Legal Question in Construction Law in California

A business license and a contractor license are quite different. A contractor's license is a professional credential; a business license is a tax-collection gimmick.

You need a contractor's license to do jobs over $500; they are issued by a state agency, the Contractors' State Licensing Board.. You need a business license to engage in any business, and they are issued by your city (or the county, if the business is situated in an unincorporated area).

Many contractors will need both licenses. Most handymen will need a business license.