Capitol Connection Q&A for Contractors - Week of March, 24, 2019

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By Shauna Krause, President, Capitol Services, Inc.

 

We bust a ‘move’ for our first contractor! Share an LLC fact to ‘re-member’ and end up in ‘good standing’ for a NV contractor but it won’t be without a cost…

 

Q:  I’m going to form a new Limited Liability Company (LLC) in California to obtain a Contractor’s license.  I haven’t moved there yet.  Does the LLC need to have a CA address?

 

A:  No, the LLC itself is not required to have a CA address.  LLC’s and corporations are required to have a Registered Agent with a California address.  The purpose of the Agent is to accept court documents on your behalf if the LLC is ever served.

 

Q: I haven’t decided whether I want to get my license as a Sole Proprietor, or an LLC.  Either way, it will just be me on the license.  Are LLC’s required to have more than one member or manager?

 

A:  No, LLC’s can be made up of a single Member, or they have can multiple Members or Managers.

 

Q:  When registering my Nevada corporation with the California Secretary of State, they are asking me to attach a Certificate of Good Standing from my Home State.  I logged in to my NV Secretary of State account, and that document is not part of our initial registration.  Do you know how I go about getting the Good Standing?

 

A:  The Good Standing certificate is something that you have to order and pay a fee for. You can request it on their website under “Online Services”.

 

Q:  Does my Certification of Work Experience page need to be completed by my direct Supervisor or can it be filled out by a co-worker?

 

A:  The Certification of Work Experience page needs to be completed by anyone who has first-hand knowledgeof your work background.

 

Q:  Over the course of my life, I have been arrested seven times.  However, only three of the incidents resulted in convictions. Should I attach an explanation of all seven arrests with my Contractor’s License application, or only those three that turned in to convictions?

 

A:  We always recommend that you include any and all arrests, regardless of the outcome. Better to disclose them than have a “falsified” application and have it rejected!

 

Q:  We are going to be shutting down our Partnership license and obtaining a new license for an LLC.  We are going to transfer our RME from the Partnership license to the new LLC license. It is my understanding that an RME can only be on one license at a time, which means we will need to disassociate him from the Partnership license.  Will the license be immediately revoked once we notify the CSLB of his Disassociation?

 

A:  No. The license will have 90 days to replace the Qualifying Individual.  If the Qualifier is not replaced within 90 days, the license will go “suspended” not “revoked”.  I may also be able to assist in keeping it from showing “suspended” should you need that help. 

 

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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., 1225 8th St. Ste. 500, Sacramento, CA 95814. Research past columns at www.cutredtape.com.                                                             

 

 

 

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