California LLC $100,000 Bond
Every California contractor licensed as a limited liability company (LLC) must carry a $100,000 LLC Employee/Worker Bond with the Contractors State License Board (CSLB). It is on top of the standard $25,000 contractor license bond, and CSLB will not issue or renew an LLC license without it. Pacific Southwest Insurance Services helps California LLC contractors get this bond quickly, along with the liability insurance CSLB also requires.
Get a free bond quote today. Call (818) 701-1033 or email info@pswinsurance.com. Office hours are Monday to Friday, 9:30 AM to 5:00 PM.
What Is the LLC Employee/Worker Bond?
The LLC Employee/Worker Bond is a $100,000 surety bond required by California Business and Professions Code section 7071.6.5. It protects the LLC’s employees and workers. If the LLC fails to pay wages, interest on wages, fringe benefits, or other required contributions, a damaged employee or worker can make a claim against the bond.
Like any surety bond, it is not insurance for the LLC itself. If the surety pays a valid claim, the LLC is expected to pay the surety back.
Who Needs It
CSLB requires the $100,000 bond for any contractor license held by an LLC. It is required to:
- Issue a new LLC contractor license
- Renew an LLC license
- Reissue, reinstate, or reactivate an LLC license
Sole proprietors and corporations do not need this bond. It applies only to licenses held by limited liability companies.
California LLC License Requirements at a Glance
An LLC contractor license in California has more financial requirements than other license types:
- $25,000 contractor license bond, the standard bond every licensed contractor carries
- $100,000 LLC Employee/Worker Bond, covered on this page
- Liability insurance of at least $1 million total for LLCs with five or fewer people listed as personnel of record, plus $100,000 for each additional person, up to a $5 million maximum (Business and Professions Code section 7071.19). The policy must be written by an insurer licensed in California or an eligible surplus line insurer.
- Workers’ compensation coverage, or an exemption on file with CSLB if the LLC has no employees
We can place the bonds and the liability insurance together, so your LLC license paperwork is handled in one place.
How Much Does the $100,000 LLC Bond Cost?
You do not pay $100,000. You pay a yearly premium that is a percentage of the bond amount. The surety company sets the price based on:
- Personal credit of the owners
- Business financials and time in business
- Contracting experience and claims history
Contractors with strong credit usually qualify for the best rates. Newer businesses and owners with credit challenges can often still get bonded. We compare options from multiple surety companies to find the right price for your situation.
How to Get Your LLC Bond
- Contact us with your LLC name, CSLB license or application number, and owner information.
- We shop the bond with our surety companies and send you a quote, often the same day.
- Sign and pay, and the bond is issued.
- The bond is filed with CSLB so your license can be issued or renewed on time.
Why Choose Pacific Southwest Insurance Services
We have helped California businesses since 1965. We work with contractors every day on bonds, general liability, commercial auto, and workers’ compensation, so we understand what CSLB needs and how to keep your license in good standing. When it is time to renew, we will reach out before your bond expires.
Frequently Asked Questions
Is the LLC Employee/Worker Bond the same as a contractor license bond?
No. The $25,000 contractor license bond protects consumers and others who do business with you. The $100,000 LLC Employee/Worker Bond protects your employees and workers from unpaid wages and benefits. An LLC needs both.
Do I need the bond to renew my LLC license?
Yes. CSLB requires the $100,000 bond for renewal, as well as for issuing, reissuing, reinstating, and reactivating an LLC license.
Can I get bonded with bad credit?
Often, yes. Premiums may be higher, but many surety companies will still write the bond. Call us and we will look at your options.
Get a California LLC Bond Quote
Ready to get your LLC bonded? Call (818) 701-1033, email info@pswinsurance.com, or visit our office at 9036 Reseda Blvd., Suite 105, Northridge, CA.
Source: CSLB, Licenses for Limited Liability Companies. Requirements can change; confirm current rules with CSLB.