By Shauna Krause, President, Capitol Services, Inc.
Beginning with an important issue every contractor should ‘check’ off their list of potential problems on the job. You can contract, or cut grass, but when is a “C-27” going to be required? Ending with a reminder on licensing that comes with a ‘date certain’ so you don’t get caught by surprise…
Q: We currently have a contractor’s license and our business name is somewhat long. Many of our customers have come to know us as a shortened version of our business name and therefore write checks made payable to the shortened version. It’s never been a problem until recently my bank decided to not accept checks made out to a “different company name” than what we are officially registered as. Therefore, I have decided to file a dba (doing business as) with the county to satisfy my bank. I’m assuming I need to file something with the CSLB as well. Will a copy of the completed county dba filing satisfy the CSLB to inform them we do business under this shortened version?
A: You will be required to file a “name change” form with the CSLB. There is a box on the form which instructs you to mark it if the form is being filed for the purpose of adding a dba only.
Q: I am starting a business where we will be doing weekly and bi-weekly yard maintenance. I will not be installing anything, and we will not be repairing yard items such as sprinklers, fences, etc. I will be doing just regular yard maintenance such as lawn mowing, blowing, maybe trimming small bushes if needed, and basic clean up. Someone told me I may need to obtain a landscaping contractor’s license. That’s seems a bit extreme, but even if that’s correct, as long as I keep my jobs under $500, I shouldn’t need a contractor’s license, right?
A: It doesn’t sound like you need a landscaping contractor’s license. What you’ve described is gardening which doesn’t require a license unless you are doing decks, turf installation, fencing, sprinkler systems, etc. Also, just fyi for all consumers and contractors, as of 1/1/25 the ‘Handy-person’ exemption increased from $500 to $1000.
Q: We converted our ’S’-Corporation to a Limited Liability Company (LLC). We submitted an application to the CSLB for a new license and it’s pending, however our current license expires at the end of the month. We never received a renewal and when I looked up the license online it has a notation on it stating the license will be cancelled as of X/XX/25 because the entity no longer exists at the Secretary of State. If an application has been submitted, does that impact the expiration of the current license? Would the expiration date be postponed for as long as the application is active?
A: No, even if you have a pending application with the CSLB for a new license, the expiration date of your current license will remain the same. We always recommend submitting an application as soon as possible when you are considering an entity change due to the potential of things like this occurring.
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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