Capitol Connection Q&A for Contractors - Week of March 31, 2019

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By Shauna Krause, President, Capitol Services, Inc.

Sorry to say, but sometimes the ‘parts’ don’t add up to the whole ‘experience’. Confused? No wonder its contractor license regulation we are talking about…

Q: I would like to explain what my company does and see if you have any advice or an opinion. I own a business that contracts with vacation home owners to come in after their rentals check out to inspect the place for any damage. Usually these owners live out of town and their occupants “rent” the property for an extended period of time. We will come in clean and make any minor repairs. Some examples are repairing a hole in the wall, minor drywall and paint touch ups, we’ve done door replacements, minor plumbing (such as leaks in the sink), snow shoveling, minor tile repair, etc. A large majority of what we do does not require a Contractor’s license, or the repairs fall under the $500 rule. In the instances where we have been asked to perform work that would require a Contractor’s license, we have a circle of contractors that we refer to our clients and they work directly with them. However, as this is coming up more often, I’m thinking my company should obtain a Contractor’s license so we can take on this work ourselves. Based on what I’ve described (I’ve done all of this repair work for over 5 years), would I qualify for a Contractor’s license?

A: As you may know, there are many types of licenses in CA, from General Building, to specialized classifications such as drywall. In order to qualify for any license, you must document at least four years of full-time work experience in that particular trade. Since you are doing a variety of trades depending on the specific need, you would have a hard time showing four years of full-time experience in any one trade.

Q: I’m really confused about an application we have pending with the CSLB. We are a sole member managed Limited Liability Company (LLC). Our only Member is a Corporation. The CSLB sent us a form to complete called “Designated Signatory” form. The form came with a letter stating an individual needed to sign on behalf of our Sole Member (the Corporation). Does it matter what title this person should hold? And will this individual have to do fingerprinting and the background check?

A: The Designated Signatory can be any official Officer or Director of the corporation (Sole Member) that you intend on designating “signing authority” for the license. The individual you designate does not need to be fingerprinted and go through a background check. Only the individuals who are direct personnel of the applying entity (the LLC) need to be fingerprinted.

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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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