Capitol Connection Q&A for Contractors - Week of 1/6/2025

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By Shauna Krause, President, Capitol Services, Inc.

New year new learning curve for contractors! I spend hundred of hours keeping up with new license law, and new interpretation of current rules in the industry in those 365 days. That way contractors can focus on their jobs and I can help them, and build license law knowledge here…

Q: I was referred to you by our Attorney. We are potentially going through a restructuring where our two ’S’-Corp contracting business will be reorganized into two Limited Liability Companies (LLC) I want to make sure we have continuance of license and like to learn more about the process. Our business will remain the same and personnel as well. I know we have to apply for a new license but can probably waive the exam and request for a continuance of the same license number. I’m hoping you can confirm my understanding so far and wonder if you have time to chat about some of our concerns with the process.

A: Absolutely, I’d be happy to assist you. Assuming your current licenses are in good standing and you are keeping the same personnel for the new LLC’s, both with the CSLB and the CA Secretary of State, you should be able to transfer the license numbers from the corporations to LLC’s. 

No exams will be required for the Qualifiers assuming they aren’t changing. There should be no break in licensure in the process, however we will want to confirm that you don’t need to renew the licenses before you complete the reorg/restructure. Give me a call at your convenience and I can look up the licenses to confirm and also address any other concerns you have. 

Q: I obtained my “A” (General Engineering license about seven years ago. I used experience alone to meet the requirements since I had worked for a licensed General engineering contractor for over four years. I marked a box on the application stating I have a four-year degree, however I never submitted my transcripts (even though the application instructed me to), and the CSLB never requested them. I would like to add the “B”( General Building) classification to my license. I don’t have four years of experience of doing building work, but I have worked closely with building contractors on jobs performing the work in conjunction with our ‘“A” work. Plus, I built my own house alongside General building contractors. I would say I have at least two years of verifiable general building experience. Can I use my four-year business degree to count for the remaining two years? I wasn’t sure if me marking that box for my existing license precluded me from claiming that again.

A: If you never submitted transcripts when you obtained your “A” license, I assume the CSLB must have determined your experience was sufficient so you can still use your transcripts for future applications. More important would be to make sure your remaining two years of practical experience are definitely verifiable.  

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While knowledge is power, knowing where to go for the answers is half he 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

 

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