By Shauna Krause, President, Capitol Services, Inc.
Bees are going to be busy this Spring, especially the CSL..B. It stings! The Contractors State License Board is buzzing about criminals pretending to be contractors. I also help a contractor with some ‘addition’ and ‘subtract’ a misconception about LLC entities…
For licensed contractors and consumers alike, CSLB SWIFT agents are battling the scams statewide. As noted by the Board, “Our primary goal in conducting sting operations is to keep consumers safe from illegal contracting scams, which is why we encourage them to always check a license and get at least three bids on any home improvement project,” says David Fogt, CSLB Registrar.
I would suggest, however, the Board is also leveling the unfair playing field promoted by unlicensed scammers that takes work away and generates ‘bad feeling’ about all in the industry. As Fogt noted, there is a better way, “Another reason is to educate people on how to get a contractor’s license. Those who want to learn more about getting licensed should attend one of our virtual licensing workshops offered in both English and Spanish.”
Truly, there is more money to be made when you are ‘legit’ as a licensed contractor and much less jail time! In the Marin and Sonoma stings ten were busted for a variety of misdemeanor and felony crimes. Unlicensed contracting fines can be up to $15,000 per offense.
Q: Is there any limit to the number of classifications I can have on my license? We are considering adding some additional classifications to our “C-20” (HVAC) license to expand our range of services.
A: No, there is no limit to the number of classifications a license can hold. Keep in mind for each classification, you are required to have an individual who can document at least four years of full-time work experience in the specific trade you are applying for.
Q: I am at the last stage of obtaining my contractor’s license. I’ve passed the exams, passed the background check, etc. The CSLB is requesting that I obtain an LLC Employee/Worker bond. I received a quote from my bonding company for $3000 for just one year! Even though I’m registered as an LLC my accountant has filed with the IRS to have my company treated as an ’S’-corporation. Two, I do not have employees. Am I still required to obtain this LLC Employee/Worker bond?
A: Yes, you are still required to obtain the LLC regardless of whether you have employees or not, and regardless of how the IRS taxes the Company. All companies who are registered as an LLC with the CA Secretary of State (SOS) are required to have the LLC bond on record with the CSLB.
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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