Modesto Contractor Business License
Everything contractors need to know about the Modesto business license — renewal dates, fees, and how to apply.
License Details
June 30 (fiscal year July 1 - June 30, renewal due July 31)
Commercial business license: $50/year. $100 deposit required. $4 state fee. Quarterly mill tax: 0.002 x gross receipts. Home/outside business: $75/year.
Fee Structure
Annual license fee + quarterly mill tax on gross receipts. Contractors must report quarterly (not eligible for annual reporting). Mill rate: 0.002.
Notes
Contractors MUST report quarterly — not eligible for annual reporting. Must file Declaration of Gross Receipts each quarter even if zero. General contractors must attach subcontractor adjustment form to renewal. Late penalty: 5%/month up to 25% max.
Statewide Obligations
Beyond city requirements, all California contractors must meet these state obligations.
| Obligation | Agency | Cycle | Amount |
|---|---|---|---|
| Contractor License Bond | Contractors State License Board (CSLB) | continuous | $25,000 |
| Bond of Qualifying Individual | Contractors State License Board (CSLB) | continuous | $25,000 |
| LLC Employee/Worker Bond | Contractors State License Board (CSLB) | continuous | $100,000 |
| Seller's Permit | California Department of Tax and Fee Administration (CDTFA) | Quarterly (default); Monthly if >$100K annual tax; Annual if <$1K annual tax | No fee for permit; sales tax rate varies by location (7.25%-10.75%) |
| Personal Income Tax Return (Form 540) | Franchise Tax Board (FTB) | Annual | Progressive tax rate: 1%-13.3% on taxable income |
| LLC Annual Tax & Fee | Franchise Tax Board (FTB) | Annual | $800 minimum + LLC fee tiers: $0 (<$250K), $900 ($250K-$499K), $2,500 ($500K-$999K), $6,000 ($1M-$4.99M), $11,790 ($5M+) |
| S-Corporation Tax Return (Form 100S) | Franchise Tax Board (FTB) | Annual | $800 minimum franchise tax or 1.5% of net income, whichever is greater |
| C-Corporation Tax Return (Form 100) | Franchise Tax Board (FTB) | Annual | $800 minimum franchise tax or 8.84% of net income, whichever is greater |
| Estimated Tax Payments | Franchise Tax Board (FTB) | Quarterly | Based on estimated annual tax liability |
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