Menu

California Launch Plan

Your First 30 Days as a New California Contractor

Do not launch from a filing receipt alone. Verify the entity, CSLB license, bond, insurance, tax, local permit, payroll, and advertising systems that apply.

Days 1-5: lock the legal foundation

  1. Confirm the exact legal name and ownership record in California bizfile.
  2. Complete the applicable Statement of Information requirement.
  3. Open dedicated business banking and bookkeeping.
  4. Record every government and tax identifier by issuing agency.
  5. Write the exact services and job types the company will sell.

Days 6-10: verify contractor authority

Match services to CSLB's current classification scope. Confirm the qualifier, $25,000 contractor bond, any qualifier bond, workers' compensation information, and active license status in the public lookup. An LLC also needs the separate $100,000 employee/worker bond and liability insurance starting at $1 million for five or fewer personnel of record.

Before the first bid: CSLB says covered contractors must be licensed before bidding. Do not advertise a pending application as an active license.

Days 11-15: permits, tax, and payroll

Use GO-Biz permit assistance and CalGOLD to identify state and local requirements, then confirm each with the issuing agency. Register applicable CDTFA accounts based on actual transactions.

If hiring, use EDD's employer resources to register and set up electronic filing and payment. EDD says new or rehired employees who work in California must be reported within 20 days of the start date. It also requires electronic employment tax returns, wage reports, and payroll tax deposits, subject to its waiver process.

Days 16-20: contracts and field controls

  • Use California-appropriate written contracts and change orders.
  • Set estimate, deposit, invoice, collection, and refund workflows.
  • Build job folders for permits, photos, time, materials, and customer approvals.
  • Set safety, vehicle, tool, and incident procedures.
  • Verify subcontractor licenses and insurance before scheduling.

Days 21-25: compliant marketing

Use the license number and exact licensed name where CSLB requires them. Keep every advertised service within the active classification. Do not claim the company is “bonded” as a quality endorsement; CSLB's advertising guide prohibits that representation. Verify vehicle-lettering and home-improvement advertising rules before launch.

Days 26-30: run the first operating review

  1. Reconcile bank, card, invoices, and deposits.
  2. Review job-cost and gross-profit results.
  3. Confirm tax and payroll due dates are calendared.
  4. Audit open bids for classification and permit fit.
  5. Check the public CSLB and entity records again.
  6. List missing documents, owners, and deadlines.
  7. Schedule monthly compliance and financial reviews.

Frequently asked questions

Can I split a job under $1,000?

No. CSLB says a larger project cannot be divided into smaller contracts to meet the exemption.

Do I file payroll reports in a no-wage quarter?

EDD says an employer must still file DE 9 and DE 9C for a quarter with no wages unless the account is properly made inactive.

Does CalGOLD issue permits?

No. Use it to identify possible requirements, then apply through the actual agency.

General operational information, not legal, payroll, tax, or safety advice. Verify current requirements with each California agency and jurisdiction.