RESOURCES, LAW & CODE FROM THE CSLB:

7026. “Contractor Defined”

For the purposes of this chapter, is synonymous with “builder” and, within the meaning of this chapter, a contractor is any person, who undertakes to or offers to undertake to, or purports to have the capacity to undertake to, or submits a bid to, or does himself or by or through others, construct, alter, repair, add to, subtract from, improve, move, wreck or demolish any building, highway, road, parking facility, railroad, excavation or other structure, project, development or improvement, or to do any part thereof, including the erection of scaffolding or other structures or works in connection therewith, or the cleaning of grounds or structures in connection therewith, or the preparation and removal of roadway construction zones, lane closures, flagging, or traffic diversions, and whether or not the performance of work herein described involves the addition to, or fabrication into, ant structure, project, development or improvement herein described of any material or article of merchandise. “Contractor” includes subcontractor and specialty contractor. “Roadway” includes, but is not limited to, public or city streets, highways, or any public conveyance.

7026.1. "Contractor"

The term contractor includes all of the following:

(a)....

(b) Any person, consultant to an owner-builder, firm association, organization, partnership, business trust, corporation, or company, who or which undertakes, offers to undertake, purportsto have the capacity to undertake, or submits a bid, to construct any building or home improvement project, or part thereof.

(c), (d) & (e)

7026.3. Persons who install or contract for the installation of carpet

For the purpose of this chapter, "contractor" includes any person who installs or contracts for the installation of carpet wherein the carpet is attached to the structure by any conventional method as determined by custom and usage in the trade; except that a seller of installed carpet who holds a retail furniture dealer's license under Chapter 3 (commencing with Section 19000) of Division 8 shall not be required to have a contractor's license if the installation of the carpet is performed by a licensed contractor and the seller so certifies in writing to the buyer prior to the performance of the installation, which certification shall include the name, business address, and contractor's license number of the licensed contractor by whom the installation will be performed.

7027. Advertising as a Contractor

Any person who advertises or puts out any sign or card or other device after the effective date of this section which would indicate to the public that he or she is a contractor, or who causes his or her name or business name to be included in a classified advertisement or directory after the effective date of this section a classification for construction or work of improvement covered by this chapter is subject to the provisions of this chapter regardless of whether his or her operations as builder are otherwise exempt.

7027.1. Avertising by unlicensed person; Penalties

(a) It is a misdemeanor for any person to advertise for construction or work of improvement covered by this chapter unless that person holds a valid license under this chapter in the classification so advertised, except that a license building or engineering contractor may advertise as a general contractor.

(b) "Advertise," as used in this section, includes, but not by way of limitation the issuance of any card, sign, or device to any person, the causing, permitting, or allowing of any sign or marking on or in any building or structure, or in any newspaper, magazine, or by airwave or any electronic transmission, or in any directory under a listing for construction or work of improvement covered by this chapter, with or without any limiting qualifications.

(c) A violation of this section is punishable by a fine of not less than seven hundred dollars ($700) and not more than one thousand dollars ($1,000), which fine shall be in addition to any other punishment imposed for a violation of this section.

(d) If upon investigation, the registrar has probable cause to believe that an unlicensed individual is in violation of this section, the registrar may issue a citation pursuant to Section 7028.7 or 7099.10.

IMPORTANT NOTE: The full definition of "Contractor" per this chapter and for the purposes of this chapter is above under Section 7026 and it includes removal, alteration, addition, etc and any work over $500 including labor and materials.