By Shauna Krause, President, Capitol Services
Contractors must be masters of change, as time, work and regulation demand they roll with the punches. Good to have an expert in your corner. I dive into a pool question, and discover a question that’s a knockout for me, but still offer this contractor a solution…
Q: I represent a contracting company who just went through an F-org re-structuring. They changed from a California corporation to a Delaware Limited Liability Company (LLC), and now we need to notify the CSLB. My first question is, because we formed a new entity, the existing corporation has been terminated with the CA Secretary of State. Is it okay to keep working with our existing license while we are going through the update process with the CSLB? My second question is, can we keep the same license number?
A: To answer your first question, the CSLB allows time with 90 days to notify them of a change in entity type. Your existing license will remain Active during the 90-day period. Unfortunately, you will be issued a new license number. When you change jurisdictions, the CSLB does not allow you to transfer the license number from your CA corporation to a DE LLC. Let me know if you’d like assistance with the application process!
Q: We need a California contractor’s license ASAP. Is there a fee that we can pay to expedite the application process? I heard it takes something like six months. When we registered our company with the CA Secretary of State we were able to pay an additional $350 to have it done within 24 hours.
A: The CSLB does not offer the option to pay an additional fee for automatic expediting yet. While the licensing process can take up to six months, that is not standard. The CSLB is fairly caught up right now.
Q: Hi Shauna, I was referred to you by one of my colleagues who has worked with you in the past. He suggested I contact you to ask you a question I have. As a licensed “B” contractor am I permitted to build a swimming pool for a residential home?
A: As a General Building contractor, you would not be permitted to self-perform the construction of a swimming pool. Swimming pool construction is considered a specialty trade and not a component of the “B” license. To contract for a pool construction job, you would need to either hold the “C-53” (Swimming Pool) classification, hire a licensed “C-53” swimming pool contractor to perform the work, OR oversee the construction of the pool and it’s solar heating system or other feature of the project unrelated to the swimming pool trade.
Q: You recently helped me with obtaining my “B-2” Remodeling contractor’s license. Do you also assist with drafting an acceptable home improvement contract? I just want to cover all my bases and not be in any “hot water” with the CSLB.
A: No, I do not assist with that. However, the CSLB has a sample home improvement contract on their website. I would recommend checking that out!
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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