For your protection you should be aware that as a "Owner-Builder," you are the responsible party of record on such permits. Building permits are not required to be signed by the property owners unless they are professionally performing their own work. If your work is being performed by someone other than you, you may protect yourself from possible liability if that person applies for the proper permit in his or her name.

Contractors are required by law to be licensed and bonded by the State of California. They are also required by law to put their license number on all permits for which they apply.

If you plan to do your own work, with the exception of various trades that you plan to subcontract, you should be aware of the following information for your benefit and protection:

If you employ or otherwise engage any persons other than your immediate family, and the work (including materials an other costs) is $500 or more for the entire project, and such persons are not licensed as contractors or subcontractors, then you may be an employer.

If you are an employer, you must register with the State and Federal Government as an Employer and you are subject to several obligations including State and Federal Income Tax Withholding, Federal Social Security Taxes, Workers' Compensation Insurance, Disability Insurance costs, and Unemployment Compensation contributions.

There may be financial risk for you if you do not carry out these obligations, and these risks are especially serious with respect to Workers' Compensation Insurance.

A frequent practice of unlicensed persons professing to be contractors is to secure an "Owner Builder" building permit, erroneously implying that the property owner is providing his or her own labor and materials. Building permits are not required to be signed by property owners unless they are performing their own work personally.

If the structure is intended for sale, property owners who are not licensed contractors are allowed to perform their work personally, or through their own employees, without a licensed contractor or subcontractor, only under limited conditions.

The Legislature hereby finds and declares that there is an urgent and statewide public interest in assuring the Building Contractors comply with the Contractor License Law (Chapter 9 - commencing with Section 7000, Division 3, Business and Professions Code) and provisions of law relating to Workers' Compensation Insurance for Building Construction, that property owners are informed about, and protected from fraudulent representations, liability for workers' injuries, liability for material and labor costs unpaid by contractors, licensing requirements, and Employer Tax liabilities when improving their property as Owner-Builders, and that uniformity of enforcement necessitates that the provisions of the chapter apply uniformly statewide.

For more specific information about your obligation under Federal law, contact the Internal Revenue Service (and, if you wish, the U.S. Small Business Administration). For more specific information about your obligation under State law, contact the Department of Benefit Payments and the Division of Industrial Accidents.

Information about licensed contractors may be obtained by contacting the Contractor's State License Board at 800-321-2752.