Capitol Connection Q&A for Contractors - Week of 9/8/2025

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By Shauna Krause, President, Capitol Services

A contractor willing to give up his sole for the corporation! I share a loophole some contractors might slip through, give some good news to a contractor willing to sacrifice for his family, less than happy news for a Canadian venture…

Q: I have been licensed in CA for the last 7+ years under a personal Sole Proprietor license as an electrical contractor. I set up a corporation recently and want to get everything transferred over to the corporation, however I’m also very interested in obtaining my NV contractor’s license. Will it be a problem that the majority of my license history in CA is as a Sole Proprietor? I’m looking to qualify for Reciprocity and wouldn’t want to have to wait for another four years after my license is transferred to the corporation.

A: Thank you for contacting me. If you took the equivalent trade in CA, and have been actively licensed as the Qualifier on any license in CA for the previous four years, you should qualify for a Waiver of the trade exam and experience requirements. The Business/Law exam would still be required. 

Q: We received our contractor license renewal in the mail. It appears it’s only set up for us to have Worker’s Compensation insurance. We’ve been Exempt as we don’t have any employees. How do I address the section asking for Worker’s Comp information?

A: You should be able to ignore that section. The CSLB will look up your license to see what you have on record. This exception won’t apply to many as Comp requirements have changed recently so this may not apply to your particular situation depending on Trade or Class. Call me, let’s talk! 

Q: I had a contractor’s license several years ago and I let it expire because I moved to AZ to take care of my aging Mom. I’m back in CA now and was wondering if there’s any chance I can get the license back. 

A: I hope your Mom is doing okay. You can renew your license, depending on how long it’s been since it expired. If it has been less than five years, you can still renew it. If it’s been more than five years, you would be required to re-apply for the license and retest. Let me know if you would like our assistance, either way!

Q: Can a revoked license be reinstated?

A: It really depends on the circumstances of the revocation. I need further information to answer that question. Please call my office to discuss!

Q: I was referred to you by my attorney. We are entering into a potential contract with another contractor to do a public project in CA. If we were to form a Joint Venture, would that work? Our company is a licensed contractor in CA, but the other entity is a Canadian company who is not licensed in CA.

A: It doesn’t appear that it will work. Both entities would need to be licensed to obtain a CA Joint Venture license.  

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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

 

 

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