CSLB Advertisement Guidelines for Contractors

Imagine this: you’ve spent the last four years getting journeyman experience for your contractor license, taken all the exams, and paid all the fees. You finally get your contractor license and you are ready to start getting clients. You start advertising your business and all of a sudden, your license is suspended because you unknowingly advertised your business illegally. You might know your trade like the back of your hand, but do you know how to run your business to Contractor State License Board (CSLB) standards? 

The CSLB has very specific guidelines when it comes to advertising your construction business. We’ll outline some common marketing mistakes contractors make in this post. You can also access the information directly from the CSLB website. 

A common misconception is your ability to advertise your business using whatever name you would like. In reality, the name you choose to do business under must be the same as the name printed on the license. Even if you have filed a specific business name with the state, your advertising must reflect what is on your license. If the name printed on your license is only your legal name, then you must file a “Name Change” form with the CSLB and pay the appropriate fees before you can operate under your desired business name. 

For instance, a newly licensed contractor, Sean John, has his legal name listed on his license but he wants to do business under “Sean’s Construction.” Unless Sean changes the name listed on with the CSLB as “Sean’s Construction,” he legally cannot advertise his business as such as it violates the Business and Professions Code (BPC) 7083, which has a minimum fine of $100.*

Another mistake commonly seen is the lack of a license number visible on company advertisements. If you send out any digital marketing, have a website, and/or have any social media accounts, they must all include your license number in some way per BPC 7027.1. This provides transparency for your clients to locate your license on the CSLB website and do their due diligence ensuring they hire licensed contractors. 

This last common violation might seem counterintuitive, but you actually cannot advertise that you are bonded and insured. The reason is to protect the public from thinking they have higher levels of protection than what is actually available. Stating you are bonded and insured is a violation of BPC 7071.13. 

What we have listed is not a comprehensive list of all advertising violations set by the CSLB, so be sure to do your due diligence and research these limitations accordingly. To set yourself up for contracting success, be sure to follow the proper protocol to steer clear of any violations being put on your license! 

*A list of BPC violations and their associated fine amounts can be found here.