A roofing business in California has more risks than almost any other trade: falls, expensive insurance and strict rules. One review a year helps you catch problems before they cost you a fine or an accident.
Print this checklist and go over each item with your team.
In short
- C-39 (roofing) contractors must have workers' comp even if they have no employees.
- In construction, OSHA requires fall protection starting at 6 feet; Cal/OSHA adds rules for roofs.
- Figure out your real cost per square so you can bid right.
- In home improvement, the down payment can't be more than $1,000 or 10% of the price, whichever is less.
- Review your license, your policies and your company documents every year.
Step 1: Legal structure and documents
Start with the basics: your company exists and is in good standing. If the state suspends your company, you can't sign contracts with peace of mind. Review each item and check the box.
- ☐ My CSLB C-39 license is active and in the correct name.
- ☐ My LLC or corporation is active with the Secretary of State and the FTB.
- ☐ I filed the Statement of Information (the company's information report) on time.
- ☐ I paid the $800 annual minimum tax to the FTB.
- ☐ My corporate record book is up to date. Read more in corporate record book for LLCs and corporations in California.
- ☐ I have a bank account just for the business.
The Secretary of State requires the Statement of Information within 90 days of forming the company. After that, it is filed every 2 years for an LLC and every year for a corporation. The $800 minimum tax applies to LLCs and corporations; confirm your case with the FTB.
Step 2: Insurance and workers' comp
Workers' compensation (workers' comp) insurance pays medical bills and wages if someone gets hurt on the job. On a roof, that risk is real every day.
- ☐ I have workers' comp even if I have no employees (required for C-39).
- ☐ The policy is on file with the CSLB.
- ☐ My real payroll matches what I reported to the insurance company.
- ☐ My general liability insurance does not exclude roofing.
- ☐ I have commercial auto insurance for my trucks.
- ☐ I ask each subcontractor for a certificate of insurance.
The case of the C-39 license
As a roofing contractor with a C-39 license, you must have workers' comp even if you have no employees, according to the CSLB. If you had an exemption and you hire someone, send proof of coverage to the CSLB within 90 days.
If your coverage lapses, your license is suspended. If you have no coverage and you have employees, the penalty is $1,500 per employee or twice the premium, whichever is greater, and there can be a stop order (Labor Code 3722). Read more in workers' comp in California. To compare policies, see the insurance page.
Step 3: Fall protection
In construction, the federal rule (OSHA 29 CFR 1926.501) requires fall protection starting at 6 feet. In California, Cal/OSHA has specific rules for roof work (Title 8 §1730 and §1731). This is your OSHA and Cal/OSHA fall protection checklist for roofing in one list.
Low-slope roofs (almost flat)
- ☐ Guardrails, warning lines or personal fall arrest systems.
- ☐ Trained safety monitor, when the rule allows it.
- ☐ Covers or guardrails on skylights and openings.
Steep-slope roofs
- ☐ Personal fall arrest system (harness, lanyard and anchor) checked.
- ☐ Anchors installed and approved.
- ☐ Scaffolds or ladders in good shape and well secured.
For the whole team
- ☐ Every worker got fall protection training this year.
- ☐ I have a signed record of the training.
- ☐ We check the equipment before every use.
- ☐ There is a rescue plan if someone is left hanging from the harness.
What changes in California
California has its own safety program, Cal/OSHA, with roofing rules in Title 8. These rules add to the federal ones and can be stricter in some points. If you are unsure, ask a Cal/OSHA specialist before you go up on a roof.
Step 4: Finances and costs
A square is 100 square feet of roof. Knowing your cost per square is the base for bidding. It is the roofing version of job costing: how much each roof cost you and how much it earned you.
Example: a 25-square roof with asphalt shingles
| Item | Total | Per square |
|---|---|---|
| Materials | $5,500 | $220 |
| Labor with taxes and workers' comp | $5,000 | $200 |
| Debris and permit | $1,000 | $40 |
| Fixed expenses (10% of sales) | $1,600 | $64 |
| Total cost | $13,100 | $524 |
If you bid $640 per frame ($16,000), your net profit would be $2,900, or 18%. These figures are an example with made-up numbers to show the idea; use your own.
- ☐ I know my real cost per square.
- ☐ I review the profit on each job when it's done. Read more in profitability for contractors.
- ☐ My books are reconciled every month. A bookkeeping service helps you with that.
- ☐ I set money aside for estimated taxes.
Step 5: Contracts and processes
A clear contract avoids most arguments with the customer. For home improvements, California law sets rules for the contract and the down payment (CSLB).
- ☐ My home improvement contracts are in writing and include my license number.
- ☐ The deposit is no more than $1,000 or 10% of the price, whichever is less.
- ☐ I explain the workmanship warranty in writing.
- ☐ I take photos before, during and after every job.
- ☐ I have a process for signed change orders.
Deposit example: on a $16,000 roof, 10% would be $1,600. Since $1,000 is less, the maximum deposit is $1,000.
Common mistakes in a roofing business in California
- Thinking that without employees you don't need workers' comp.
- Going up on the roof without protection "because it is a quick job."
- Quoting out of habit, without knowing your cost per square.
- Asking for 30% or 50% deposits on residential jobs.
How to organize the annual review
A checklist only works if someone uses it. Pick a fixed date, for example before the rainy season, and block out a full morning.
Who reviews what
Imagine a team of five people. The owner checks the license, insurance, and contracts. The crew lead checks harnesses, anchors, and ladders. Whoever keeps the books checks reconciliations and pending payments. This is an illustrative example; adapt it to your team.
Keep the proof
- Keep copies of policies, subcontractor certificates, and training records in a single folder.
- Scan signed contracts and change orders at the end of each job.
- Write down the expiration date of each document on a shared calendar.
If a client, an insurer or an inspection asks you for a document, you'll have it on hand. That order also helps your books reflect what really happened on each roof.
What to do now
- Print this checklist.
- Check each box with your team.
- Write down what is missing and set a date to fix it.
- Repeat the review every year before the rainy season.
FAQ
Does a roofer with no employees need workers' comp?
Yes. In California, contractors with a C-39 license must carry workers' comp even without employees, according to the CSLB. If your coverage lapses, your license is suspended. Confirm your case with your insurance agent or the CSLB before renewing your policy.
At what height is fall protection required?
In construction, OSHA requires fall protection starting at 6 feet. In California, Cal/OSHA rules for roof work also apply, in Title 8, sections 1730 and 1731. Ask a Cal/OSHA specialist about your type of roof.
How much of a deposit can I ask for on a residential roof?
In home improvement, the down payment can't be more than $1,000 or 10% of the contract price, whichever is less. For example, on a $16,000 roof, 10% would be $1,600, so the maximum is $1,000. Put it in writing in the contract.
When to talk to a professional
This article is a general guide. If your case involves a letter from the IRS, the FTB or the EDD, a lawsuit, an accident or a change in your business structure, talk to a lawyer, a tax preparer (CPA or enrolled agent) or the official agency. Every case is different.
How ODC helps you
At Oficina del Contratista we keep your bookkeeping up to date: we record your income and expenses, reconcile your accounts and explain your reports in Spanish. For taxes, payroll, insurance or legal matters, we connect you with independent partners; they provide those services, not ODC. See all services.
Do you know how much each roof leaves you? We help you keep your books up to date so you can see it clearly. Message us on WhatsApp.
References
- OSHA – 29 CFR 1926.501 — Fall protection from 6 feet in construction
- OSHA – Residential fall protection FAQ — Questions about residential fall protection
- Cal/OSHA – Title 8 §1730 — Roofing rules in California
- Cal/OSHA – Title 8 §1731 — Roofing rules in California
- CSLB – Workers' compensation requirements — Workers' comp required for C-39 and proof of coverage within 90 days
- CSLB – Home improvement contracts — Contracts and down payments in home improvement
Runs Oficina del Contratista, a Spanish-language bookkeeping service for contractors. Has experience in management, sales and construction consulting.
Important notice: this article is educational and informational only; it is not legal or tax advice. It may contain errors or be out of date. Before making decisions, check it with a licensed expert or attorney.
