The $100,000 LLC bond is required for all contractors in California with a business entity registered as an LLC (Limited Liability Company). In 2010, Senate Bill 392 authorized the Contractors State License Board to issue licenses to LLC’s, which were not obtainable prior to this time. Along with this passage came a short list of additional requirements unique to construction businesses organized as LLC’s including certain requirements pertaining to liability insurance as well as other license requirements, in addition to the LLC bond. When establishing a Limited Liability Company in California, contractors should consult with the CSLB for a complete list of LLC license requirements as well as a qualified attorney. Also of note, the $100,000 LLC bond is required in addition to a $15,000 California Contractors License Bond.

Who Benefits From A California Contractors LLC Bond?

Many contractors may choose to organize as an LLC to seek additional protection of personal assets over those offered by other entities such as a partnership or sole proprietorship. However, as mentioned it’s important for potential LLC contractors to consult with a qualified attorney to discuss the potential benefits and drawbacks of this form of organization. While commonly misunderstood, an LLC bond is for the benefit of any employee or worker who may have incurred financial damages as a result of the company’s failure to pay wages, fringe benefits or other financial contributions as outlined in Business and Professions code 7071.6.5. In light of this, contractors should be mindful that if a justified claim is made, the surety that issued the bond will essentially hold a contractor accountable for any errors they made and any corresponding bond payout.


How Much Does a $100,000 California Contractors LLC Bond Cost?

Contractor LLC bonds are based on multiple rating factors including but not limited to an applicants credit and financial status with rates ranging from about 2%, to 20% of the bond amount on approved applications at the time of this writing.


Get A Contractors $100,000 LLC  Bond Quote Now

To get a quote on a new $100,000 contractors LLC bond, just give us a call at 1-800-682-1552 and one of our bond specialists would be happy to assist you or complete the quote form on the right side of this page.


By Jeremy Schaedler