By Shauna Krause, President, Capitol Services
When it’s time to turn the calendar page to the next year, look at it as a time of renewal.
Each year also brings new rules, some though become a ‘can’ that gets kicked down the road! Sorting out which new law is which is expert work, so let’s form a joint venture and discover solutions in this new year…
Q: Our contractor’s license is up for renewal at the end of February. Can you help us renew it now so it’s one thing off our to-do list for the beginning of the new year?
A: The CSLB does not allow you to renew a license sooner than 60 days prior to the expiration. So unfortunately, you’ll have to keep it on your calendar for the new year. You can renew it starting the first week in January and we would be happy to assist you if needed.
Q: I heard from a fellow contractor that starting January 1st, the CSLB will require all licensed contractors to carry Worker’s Compensation insurance, regardless of whether they have employees or not. It seems I would have received a notice about this from the CSLB if it were true, which I haven’t, so I’m double checking with you.
A: That was the case for a time, however the CSLB decided to push the requirement out until 2028. We will see if it holds true in two years!
Q: We have a Joint Venture license with two other companies. We have a large project currently in process and several on the horizon, however one of the entities wants to be removed from the JV. They have decided to dissolve their corporation in the State of California. Can we simply file a disassociation notice for the entity?
A: The CSLB requires that you notify them in writing within 90 days of the disassociation of any of entities. However, any remaining entity(s) may request a continuance of the license to complete projects contracted for or in progress prior to the date of disassociation. The request for continuation also needs to be in writing and received by the CSLB within 90 days of the entity disassociation. If you meet these conditions, the CSLB will grant you a reasonable amount of time to complete your pending projects/contracts. At the same time, any remaining entities must apply for and obtain a new contractor’s license to undertake new work or continue contracting after the continuance expires.
Q: We are working on the paperwork to obtain a new NV contractor’s license. We are requesting a bid limit of $1 million and above. Can the reviewed/audited financial statement be a draft?
A: No, the financial statement needs to be a final official statement prepared by a CPA and current within the last year at the time you submit the license application.
While knowledge is power, knowing where to go for the answers is half the battle. Get expert assistance immediately when you call 866-443-0657, email info@cutredtape.com, or write us at Capitol Services, Inc., 3609 Bradshaw Rd, Ste H, #343, Sacramento, CA 95827. Search past columns at www.cutredtape.com