By Shauna Krause, President, Capitol Services
This first one is a puzzle, but can you, expeditiously put your finger on the answer? Meanwhile in Arizona, another contractor isn’t feeling the ‘reciprocity’. An unfortunate outcome for our last contractor as the ‘time and tides’ sometimes go against our wishes for an easy route…
Q: Hi Shauna, we are closing in on the business deal we’ve been discussing with you. As a reminder, we are purchasing an existing HVAC company which currently holds a “C-20” (HVAC) corporate contractor’s license. There are four of us new owners and we plan to create a Limited Liability Company (LLC). We would like to get a new license issued as expeditiously as possible. As we discussed, the current qualifier is planning to stay on with us and be the RMO/Manager for the new LLC. If we were to form a second LLC, which would the four of us would own, and that LLC would own the applying entity LLC and be it’s sole Member, does that eliminate the fingerprint requirement for the four of us?
A: Yes, that would eliminate the need for the four of you to be fingerprinted. Give me a call to discuss how we can set this up to make it work for you.
Q: I have been a licensed “A” (General Engineering) contractor in California for the past ten years. I recently applied for an Arizona “A” license. The AZROC denied my Waiver/Reciprocal request because I didn’t have to take the Trade exam in California. I worked for my Dad for so many years which allowed me to Waive the examination requirement. I did however take the “C-36” (Plumbing) Trade exam in California. Can I apply for the plumbing license in Arizona without the testing requirement? Can I use the same bond I supplied for the “A” application?
A: Yes, as long as you took the Trade exam in California for the plumbing license, Arizona should waive the Trade exam testing requirement for you. The AZROC accepts Bond riders so you can have your bonding company do a rider amending the classification on the Bond you already submitted. You’ll have to amend the Bond amount too because the amounts are different for the specialty classifications. Let me know if you would like assistance with the new submittal.
Q: We have a minority-owned business in California with a contractor’s license. The regulatory agency required us to convert our LLC to a corporation in order to still qualify as a minority-owned business. Can we transfer our license number? We have many projects currently in process so a new license number is not ideal.
A: Unfortunately, the CSLB does not allow for a license number to be transferred from an LLC to a corporation. A new license number is going to be required. You will be required to provide new bonds and insurance as well in the name of the corporation.
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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