Two Exams, One Big Decision
Earning your California contractor’s license is a huge milestone; a sign that you’ve moved from apprentice or journeyman to a true professional ready to operate your own business. But before you can call yourself “licensed,” there are two major hurdles to clear: the Law & Business Exam and the Trade Exam. Both are required, and both demand focus. Yet many new candidates pause at the same crossroads: Should I take the Trade Exam first, or should I tackle the Law & Business Exam?
If you’re staring at your study guides and wondering how to begin, you’re not alone. Let’s take a closer look at how these exams differ, what the pros and cons are of each approach, and how you can set yourself up for testing and business success.
Understanding the Two Exams
To get a contractor’s license from the California Contractors State License Board (CSLB), you need to pass two separate tests. The Law & Business Exam covers construction law, business management, safety, employment requirements, insurance, public works, and legal compliance. No matter your trade, every applicant must pass this exam to demonstrate they can run a compliant and ethical business in the state.
The Trade Exam, by contrast, is tailored to your specific classification—such as General Building (B), Electrical (C-10), or Plumbing (C-36). It tests your technical skills, practical knowledge, and ability to interpret plans, codes, and job scenarios.
Most applicants agree that the Law & Business Exam is often more straightforward because its content is less specialized, and your experience from running jobs or assisting with paperwork might provide a head start. The Trade Exam can be trickier, especially if your hands-on skills are stronger than your code knowledge or if your classification involves a broad technical range.
Pros and Cons: Which Exam to Take First?
To make a smart decision, start by recognizing your strengths and gaps. If you’ve been working in your trade for years, you may feel comfortable handling technical questions but daunted by legal or financial terminology. Conversely, those who have served as foremen or in supervisory roles might find the Law & Business content more familiar.
Taking the Law & Business Exam First:
Some candidates find it helps to begin with the Law & Business Exam. This content is usually less variable and, with a focused study effort, can often be mastered in a matter of weeks. Passing this exam first gives you momentum—and a clear way to “break the ice” before facing your more specialized trade test. Plus, many candidates discover that understanding contract law, employment policies, and safety standards helps clarify the types of procedures you’ll actually be responsible for on-site.
Tackling the Trade Exam First:
Other candidates choose to tackle the Trade Exam before the Law & Business. If you’re already immersed in a specific trade, this may be the material you know best. You might also want to strike while the iron is hot—if you’re working on relevant job sites, you can bring fresh experience directly into your study sessions and the exam itself.
The Balanced Path:
Whichever order you choose, the key is to play to your strengths and set a realistic timeline. For example, Joe, a 12-year journeyman electrician in Sacramento, found the Trade Exam a breeze but was blindsided by financial reporting questions on the Law & Business Exam. He wished he’d started with Law & Business, as the real-world knowledge built his confidence and clarified his need for targeted study.
Tips for Success: Strategies From the Field
No matter which exam you take first, these actionable tips will improve your odds:
- Familiarize yourself with exam formats and question types: Both exams use multiple-choice questions. There’s no penalty for guessing, so don’t leave anything blank.
- Tailor your study routine: For the Law & Business Exam, focus on key sections like Contract Law, Business Finances, Insurance, and Safety. For the Trade Exam, zero in on the subtopics that carry the most weight for your classification.
- Use practice tests and timed drills: Try to simulate exam conditions to build confidence and stamina. Many applicants report that timing themselves on practice exams helped smooth out nerves on test day.
- Bring practical experience into your studies: Review job site documents, contracts, and safety manuals. Real-life scenarios often resemble exam problems, especially on the trade side.
- Don’t underestimate the “easier” test: Candidates sometimes rush through the Law & Business Exam, assuming it’s common sense. Treat both exams with respect.
- Manage your time wisely on test day: Plan to answer every question and circle back to the tough ones later if you have time. Usually, you’ll have enough time to review your answers and catch obvious mistakes.
Industry Insights: What Veteran Contractors Recommend
Seasoned contractors and licensing instructors generally suggest beginning with the Law & Business Exam, especially if you’re building your first business. Understanding your legal and financial responsibilities frames everything you’ll do on-site. It’s not just about passing the test, it’s about avoiding costly mistakes when you’re finally running jobs under your own license.
That said, if you’re in the midst of a big project and your skills are razor-sharp, it might be wise to take your Trade Exam while everything is still top of mind—then transition your focus to business and legal prep before you schedule the second test. In 2025, with flexible exam scheduling and online resources, you’re no longer locked into a rigid sequence, make a choice that aligns with your goals and learning style.
Chart Your Own Path to Success
Passing both the Law & Business and Trade Exams is non-negotiable for launching your contracting career in California. The best order depends on your experience, confidence, and current workload. Take an honest inventory of your skills, set a clear study plan, and remember—becoming a great contractor means mastering both your trade and the business behind it. However you begin, use this period to sharpen your skills not just for the exam hall, but for real jobs and a long, successful career.
Good luck, and here’s to you joining the ranks of California’s licensed contractors!