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A contractors license is not necessary as long as you dont advertise yourself as a licensed contractor and never contract for jobs costing $500 or more, including labor and materials. There are serious penalties for unlicensed contracting and the Contractors State License Board (CSLB) seriously pursues violators.
You can start your handyman career in California right now if you wish to stay unlicensed. However, you must stay under the $500 per project limit. To go beyond the limit, you will need a general contractors license.
The passage of Senate Bill 392 (Statutes of 2010, Chapter 698) authorized CSLB to issue contractor licenses to limited liability companies (LLCs).
Attach a personal, certified, or cashiers check or money order payable to the Contractors State License Board.
A sole owner license is issued to a specific individual. The license can be qualified by the Owner or an Responsible Managing Employee (RME). The license cannot be sold or transferred to another individual.
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The easiest kind of contractors license is a Class B Contractors License. This license allows you to do general contracting work. There are also licenses for specialty contracting work called a Class C Contractors License. These are for jobs like plumbing or electrical.
Submit the correct form to the California Secretary of State. All forms can be filled out and turned in online, e-filed, or mailed. Note that filing online is the fastest way to change a business name in California. Submission by mail could take several months to process.
An individual can obtain a contractors license, then setup a company (sole proprietorship, LLC, corporation, etc.) and then that company can contract under that individuals license. Thus, if you were to buy a construction company, you will still need someone in the company to hold a contractors license.

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