When you're planning a remodel, a lower bid from an unlicensed contractor can look tempting. But in California, hiring someone without a license can cost you far more than you save, sometimes years after the job is done. Here's what every Los Angeles homeowner should know before signing a contract.

California law requires a license for most home projects

In California, any job of $1,000 or more in combined labor and materials must be done by a contractor licensed with the Contractors State License Board (CSLB). That limit went up from $500 on January 1, 2025, and it applies only to small jobs that don't require a building permit. Kitchen and bathroom remodels, additions, ADUs, roofing, and electrical or plumbing work are well over that amount, and they almost always need permits.

What a license actually protects you from

1. You may be liable if a worker gets hurt. Under California law, if an unlicensed contractor's workers are injured on your property, they can be treated as your employees. That can leave you responsible for medical bills and lost wages, and your homeowner's insurance may not cover it. Licensed contractors with employees must carry workers' compensation insurance.

2. A bond gives you a path to recover money. Every licensed California contractor must carry a $25,000 contractor license bond. If a contractor breaks the law or fails to follow building codes, you may be able to file a claim against the bond. With an unlicensed contractor, there's no bond and often no practical way to recover your money.

3. Permits and inspections. Permitted work is inspected by the city to make sure it's safe and up to code. Unpermitted work can cause problems when you sell your home, file an insurance claim, or refinance, and you may have to open up walls or tear out work to fix it.

4. Limits on down payments. For most home improvement projects, California limits a contractor's down payment to 10% of the contract price or $1,000, whichever is less. A contractor asking for a large deposit up front is a red flag.

5. Accountability. Licensed contractors answer to the CSLB, which investigates complaints and can discipline, fine, or revoke a license. Unlicensed operators have no license to lose.

How to check a contractor's license in 2 minutes

Before you hire anyone:

• Ask for their license number. In California, it must be on their contracts, bids, and advertising.

• Look it up at cslb.ca.gov under "Check a License." Confirm the license is active, matches the company name, and covers the type of work you need.

• Check that their bond and workers' compensation insurance are current. Both show on the CSLB lookup.

• Get a written contract with a clear scope, payment schedule, and start and finish dates.

Red flags to watch for

• They only accept cash, or ask you to pull the permits yourself

• They want a large deposit before work starts

• No license number on their bid, truck, or website

• A price far below every other bid

• Pressure to sign right away

Why homeowners choose Blueprint Builders

Blueprint Builders has been a licensed, bonded, and insured California contractor since 2004 (CSLB #841284). We carry workers' compensation, pull the proper permits, and manage every phase in-house: design, engineering, permits, and construction. Whether it's a kitchen or bath remodel, an ADU, or a custom home, you get one accountable team from start to finish.

Planning a project in Los Angeles? Call us at 310-751-6444 or request an estimate at blueprintbuilders.com/contact.

This article is general information, not legal advice. For questions about your specific situation, contact the CSLB or an attorney.