By Shauna Krause, President, Capitol Services
Trust me, if you’ve worried about an issue in contractor licensing law ten times, I’ve helped fix something just like it a hundred times. Having solved a million client’s issues you can always get a ‘follow up’ for your individual one. In this case it’s an either/or suggestion. Another contractor discovers danger on his jobs determines the answer…
Q: I'd like to place my business in the name of my newly created trust. I have the trust certificate if needed. Is this something your office can handle?
A: You can’t put the contractor’s license in the name of the trust. A contracting business in CA can only be issued to a Corporation, Limited Liability Company (LLC), Partnership, or Sole Proprietorship. However, because you are an LLC, you can list your trust as a Member with the CA Secretary of State and then update the CSLB with that information.
Q: You helped us obtain our contractor’s license and I have a follow up question. Every time that an Officer is added to a company do they need to be added to the CSLB? For example, we have multiple Vice Presidents, do they all need to be listed or is there a way around this? What is the significance of them being on the CSLB?
A: It depends on their title and whether they will be listed with the CA Secretary of State (SOS). VP’s generally don’t have to be added to the CSLB license as long as you aren’t listing them with the CA Secretary of State. The CA Secretary of State and CSLB only require that you list your President, Secretary, and Treasurer. However, there is an option to list additional Officers with the SOS. The short answer is whatever you list with the CA SOS should match what is listed with the CSLB.
The advantage is they would have signing authority for the license, but sometimes that can be a disadvantage too. Such as the ability to sign for removing other Officers from the license.
Q: Is it okay if I file an exemption from Workers' Compensation with my Roofing (“C-39”)license?
A: No, there are certain classifications which require workers' compensation, regardless of whether you have employees or not, and roofing (“C-39”), is one of them.
Q: I have a question. I am a Business Broker and one my client’s has a CSLB license (“License A”) which is no longer needed as he just sold his business. However, he is now Responsible Managing Officer (RMO) Qualifier for Seller (“License B”). May he cancel License A without affecting his ability to act as RMO for Seller (License B)?
A: Yes, he should be able to cancel License A without it affecting License B
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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