By Shauna Krause, President, Capitol Services
Change today, change tomorrow, contractor regulation is always evolving as new law, revised interpretations and technological change force it. Limited Liability Company (LLC) licensing is one example in CA. Fire safety in many states another, financial and bonding updates almost everywhere…
Q: My Partner and I are going to be forming a new LLC that will need a General license. I currently have a corporation license so we plan to utilize my “B”(General Builder) qualification for the new LLC. We are discussing if it would be better to have the LLC owned directly by our two corporations, or us personally. Our lawyer has suggested we have both of us as individuals listed on the LLC documents and license for signing purposes. He suggested it’s more difficult to sign contracts and other agreements when everything on record only shows entities and not individuals. The problem we have with that suggestion is we do not want to have to pay Worker’s Comp insurance, as we will have no other employees. Do you know if we were to be listed as Members or Managers whether we need to pay Worker’s Comp for ourselves?
A: Managers and Members who are listed as such are excluded from the Worker’s Compensation requirement. You can file an exemption with the CSLB.
Q: We are interested in obtaining a Fire Protection license in Arizona (“CR-16”). Some States require that you have a certain fire sprinkler pipe fitter installer certification to qualify for the license. Does Arizona require any special certifications? What about for Electrical (“CR-11”)?
A: No, the AZROC just requires that you have at least four years of experience in the trade you are applying for, and you pass the appropriate Trade exam and the Statutes and Rules training course.
Q: We spoke the other day, and you were very helpful in outlining the requirements for our Company obtaining a Nevada contractor’s license. You mentioned the need for a CPA prepared financial statement based on the size of projects we are looking at doing there. We are a small business and my “tax guy” is not a registered CPA. Can my financials be done by an IRS “Certified Agent”?
A: Unfortunately, no. For the monetary limit we discussed of over $1 million per project, you will need to have a reviewed or audited financial statement prepared by a CPA current within the last year. The NSCB will check their CPA license.
Q: We recently renewed the CSLB bonds we have in place with our surety provider for our current contractor’s license. Do we need to share this information with the CSLB and if so, how do we go about doing that?
A: Your bonding company should be notifying the CSLB the bonds have been renewed. I have never heard of a bonding company not doing this as part of the renewal process.
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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