There’s an important distinction that confuses people: a journeyman license (JW) licenses you as an individual to perform electrical work. A contractor license (EC) licenses a business entity to perform and contract for electrical work. In most states, you need both - the master electrician license (individual) and the electrical contractor license (business) to legally operate an electrical contracting business.
The contractor license process typically involves: holding a qualifying license (master electrician in most states), forming a business entity, demonstrating financial responsibility (bond), and paying a license fee. Some states require a separate business law exam. The qualifying licensee’s name is on the contractor license - they’re responsible for ensuring the work meets code.
Bonds: the contractor’s bond is a surety bond (not an insurance product - it guarantees performance to the public). Bond amounts range from $5,000 to $25,000 depending on the state. Annual bond premiums are typically 1-3% of the bond amount for contractors with good credit. This is separate from your general liability insurance.