Does a California plumbing LLC need a $100,000 bond?

Yes. Business and Professions Code §7071.6.5 requires every LLC licensee to file a $100,000 surety bond for the benefit of employees and workers damaged by the LLC's failure to pay wages, interest on wages, fringe benefits or other contributions. It is in addition to the $25,000 contractor's bond and is required for issuance, reissuance, reinstatement, reactivation and renewal of the license (inactive licenses are exempt).

The same statute scheme also requires LLC licensees to carry general liability insurance of at least $1,000,000 (more above five personnel of record, capped at $5,000,000). Corporations, partnerships and sole proprietors do not file the $100,000 bond. If you are considering converting to an LLC, price both bonds and the liability policy before the conversion date so the license is not interrupted. Details and a request form are on the LLC bond page.