Do You Even Owe a Second $25,000 Bond?
Short answer: if you’re an RME, yes — always. If you’re an RMO, Responsible Managing Manager, or Responsible Managing Member and you own 10% or more of the corporation’s voting stock or the LLC’s membership interest, no — you file a CSLB exemption certificate instead. That single percentage, defined in Business and Professions Code § 7071.9, decides whether you buy a $25,000 Bond of Qualifying Individual (BQI) or skip it entirely. Most competitor pages sell this bond to everyone who lands on the page — we check your exemption status first.
This is the exact-match page for the qualifying individual bond specifically. For the standard $25,000 entity license bond every CSLB licensee carries, see the CSLB license bond page. For the full California contractor bonding picture — license bond, LLC bond, disciplinary bond, and this one — start at the California contractor license bond hub.
The § 7071.9 Exemption Decision Tree
Three questions, in order, determine your answer. Work through them before you request a quote — you may not need one.
1. Are you the sole proprietor, a general partner, or a joint licensee on this license?
Stop here. BPC § 7071.9 does not apply to you at all — you are already personally on the license, not standing in as a qualifier. You only owe the standard $25,000 license bond under BPC § 7071.6.
You’re qualifying the license as an RMO, RME, Responsible Managing Manager, or Responsible Managing Member. Continue to question 2.
2. Are you an RME (a bona fide employee, with no ownership stake)?
Stop here. The § 7071.9 exemption is only available to owners. As an RME you have no ownership stake to certify, so the $25,000 BQI is required — no exception, regardless of tenure or experience.
You’re an RMO, Responsible Managing Manager, or Responsible Managing Member with an equity stake. Continue to question 3.
3. Do you own 10% or more of the corporation’s voting stock (or the LLC’s membership interest)?
You’re exempt. File CSLB’s Bond of Qualifying Individual exemption certificate instead of buying the bond — no premium, no underwriting.
You owe the $25,000 Bond of Qualifying Individual. Use the form above — we already know your role, so we skip straight to underwriting.
Federally recognized tribes: BPC § 7071.9(a)(2) exempts qualifying individuals of federally recognized and participating tribes from this bonding requirement outright, independent of the ownership test above.
What BPC § 7071.9 Actually Requires
The statute in plain terms, with the exact figures CSLB enforces.
Official California Requirements
"If the qualifying individual...is neither the proprietor, a general partner, nor a joint licensee, the qualifying individual shall file or have on file a qualifying individual's bond...in the sum of twenty-five thousand dollars ($25,000)."California Business and Professions Code • Business and Professions Code § 7071.9
Like the entity license bond, § 7071.9 caps the aggregate amount available to non-priority claimants at $7,500 per bond, reserving the balance for specified higher-priority beneficiary classes.
Bond of Qualifying Individual: SB 607 Increase
Bond Requirement Increase
Previous Requirement
$12,500
New Requirement
$25,000
SB 607 doubled the BQI from $12,500 to $25,000 the same day it raised the entity license bond from $15,000 to $25,000 — both changes are in the same bill, but they are two separate bond amounts under two separate statutes.
RMO vs. RME: Same Legal Duty, Different Bonding Fate
CSLB uses the operational titles RMO, RME, Responsible Managing Manager, and Responsible Managing Member. The statute governing all four uses one term: “qualifying person.”
Official California Requirements
"The person qualifying on behalf of an individual or firm...shall be responsible for exercising supervision and control of their employer's or principal's construction operations."California Business and Professions Code • Business and Professions Code § 7068.1
A corporate officer of record on the CSLB license, exercising the same § 7068.1 supervision-and-control duty as any qualifying person. The distinction that matters for bonding is equity: an RMO who holds an officer title but no stock is treated the same as an RME for BQI purposes.
Owns 10%+ voting stock → exemption certificate, no bond.
Owns under 10% (or 0%) → $25,000 BQI required.
A bona fide employee actively engaged in the business for at least 32 hours, or 80% of the business’s weekly operating hours, whichever is less, per 16 CCR § 823(a) and BPC § 7068(c). The RME exercises the identical §7068.1 supervision duty as an RMO — the only difference is the RME holds no equity in the license they qualify.
No ownership path exists for an RME — the $25,000 BQI is required for as long as they hold the role.
The three-firm limit (§ 7068.1)
A single qualifying person — RMO or RME — may not act as the qualifier for more than three licensed firms in any calendar year, with exceptions where the firms share common ownership of at least 20% equity, are subsidiaries or joint ventures of each other, or share the same majority ownership among their partners, officers, or managers. This limit compounds directly with the BQI: an RME qualifying three unrelated firms is very likely carrying three separate Bonds of Qualifying Individual at the same time.
The Real Cost Stack: License Bond Alone vs. License Bond + BQI
If you don’t qualify for the exemption, budget for two $25,000 bonds, not one. Pricing below is typical market premium, not a statutory rate.
What a California Contractor Actually Pays in Bonding
Same 0.5%–4% rate band applies to both bonds; the BQI simply adds a second $25,000 obligation.
| Scenario | Bonds Required | Total Bonded Amount | Typical Annual Premium |
|---|---|---|---|
| Sole proprietor / general partner | License bond only | $25,000 | $125 – $1,000 |
| Corp/LLC, RMO/RMM owns 10%+ | License bond + exemption certificate | $25,000 | $125 – $1,000 |
| Corp/LLC, RME or sub-10% RMO/RMM | License bond + BQI | $50,000 | $250 – $2,000 |
| LLC, RME or sub-10% qualifier | License bond + LLC bond + BQI | $150,000 | $375 – $3,000+ |
LLC contractors also carry the separate $100,000 employee/worker bond under BPC § 7071.6.5 regardless of BQI status — see the LLC bond page linked below.
Source: California BPC §§ 7071.6, 7071.9, 7071.6.5; premium ranges from BuySuretyBonds.com surety panel pricing, 2026
LLC + non-exempt qualifier — the worst case
An LLC qualified by an RME stacks all three bonds: $25K license bond + $25K BQI + $100K LLC employee/worker bond = $150,000 in total bonding on one license.
Read the $100,000 LLC Employee/Worker Bond page →Already carrying the standard $25K bond?
If you haven’t filed the entity’s license bond yet, start there first — CSLB won’t activate a license on the BQI alone.
Read the $25,000 CSLB License Bond page →Multi-License Qualifiers: When One Person Bonds Several Firms
Estimators, project executives, and licensing consultants who qualify multiple contractor entities face a compounding bond count — not a bulk discount.
Practical read: a licensing consultant who RME-qualifies three small specialty contractors this year — none of which they own equity in — is managing three separate $25,000 BQI relationships simultaneously, on top of the three-firm ceiling in § 7068.1. If that describes your situation, tell us all three business names in the form above and we’ll quote them together rather than three separate intake calls.
Confirmed you owe the bond? Skip straight to underwriting.
Get My BQI Bond QuoteQualifying Individual Bond FAQs: Exemptions, Stacking, and Multi-License Qualifiers
The questions RMOs, RMEs, and their licensing consultants actually ask.
I already bought the $25,000 CSLB license bond. Why would I need a second $25,000 bond?
I'm a 12% LLC member and I'm also the qualifying manager. Do I need the BQI?
I'm an RME with 15 years of experience but zero equity. Can I ever get out of this bond?
I qualify three different licenses as an RME. Do I need three separate BQIs?
Does the $25,000 BQI actually pay out $25,000 per claim?
I'm a sole proprietor. Do I need to worry about this bond at all?
Official CSLB Resources
Bond of Qualifying Individual: BPC § 7071.9 (leginfo.ca.gov)
Qualifying Person Duties: BPC § 7068.1 (leginfo.ca.gov)
Entity License Bond: BPC § 7071.6 (leginfo.ca.gov)
Bond Requirements page: cslb.ca.gov/bond_requirements
CSLB phone: (800) 321-2752
Exemption certificates are requested directly through CSLB and are not something our agency files on your behalf — we can confirm eligibility, but the certification is between you and the Board.
Keep Going: California Contractor Bond Resources
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All content is researched from official state and federal sources (.gov) and verified before publication. BuySuretyBonds.com works with Treasury-certified, A-minimum rated surety carriers serving all 50 states.
Know Your Status. Then Move Fast.
If you’re exempt, we’ll tell you before you pay for anything. If you owe the $25,000 BQI, same-day issuance for normal credit — BPC § 7071.9 compliant.
Treasury-listed carriers • A- minimum AM Best rating • BPC § 7071.9 compliant