By Shauna Krause, President, Capitol Services
Let’s keep this one in the family, so let me show you how. Another licensed contractor needs to keep his ‘ID’ while he works in CA and our last question shows how just one wrong move could get you suspended, so let’s not let that happen…
Q: My father-in-law has been a licensed contractor for over thirty years as a Sole Proprietor. It’s somewhat of a family joke how much he likes to brag about his very low license number. He’s going to retire and is wanting to pass down the business to me, as I have worked for him for over 10 years. As his son-in-law, am I able to retain that low license number when he officially retires?
A: Yes, you can request his old number when he’s ready to pass it on. Business and Profession’s Code 7075.1 allows for a license number to be re-issued to an individual when the individual is an immediate family member of the licensed person. The CSLB considers immediate family members to be either a spouse, father, mother, brother, sister, son, daughter, son-in-law, daughter-in-law, stepson, stepdaughter, grandson, or granddaughter.
Q: I am a licensed Idaho (ID) contractor and I am wanting to obtain my CA license. I assume there would be no issue with me using my ID company to do business in CA? Or do I need to form a separate entity?
A: You do not need to form a separate entity to do business in CA. You can register as a foreign entity with the CA Secretary of State and CSLB.
Q: I have a CA contractor’s license for my corporation and I employ an RME as the Qualifying Individual. We are also licensed contractors in the State of Nevada, and we were awarded a contract there which will keep us working full time in Nevada for at least the next year to year and a half. Because we will not be working in CA, is it okay if I cancel our CA Worker’s Comp policy until we move back into the CA space?
A: You can, but if you just cancel the policy it would cause your license to go in suspended status since your Qualifier is an RME (Responsible Managing Employee). I would suggest that you inactivate the CA license which would allow to cancel the policy for now. With an Inactive license you are not required to carry Worker’s Comp or an active bond. When you are ready to reactivate in the future, you will then be required to show proof of both.
***
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