By Shauna Krause, President, Capitol Services, Inc.
I will enlighten a long, complex question with a straightforward solution. I assist another contractor who is confused about his name, and I begin with a ‘general’ question and expert answer…
Q: We currently have a “B” (General Building) license and are looking to also obtain an “A’” (General Engineering) license. Do we complete the Application for Original Contractor’s License?
A: If you are looking to add the “A” classification to your existing license, you would actually complete an Application for Additional Classification. The Original license application is completed if you are applying for a brand new license number.
Q: We have a fictitious name filed with the County. When filing for a new Contractor’s license, should the company name include our fictitious name or just the out-of-state Corporation’s name?
A: The company name should be your registered name as reflected in your Home State. If you are using a ‘dba’ (doing business as) name in CA, that will follow your corporate name (example: ABC Inc. dba XYZ).
Q: I have both a Sole Proprietor license in California as well as one for the company I work for, both licenses holding the “B” (General Building) and the “C-20” (HVAC) classifications. I’m not using my personal license however I want to keep it active. I received a notice from the CSLB stating that my Sole Prop license is going to be suspended come July 1st if I don’t attach Worker’s Comp Insurance. I (obviously) don’t have employees, so I called the CSLB to explain the situation and they suggested that I just remove the “C-20” from my personal license. When I asked them if this would cause the company to also lose the “C-20”, they said no. I’m not understanding this and I’m hoping you can further enlighten me. Aren’t I lending my license to the company? Therefore, actions such as removing a classification or failing to pay a renewal fee will in turn influence the company license as well?
A: I understand your thinking here, but you aren’t “lending” your personal license to the company. You have to think of it as two separate entities, there’s you, and then there’s the company. Actions such as removing a classification from one of them, adding a classification to one, non-renewal, etc. does not affect the other. Being that you are qualified for the “B” and the “C-20” classifications, that qualification is with you outside of any licenses. Even if you were to remove the “C-20” from both licenses, you would still be considered qualified for that classification for a period of five years. So, you are lending your qualification to the company, not your license.
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While knowledge is power, knowing where to go for the answers is half he 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