Is an unlicensed contractor breaking the law to advertise construction services?

Is an unlicensed contractor breaking the law to advertise construction services?  That’s a good question and one that gets asked a lot around here at Academy License Center (ALC).  The answer to that question is no.  As long as the advertisement states that the contractor does not have a contractor’s license. However, licensed contractors are required by law to always include their contractor license number any time and anywhere they advertise their services.  Remember, the Contractors State License Board (CSLB) requires any individual or business doing a construction job that’s $500 or more including (labor and materials) must have a contractor’s license.

All businesses or individuals who construct or alter any building, highway, road, parking facility, railroad, excavation, or other structure in California must be licensed by the California Contractor State License Board (CSLB) if the total cost (labor and materials) of one or more contracts on the project is $500 or more.  Contractors including subcontractors, specialty contractors, and persons engaged in the business of home improvement must be licensed before submitting bids.  Licenses may be issued to individuals, joint ventures(partnerships) and corporations. – CSLB

All too often unlicensed contractors bid on projects well over $500 and run the risk of being cited by the CSLB for bidding on jobs illegally. The citation fees can be quite costly running thousands of dollars, including jail time.  The CSLB routinely sets up sting operations throughout California in order to catch unlicensed contractors in the act of submitting bids illegally.

Please don’t let this happen to you. Don’t jeopardize all of your potential for what amounts to pennies investing in your future.  It’s a small price to pay for peace of mind.  Being a licensed contractor does not make you a better contractor than you already are, but it does make you legal, and there’s no doubt that customers will not hesitate to choose you because you are more professional.  In that regard having a valid California State Contractors License makes all the difference in the world – in your business and especially in your personal future.

“The one who fears to act is always struggling with misfortune” – Franklin D. Roosevelt.

Don’t take the chance of getting caught without your license. Getting your contractors license will open the doors of opportunity for you! You can start bidding on larger jobs (including government jobs), and begin to network with other contractors that can develop into lucrative buiness relationships. And don’t forget the discounts, tax breaks, and all the other benefits that come from having your own license and business.

We have everything you need to pass your contractor state license exam at ALC, and our excellent application processing service can help you to avoid mistakes that can cause delays getting a test date.

Do you have more questions about getting your contractors license?  Give us a call… we’d like to help and hope to hear from you.

2 thoughts on “Is an unlicensed contractor breaking the law to advertise construction services?

  1. Robert Gibbons says:

    I am a 1099 contractor in florida where I consult people for solar air and roofing I don’t install. I am a sales organization but I want to advertise but I don’t have a contractor license. If I put consulting on my advertisement does that make it legal. The people i am 1099 with have the license and install

    • Susan Vincent says:

      If you are selling solar systems, then keep the advertisement to sales and consultation. If you or your company does not have a contractor license, you cannot advertise that you install the solar systems. It must be clear to the consumer that another party or contractor is doing the solar installation.

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