The State of California Contractors License Board (CSLB) requires all Limited Liability Companies (LLCs) to secure a $100,000 LLC Employee/Worker Bond in addition to the standard $15,000 Contractor’s License Bond. The bond protects the employees of the LLC who are damaged by their employer for failure to pay wages, interest on wages and fringe benefits. Additionally, if the LLC is also a party to a collective bargaining agreement, the bond shall also guarantee the payment of welfare fund contributions, retirement account contributions and apprentice program contributions.

The cost of this bond obligation will range between 2% to 5% per year depending on personal credit of the applicant.