What Do Subcontractors Need to Work for a General Contractor? (2026)
Updated: Nov 2
Quick answer: In California, a subcontractor generally needs a Contractors State License Board (CSLB) license that covers the work, the license bond, workers' compensation coverage or an exemption on file, and a local business license where one is required. General contractors also usually ask for a written subcontract, proof of insurance and a Form W-9 before the first payment.
Hi, I'm Karla. I also own a construction and remodeling company, so I see this from both sides: the general contractor who can't pay a sub until the file is complete, and the sub who loses a job over one missing document. Clean paperwork gets you hired, and paid.
The steps to be ready to work as a subcontractor
Hold the right CSLB license. The CSLB says anyone who contracts for or bids on construction work must be licensed, except very small jobs that need no permit and use no hired workers, and the license classification must match the type of work.
Keep your bond, plus the extra coverage for LLCs. A license requires a contractor's bond. The CSLB says LLC licensees also need liability insurance and an additional bond that protects workers' wages.
Have workers' comp coverage or an exemption on file. The CSLB requires a workers' compensation certificate on file or, for most licensees with no employees, an exemption. Concrete, HVAC, asbestos abatement, roofing and tree service licensees must carry coverage even without employees.
Get ready for 2028. The CSLB says all active licensed contractors must have workers' compensation by January 1, 2028, even if they have no employees.
Register your business locally. Have a city or county business license or business tax registration wherever it's required, and keep your business name (DBA) filings current.
Work under a written subcontract. The Employment Development Department (EDD) lists seven conditions for a construction subcontractor to be treated as its own business, not an employee: a written subcontract, a CSLB license that covers the work, a local business license where required, a business location separate from the contractor's, the authority to hire and fire your own helpers, financial responsibility for your work (through insurance, bonds or warranties), and an established business doing the same kind of work.
Give the general contractor your W-9. The IRS says businesses that pay contractors collect a Form W-9 with the contractor's correct name and taxpayer ID. Without it, payments can be subject to backup withholding.
Quick FAQ
Can a general contractor hire an unlicensed subcontractor?
For work that requires a license, the subcontractor must be licensed too. Under the EDD's rules, a subcontractor without a CSLB license covering the work doesn't meet the conditions to be treated as an independent business.
I have no employees. Do I need workers' comp?
Today, licensees with no employees can file an exemption, except in the five classifications listed above. The CSLB says that changes on January 1, 2028, when all active licensed contractors must have coverage.
Do I need a business license in every city where I work?
Often, yes. Many cities, Concord among them, require a license for businesses working inside city limits even when the office is somewhere else.
What I do for you
Build your compliance file. I put your license, bond, insurance certificates, W-9 and business licenses in one ready-to-send packet for every general contractor.
Track every expiration date. License renewals, insurance and bond dates go on a calendar with reminders, so no certificate expires mid-job.
Handle the business paperwork. I prepare and file your business license applications, DBA and Statement of Information, and keep your job invoices and bookkeeping in order.
Let's do it together
Want your paperwork ready before the next general contractor asks for it? I offer a free first consultation in English or Spanish, remote or in person, for small businesses in the Concord, CA area, serving Contra Costa, Alameda and San Francisco counties.
Karla I. Vasquez · KCK Professional Services by Karla
510-998-7004 · kckprofessionalservices@gmail.com · kckproservices.com
Sources: Contractors State License Board; California Employment Development Department; Internal Revenue Service; City of Concord. Information current as of November 2026.
This article is general information to help you understand the process. It is not legal, tax or financial advice. Karla I. Vasquez and KCK Professional Services are not attorneys, CPAs or tax advisors and are not a law firm. Fees, forms and rules change, so always confirm with the official agency before you file. For advice about your situation, talk to a licensed attorney or tax professional.
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