By Shauna Krause, President, Capitol Services
You can split a restaurant check however on approval contractor’s need to complete the license exam in one bite. Let’s take stock of a desire to buy into a contracting business…
Q: Hi Shauna, as you are aware, you submitted a new contractor’s license application on my behalf to obtain a General Building “B” license. I know you said I need to wait for the CSLB to approve my experience before I can sit for the “B” exam, but I was wondering if it was possible to schedule the Law portion now so I can knock that out before I dive into the more difficult exam. Is this doable?
A: Unfortunately, you cannot take either of the exams until the CSLB has approved your experience. I will let you know as soon as I hear something!
Q: I am looking to buy a contracting business in CA. It would be an asset sale. I have plenty of experience on the business side of things, but no experience doing contracting work. It’s a flooring company. How would you suggest I proceed with obtaining the license in my business name? The seller is open to remaining my Responsible Managing Officer (RMO) for a period of one year.
A: You will have to have a Qualifying Individual who either is already qualified for the “C-15” (Flooring) license or can document at least four years of experience within the last ten doing flooring work. I can recommend a Business Broker to you who can also discuss the buy/sell agreement. There are some new requirements for contracting businesses if you are going through the SBA for a loan regarding the Seller remaining on the license as your RMO. Give my office a call and I’ll give you a referral.
Q: My contractor’s license application has been accepted so the CSLB is requesting proof of Worker’s Compensation insurance and a Bond. I don’t have a problem with the bond, but I don’t currently have employees, however as soon as my project starts I will. Should I file an exemption from Worker’s Compensation, or do you suggest I just sign up for a policy now?
A: It’s totally up to you. As long as you don’t have employees you can file an exemption. But as soon as you hire employees, you need to notify the CSLB with a Certificate of Insurance before anyone goes to work.
Q: We have a current and active CA contractor’s license. The RMO on our license is no longer with our company. We are based in Utah, and don’t have any current work going on in CA at the moment, and we don’t anticipate any in the near future. However, we don’t want to get in any predicament with the CSLB. What do you suggest we do from a licensing standpoint?
A: I would suggest that you submit a Disassociation Notice to the CSLB for your RMO. At the same time, you can submit an Inactivation form for your license since you don’t plan on using it in the near future. There may come a time when you need it, who knows what tomorrow may bring?
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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