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May an unlicensed person divide one larger project into several invoices to stay below an exemption threshold?

California C-10 exam practice question · Business Organization & Licensing

May an unlicensed person divide one larger project into several invoices to stay below an exemption threshold?

  • AYes, if paid in cash
  • No; splitting changes nothing
  • CNo, because no exemption ever exists
  • DYes, invoice count controls

Why B is correct

License requirements apply to the project undertaken, including labor and materials under the governing rule. Structuring paperwork to conceal the real scope can create enforcement and payment consequences.

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