By Shauna Krause, President, Capitol Services
Deadlines in contractor regulations are no joke. So, better now than later in moving the paperwork ahead. Another contractor gets his ‘steps’ in without taking 10,000 paces!
Q: Our Nevada contractor’s license expires in two days! I went online to renew it and realized the NSCB still has our old entity registration number on record. We converted to a new LLC and the new entity has a new registration number with the Nevada Secretary of State. Are we still able to renew the license?
A: You can probably still go through the online renewal process and submit it, however you need to submit an application for conversion asap. The renewal will likely not be accepted being the entity doesn’t exist anymore, but they should process it once they receive the conversion application.
Q: I currently hold a CA Sole Proprietorship license on Inactive status. I have some work coming up now so I want to reactivate it, however my CPA has recommended I contract under a corporation instead of a Sole Proprietor. Do I need to pay to reactivate the Sole Owner license first, and then notify the CSLB I have formed a corporation? Or what is the process?
A: Thank you for contacting me. You do not need to pay to reactivate the current license. If you own at least 51% of the corporation, you are permitted to transfer your Sole Owner license to the corporation, even if it’s on Inactive status. The first step would be to register the corporation with the CA Secretary of State and file a Statement of Information. The next step would be to apply for a “new” contractor’s license with the CSLB and include the form titled “Request for License Number Reissuance”. Let me know if you would like assistance with the process!
Q: Our Responsible Managing Officer (RMO) on our license is going to retire at the end of the year. We are struggling to find an individual within our company who meets the CSLB requirements for acting as a Qualifier, i.e. at least one year of hands-on practical experience. We are a General Engineering contractor, however we sub-contract all of our work out, therefore we don’t have anyone internally with “in the field” experience. It seems our only option is to hire someone who holds an “A” (General Engineering) qualification. I understand this individual would be required to work for us for at least 32 hours a week, which is not ideal for our situation. Is my understanding correct? Secondly, we want to ensure we are really required to hold the ‘A’ license when we are not self-performing any of the work?
A: If your newly designated Qualifier is an RME (Responsible Managing Employee), they would be required to work a minimum of 32 hours a week, or 80% of the company’s operating time, whichever is less. If you were to give the individual an Officer title and designate him/her as RMO (Responsible Managing Officer), there would be no hour requirement. The RMO is still responsible for overseeing work and is required to be actively involved in the business. To answer your second question, based on the description of the work you do, if you are acting as the prime contractor on jobs, you are required to have the “A” license even if you are not self-performing the work. The entity signing the contract as well as the entity performing the work both need to be properly licensed.
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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