California Contractor LLC Employee Bond

A California Contractor LLC Employee Bond is a type of surety bond required by the California Contractors State License Board (CSLB) specifically for contractor businesses operating as Limited Liability Companies (LLCs). The bond amount is $100,000 and the cost of the surety bond is usually between 1% and 3% of the bond amount. Surety1 will shop its many markets to procure the right price at the right terms.

How to Get a California Contractor LLC Employee Bond

At Surety1.com, we make it easy to obtain your California Contractor LLC Employee Surety Bond. Our 3 step process is:

1. Complete our easy to navigate and secure online application.¹
2. Review the free, no obligation quote from one of our surety bond professional agents.
3. Sign some paperwork and make payment

Once these steps have been completed, the California Contractor LLC Employee Bond will be shipped to the applicant.
^{1 – The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.} 

Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003. We also maintain an A+ rating from the Better Business Bureau. 

Additional notes:

• This bond is distinct from the standard $25,000 contractor license bond required for all licensed contractors in California, even LLCs. Click Here for a CLB application
• Some issuing companies file the surety bond electronically with the CLB.

View our Performance and Payment Bond / Contractor Bonding Page

What does the bond do?

A Contractor LLC Employee Bond, primarily known as an LLC Employee/Worker Bond, offers financial protection to employees and workers of a contractor business operating as a Limited Liability Company (LLC) in California. It ensures they receive proper compensation even if the LLC fails to fulfill its legal obligations. Here’s a breakdown of what it covers:

Covered expenses:

• Wages: This includes regular pay, overtime pay, minimum wage, and any other earned compensation as per the employee’s agreement with the LLC.
• Interest on wages: If wages are not paid on time, interest accrues on the delayed amount, and the bond covers that as well.
• Fringe benefits: This encompasses any employer-provided benefits like health insurance, retirement contributions, vacation pay, sick leave, and more, as stipulated in the employment contract or company policy.

If an employee files a claim against the bond due to unpaid wages or benefits, the surety company will investigate and potentially cover the owed amount, up to the $100,000 limit. However, it’s crucial to remember that the LLC is ultimately responsible for reimbursing the surety company for any payouts made under the bond.

How to License an LLC with the Contractor’s License Board.

Licensing an LLC with the California Contractor’s License Board (CSLB) involves several steps. Here’s a comprehensive guide:

1. Determine Your License Classification:
   • Visit the CSLB website and use their classification search tool to find the right license classification for your business activities.

2. Meet Basic Licensing Requirements:
   • Be a registered LLC with the California Secretary of State.
   • Have a responsible managing employee (RME) who meets the CSLB’s experience and qualification requirements for your chosen classification.
   • Obtain workers’ compensation insurance.

3. Complete the Application:
   • You can apply online or by mail.
   • Gather all required documents, including proof of business registration, workers’ compensation insurance, and RME qualifications.
   • Pay the application fee.

4. Background Check:
   • All RME applicants must undergo a fingerprint-based background check.
   • You’ll receive a fingerprinting packet after submitting your application.

5. Pass the Exam:
   • The RME must pass the written exam for your chosen classification.
   • You can schedule the exam online or by phone.

6. Submit Bonding & Insurance Documents:
   • Obtain a Contractor’s License bond (of the RME).
   • Obtain a California Contractor LLC Employee Bond
   • Provide proof of general liability insurance.

7. Pay Fees and Receive License:
   • Pay the license fee and any additional fees.
   • Once approved, you’ll receive your contractor license in the mail.

Additional Tips:

• The CSLB website offers a wealth of information and resources to guide you through the process.
• Allow ample time for each step, as processing times can vary.

The information provided above is for general informational purposes only and does not constitute legal advice. It is important to consult with a qualified attorney specializing in California contractor licensing matters for specific guidance and support tailored to your unique situation. Do not rely solely on the information presented here as a substitute for professional legal counsel.