After you pass - step 8
License Bonds and Financial Statements, State by State
Updated September 2026
Every NASCLA board wants some proof that you can finish the jobs you take. The proof comes in two forms - a financial statement showing working capital or net worth, or a license bond - and the state decides which, how much, and whether one can replace the other. Here is what we could verify.
What a license bond actually is
A contractor license bond is a promise by a surety company that if you break the licensing law or leave a customer holding the bag, the surety pays the claim - and then comes after you for the money. It protects the public, not you. You buy it once a year for a premium, and the premium is a percentage of the bond's face amount: with decent credit it is commonly quoted at 1-3% a year, so a $25,000 bond might cost a few hundred dollars. Weak credit pushes the rate up.
A financial statement is the alternative some boards prefer: a balance sheet prepared or reviewed by a CPA showing your working capital (cash and near-cash minus what you owe within a year) or net worth. The bigger the jobs you want to bid, the bigger the number.
Amounts we verified on official sites
Amounts reported by secondary sources - confirm with the board
These figures come from licensing-service and bond-seller summaries rather than the board's own page, so treat them as a starting point and confirm the current numbers before you buy anything:
- North Carolina - no license bond. Working capital of about $17,000 (Limited, $750,000 per project), $75,000 (Intermediate, $1.5 million) or $150,000 (Unlimited), with a bond of $175,000 / $500,000 / $1,000,000 reported as a substitute for the financial statement.
- South Carolina - group limits from $100,000 up to unlimited; the lowest groups reportedly need about $10,000 working capital or $20,000 net worth, and a continuous surety bond can stand in for the statement. Application fee reported at $350.
- Georgia - a $150,000 net-worth affirmation for the General Contractor license; application fee reported at $210.
- Louisiana - $10,000 net worth, with a bond or letter of credit as alternatives; $100 application fee for one classification.
- California - a $25,000 license bond for every licensee.
- Arkansas and New Mexico - a $10,000 bond is commonly reported for commercial licenses.
- Florida - a bond is reported only when the applicant's credit score falls below the board's threshold.
- Utah - a bond is reported only when the division finds financial irresponsibility.
How to buy one
Get the exact bond form and amount from the board first - the surety needs the state's form, not a generic one. Then get quotes from two or three bond agencies; most quote online in minutes from your name, entity, credit and the state. The bond is issued in the company's exact legal name, so form the entity first. Renew it every year before it lapses, or the license goes with it.
Bond or statement sorted? Insurance is next
Most boards want proof of general liability before issuing the license, and commercial customers want a certificate before you step on site.
Keep reading
ForemanPrep is an exam-prep company, not a law firm, insurance agency or licensing service. Figures were checked in September 2026 against the sources named; your board's current page is the final word.