By Shauna Krause, President, Capitol Services
Most license questions are complex, others not so much! Whatever may be puzzling you is likely a question I can answer. Together we can find the way. Sometimes experience is key to getting your license, sometimes not. Another contractor learns that a deadline is serious business!..
Q: We are acquiring a contracting business as an asset sale. The license is currently issued to a corporation, and we will be forming a new Limited Liability Company (LLC) instead of a corporation. Can the NewCo qualify as a foreign entity if we want it to be registered as a Delaware entity as its home state? Or must a new CA LLC be formed?
A: Either way is acceptable. Easy!
Q: I have been flipping homes for the last five years. I’m looking to obtain a “B”(General Building) contractor’s license and a “C-15” (Flooring) license. If I have one of the general contractors who assisted me on the flips sign off on my work experience, will the Contractor’s State License Board consider my experience, for me to obtain my own license?
A: They will consider it, but it’s highly unlikely it will meet the requirement to qualify for your own license. This is considered owner-builder experience, and it will only count if you can prove that you were performing trades (framing, flooring, drywall, painting, etc), managing sub-contractors, making construction decisions, and running the job as a contractor. With a General Building contractor on the flip jobs you did, the CSLB will likely assume the general builder was performing these duties. They will most definitely ask you to provide permits that were pulled in your name with inspection reports, and have you complete specific project list forms. Secondly, usually flipping homes is part-time. You are required to show at least four years of full-time work experience doing the work at journeyman level or above. So, harder than it looks.
Q: I applied for my license at the end of 2023. I was approved to schedule the exams and took the Law exam in February 2024. I attempted the Trade test a few times but didn’t pass, and then I just eventually let the application go void because I got busy. I’m ready to re-apply now, do you think my Law exam results will still be good?
A: It is my understanding that if you never get added to a license, your test results are only valid for two years. Bummer, looks like you just missed the deadline!
Q: We have several HIS (Home Improvement Salespeople) who are waiting on their registrations to go through. They are all out of State so they did the physical cards and mailed them in. One individual forgot the fee, so the prints were rejected, and another individuals were returned for low quality. We’ve already been waiting for months to get these completed. Is there any way to expedite this process? I thought it was going to be simple!
A: For the two individuals whose fingerprints were rejected, you can have them fly to California and have them do the live scan fingerprinting, and those usually clear within 72 hours. There is no way to expedite the hard copy fingerprint submissions.
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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