A $100,000 surety bond (in addition to the $25,000.00 Contractors License Surety Bond) is required for the issuance of both active and inactive licenses, reissuance, reinstatement, reactivation, and renewal of an LLC license.  for the benefit of any employee or worker damaged by the LLC’s failure to pay wages, interest on wages, or fringe benefits, as well as other contributions (not required for inactive LLC licenses). (Business and Professions [B&P] Code section 7071.6.5)

Contractors doing business in the State of California whose corporate structure is a Limited Liability Company (LLC) are required to post a $100,000.00 LLC Employee/Worker Surety Bond in addition to the $25,000.00 Contractors License Surety Bond.  The bond will run concurrently with the contractors license and requires annual renewal.  For additional information, please refer to the California Contractors License Boards Licenses for Limited Liability Companies page

What is a California (CA) LLC Employee/Worker Surety Bond

The LLC Employee/Worker Surety Bond is for the benefit of any employee or worker damaged by the LLC Contractor from unpaid wages, interest on wages or fringe benefits, as well as all other contributions due to the Employee or Worker.  All LLC licenses MUST be qualified by a Responsible Managing Employee (RME) or Responsible Managing Officer (RMO), Responsible Managing Member (RMM) or Responsible Managing Manager (RMG) which has its own  Contractors License Surety Bond Requirement.

How much does a California (CA) LLC Employee/Worker Surety Bond cost?

Rates for this particular bond start as low as $1500 per year for qualifying accounts.  Due to the nature of this particular bond, the underwriting guidelines require accounts to show financial strength and strong credit to support the bond.  Accounts that do not meet the underwriting requirements or have credit issues can be placed in our Bad Credit Surety Bond program.  Business and personal financial statements will be requested after your application is submitted.  Apply for your LLC Employee/ Worker bond today!

Some other bonds that California Contractors may need:

• $25,000.00 Contractors License Surety Bond 
• California Farm Labor Contractors License Surety Bond
• Bid Bonds
• Payment & Performance Surety Bonds
• Platt / Subdivision Surety Bonds
• Union Wage, Welfare and Fringe Benefits bonds