A Contractor Based in Long Beach: CSLB License, the City License Tax, the Vehicle Decal and Out-of-Town Licenses

Contractors meet the license rules twice, once at the state and once at the city, and a third time at the Permit Center when they pull permits. This page covers the licenses a contractor holds as a business. How a customer checks a license is in Checking a Contractor in Long Beach, and the permits a project needs are in the section pillar, How to Start a Business in Long Beach.

The short answer

The state license comes first

CSLB’s page says a license is required “if the project requires a building permit or uses any additional workers or the total cost (labor and materials) of one or more contracts on the project is $1,000 or more”. The exemption applies only where “a building permit is not required, no employee labor is used and the combined value of labor, materials, and all other costs … is less than $1,000”, and larger work “may not be broken down” to fit³. CSLB’s list of fees, as printed in October 2026⁴:

Source:⁴. The city’s list of papers to bring with a license application includes the state contractor license, and names and addresses must match the applicant¹.

The city license tax

The 2026-27 rate table (July 1, 2026 to June 30, 2027) lists Contractors (construction) at $488.81 plus $25.36 per employee. For a contractor with four employees that is $590.25 a year, by the table’s arithmetic². The table also has an Independent contractors line at $299.54 plus $25.36 per employee; it does not say whether a contractor’s business qualifies for it, and the tax page says the rate “depends on the classification of your business”²⁸.

“Employee” means “Every person engaged in the operation or conduct of any business in Long Beach, whether as owner, member of the owner’s family, partner, associate, agent, manager or solicitor”, except that “The owner of a sole proprietorship shall not be deemed to be an ’employee'”⁹. Contracting trades are on the city’s list of license types eligible for the online Business Portal; the Business License Division is at 411 W. Ocean Blvd., 2nd Floor, (562) 570-6211¹⁰¹¹. In most cases a license “can be issued upon receipt of the application and payment”; where inspections come first, “this takes two weeks or less” for most businesses¹².

The vehicle decal

The city’s application prints LBMC 3.80.425.5: “Every person having a license shall prominently display the license at the place of business. If the business is operated from a vehicle, an identifying decal issued by the City shall be affixed to the vehicle, and the business license shall be carried by the licensee”⁹. The city pages used here do not say where the decal is issued or what it costs. A violation of the chapter is a misdemeanor “punishable by a fine of not more than five hundred dollars ($500.00) or by imprisonment for a period of not more than six (6) months” (LBMC 3.80.446)⁵.

Contractors based outside Long Beach

“All businesses operating within the City of Long Beach need to obtain a business license, including out-of-city or home-based businesses”⁷. For out-of-city firms the 2026-27 table has three short terms in place of the annual license: 3 months at $122.10 plus $6.33 per employee, 6 months at $244.21 plus $12.66 and 9 months at $366.31 plus $19.03². Out-of-city businesses may mail or email [email protected] instead of applying in person¹⁰.

Official pages disagree The Business License FAQ answers “How much is a license for an out-of-city contractor?” with a 12-month figure of $458.35¹³. That figure is the old 2024-25 rate; the 2026-27 rate table’s out-of-city terms stop at 9 months². The rate table carries the current dates; the code adjusts the taxes each July 1²⁵.

Renewal and late penalties

A license is “valid for one (1) year from the date of issuance … and must be renewed each year”, and “Taxes and fees for the first year of operation will be charged prior to receiving your business license”⁹⁸. Renewal needs no new application: “Each year, the business will receive a bill … Once the bill is paid, the business license is renewed”¹³. After 30 days late the code adds “twenty-five percent (25%) of the total amount”, then “ten percent (10%)” on the first day of each calendar month, up to a maximum of “one hundred percent (100%)”⁵. A change of entity, of owners of 50 percent or more, of location or an added activity needs a new application⁷.

Permits afterward: the online account

A licensed contractor can register for the Permit Center’s online permitting account. Registration is a one-time in-person visit, and “you will need your state contractor’s license, certificate of workers’ compensation insurance (if required), City of Long Beach city business license and credit card”; the page says “Allow 2-3 business days” and limits the account to projects “that do not require a plan review or a plot plan”⁶. The page’s wording is dated: it names only some card brands.

What a customer can see

CSLB’s Check a License page takes a license number (no letters, up to 8 digits) or a business name and shows complaint disclosure¹⁴. CSLB says “All contractor advertisements … must have the contractor’s state license number”, and a contractor with employees must carry workers’ compensation, which “is also available on their license history page”¹⁵.

The steps, in order

1. Apply to CSLB for the license: $450 application fee, then the $200 or $350 initial fee³⁴.
2. Apply for the city license with the state license number; name and address must match¹.
3. Affix the city decal to any vehicle the business is operated from⁵⁹.
4. Register for the online permitting account if the projects qualify⁶.
5. Renew each year: the city sends a bill, and paying it renews the license¹³.

Frequently Asked Questions

Do I need a state license and a city license to be a contractor in Long Beach?

Yes. The city says “you must obtain a state contractor’s license in addition to the city business license”¹.

How much is the city business license for a contractor?

$488.81 plus $25.36 per employee in 2026-27; an out-of-city contractor can take a 3-, 6- or 9-month term².

When does CSLB require a license?

When a project needs a building permit, uses additional workers, or totals $1,000 or more; the work “may not be broken down” to fit under it³.

Does my work vehicle need a decal?

If the business is operated from a vehicle, “an identifying decal issued by the City shall be affixed to the vehicle”⁹.

How much is the CSLB license?

A $450 original application fee, then a $200 initial license fee for a sole owner or $350 for other owners⁴.

Does the owner count as an employee?

“The owner of a sole proprietorship shall not be deemed to be an ’employee'”⁹.

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