California LLC Employee Worker Bond

The California LLC employee worker bond is required for LLC  contractors in California. If you own and operate a LLC (Limited liability corporation), then the state licensing board (CSLB) requires you to obtain a $100,000 bond to protect your employees in case they do not receive proper compensation at work.

Example contractor walking

How much does a CA LLC employee worker bond cost?

The cost of a LLC employee worker bond ranges from 1% to 5% of the total bond amount. In other words, it can cost anywhere from $1,000 to $5,000. The actual price will vary based on an applicant's financial situation. Typically applicants with better credit scores will receive better prices.


Other FAQs

Who needs a LLC employee worker bond?

An LLC employee worker bond is required for all contractors operating an LLC contracting business within the state of California. It exists to protect the employees of LLCs in case they are not compensated fairly.

How is the bond amount determined?

The bond amount is determined by the CSLB based on previous risk standards set by California LLC contractors. The bond amount is the largest possible amount that could be paid out in the event of a claim.