Chapter 698) authorized the CSLB to issue contractor licenses to limited liability companies (LLCs).",
      "value": "Senate Bill 392 (Statutes of 2010, Chapter 698)",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.cslb.ca.gov/about_us/llc.aspx",
      "quote": "The passage of Senate Bill 392 (Statutes of 2010, Chapter 698) authorized CSLB to issue contractor licenses to limited liability companies (LLCs).",
      "retrieved": "2026-10-02"
    }
  ],
  "sources": [
    {
      "title": "CSLB: Limited liability companies",
      "url": "https://www.cslb.ca.gov/about_us/llc.aspx",
      "publisher": "Contractors State License Board",
      "retrieved": "2026-10-02"
    }
  ],
  "license": "CC BY 4.0. Attribute to Scope of Cover (https://scopeofcover.com/)."
}