By Shauna Krause, President, Capitol Services
Don’t panic, a Pass/Fail isn’t the end of the world. Another contractor is asking if a ‘house’ divided can still stand up? An out of state firm may be getting ahead of the curve, while I suggest a solution to a question outside of my scope…
Q: I took the Nevada State Contractor’s exam for the “A” (General Engineering) license and didn’t pass the Trade portion of the exam. The exam administrator told me I have two more attempts to pass. I’m not anticipating failing the exam three times, however what happens if I do? Do they automatically consider me unqualified?
A: The NSCB gives you three attempts to pass the exams. If you don’t pass on the third try, your application is withdrawn and you are required to resubmit. You can submit the same application you previously submitted with a new fee. You are not deemed unqualified, in fact the approval process to schedule the exam should be quicker the second go-round. Hopefully it doesn’t come down to that though, good luck on your exam!
Q: We have a “B” (General Building) and a “C-51” (Structural Steel) license, and it’s been in good standing since 1966. I have been an Officer and part owner of the family business since 2006. My Grandpa joined the Union back when he was running the company, but due to recent changes, I’m looking to exit from the Union which may take some time. In the meantime am I able to obtain my own license and be ‘waived in’ based on my association with the company for twenty years now?
A: Yes, since you have been an Officer on the license for over five years, you can apply for your own license, either in your own personal name as a Sole Proprietor, or form a corporation or Limited Liability Company (LLC), and request a Waiver of the “B”, “C-51”, and Law exams.
Q: You helped me register my corporation with the Secretary of State (SOS) and I’m now obtaining an EIN (Employer Identification Number) for the company. Can you tell me what the difference between an ’S’ Corporation and ‘C’ Corporation is?
A: You may want to defer this question to your CPA or tax advisor because there are different tax implications to each. However, my basic understanding is ’S’ Corporations do not pay Federal income tax, instead the profits from the company are passed through to the owners and the owners are taxed personally. With a C Corporation, the corporation pays its own Federal taxes and owners also pay taxes on dividends received. Again, consult with a tax advisor on which would be most appropriate corporation type based on your situation.
Q: You submitted applications for us this week to update the Officers on our license. The two Officers we are adding will be in CA next week for a job walk on a project we have coming up. Will they be able to get fingerprinted while they are here?
A: I wouldn’t count on it. They need the pre-printed live scan request forms from the CSLB to bring with them to a live scan facility. It’s unlikely the CSLB will have reviewed the applications and sent the request forms in time for them to complete the requirement by next week. Let me check with them though and see if there is any way they can process the applications asap to accommodate the officers’ trip to California. I will let you know as soon as I hear back.
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