California Contractor Law & Business Exam
Free study guide and practice questions for the California CSLB Law & Business exam — contracts, mechanics liens, workers' comp, business finances, safety and more, current to the 2026 law book.
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Every California contractor applying for a license must pass the Law & Business exam administered by the Contractors State License Board (CSLB). It covers how to run a construction business legally in California: business organization, finances, employment and payroll, insurance and liens, contract rules, public works, and jobsite safety.
This guide breaks the exam into the same topics the CSLB tests, each with a plain-English explanation and a set of practice questions. Work through the topics below, then take a full timed practice exam to check where you stand.
Study by topic
Business Organization & Licensing
California contractor exam guide to business organization and licensing: entity types, the $25,000 license bond, LLC $100,000 bond, EDD and EIN, HIS, and CSLB discipline.
Read & practice →02Business Finances & Accounting
California contractor Law & Business exam study guide on business finances and accounting: cash vs. accrual, balance sheet, current and quick ratios, working capital, taxes, and financing.
Read & practice →03Employees, Payroll & Workers' Comp
California contractor exam guide to employees, payroll, and workers' comp: when coverage is required, injury-reporting deadlines, uninsured penalties, and HIS registration rules.
Read & practice →04Insurance, Bonds & Mechanics Liens
California contractor bonds, CGL insurance, and the mechanics lien process — the $25,000 license bond, 20-day preliminary notice, and the 30/60/90-day lien deadlines, explained with practice questions.
Read & practice →05Contracts & Home Improvement Rules
California home improvement contract requirements — the maximum down payment, 3-day right to cancel, 10-point type rule, mechanics lien warning, and change orders, explained with practice questions.
Read & practice →06Public Works Contracts
California contractor exam guide to public works: prevailing wage, DIR registration, certified payroll, the eight-hour day, apprenticeship, bidding and retention, stop notices, and payment bonds.
Read & practice →07Jobsite Safety & Excavation
California contractor exam study guide on jobsite safety and excavation: the 811 call window, 28-day USA ticket, 48-hour damage reporting, fines, and human remains rules.
Read & practice →