By Shauna Krause, President, Capitol Services
What’s twice as fun as one? An aspiring contractor helps us learn about why it’s important to call and ask for help, or looking before leaping? How do you keep that original number when you’ve been ‘merged’? I also help another contractor discover that despite all the rules and regulations, sometimes the final decision is all yours…
Q: I’m going to be starting two new companies (c-corporations) which will need contractor’s licenses. When I’m setting them with the CA Secretary of State, what Officers will I be required to list?
A: Both the CA Secretary of State and CSLB require that you list the President/CEO (considered the same title), Secretary, and Treasurer/CFO (also considered the same title).
Q: I called your office the other day and received some great information about obtaining my license. For the exams that need to be taken, do I schedule them first, or does the application need to be submitted first?
A: The application needs to be submitted first. The CSLB will need to verify your experience and approve you to take the exams before you can schedule them. That will be a few weeks from the time we submit the application.
Q: Our company was recently purchased by a larger corporation and the plan is to merge our corporation into the purchaser corporation. I’m assuming we will need to apply for a new license? Can we request to keep our current license number?
A: You do need to apply for a new license under the purchaser’s company. B&P Code section 7075.1(c)(1) states a license number may be reassigned to a corporation when the subsidiary has merged into the parent corporation. When submitting the new application, you’ll need to make the request to reassign the license number, obtain new bonds, insurance, etc. Let me know if you would like assistance with the process.
Q: We have made some structural changes to our corporation that involves adding several Officers. We have already updated the Secretary of State with the changes. We plan to file the changes with the CSLB to update our license as well, but it is my understanding that each of the new Officers will be required to get fingerprinted, so the process of adding them to the license could take several weeks. In the interim, are those individuals permitted to sign contracts?
A: To the best of my knowledge, your company ultimately decides who has the authority to sign contracts. I am not aware of any CSLB law or rule that regulates who can and cannot sign contracts on behalf of the company. With that said, as long as your corporation approves of the new Officers signing contracts, have them sign away!
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