Capitol Connection Q&A for Contractors - Week of August 21/2023

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By Shauna Krause, President, Capitol Services, Inc.

When an entity goes from one thing to another hopping off the corporate ‘bus’ with a transfer may be the smoothest route to success. Another contractor asks a ‘taxing’ question I won’t answer however I can share some license info on a Bond and wrap with a lesson on agents, registered agents…

Q: I own a licensed ‘S’-Corporation with a “C-6”  license. I also own a Limited Liability Company (LLC) which will soon be 100% in my name. Do I need another license for the LLC, or can I use my ‘S’-corp license? I want to operate the business using the name of the LLC.

A: You cannot use your corporation’s license to operate as the LLC entity. Each entity needs its own separate license. If you meet the requirements, you can possibly transfer your corporate license number to your LLC, or you can get a separate license number for your LLC. Contact my office and we can discuss the different options.

Q: I am a Sole Proprietor General building contractor. I have been doing some research regarding switching my license to either a corporation or an LLC. It seems what I’ve been finding is most contractors go with corporations rather than LLC’s. Is that your experience as well? Do you know why that would be? I was leaning towards LLC for tax purposes but I’m not sure that’s the best choice as a Contractor. Do you have any advice?

A: I am not a tax professional so I cannot give you advice on which entity type is best for you. In my experience, in the more recent years, the amount of LLC applicants vs. corporate applicants is pretty close to the same. Prior to 2012, the CSLB didn’t license LLC so because of that, if you are looking at how many current licenses are LLC’s vs corporations, there are likely more corporations.

From a licensing perspective, keep in mind LLC’s have an additional Bond requirement so that may be another reason contractor’s steer away from that entity type. That being said, the tax benefits may outweigh the cost of that extra bond, so bottom line, contact a tax professional for more solid counsel on this matter.

Q: I've been an Electrical Contractor in Utah since 2007, but I am interested in doing work in Nevada. To do work there I need a Nevada Electrical Contractors license which requires a physical address in Nevada. How do I overcome this?

A: To obtain a Contractor’s license in Nevada, you are not required to have an address there, but you are required to have a Registered Agent who has a NV address. There are companies that act in that capacity for you for a minimal fee. In CA Capitol Services acts in this capacity for contractors based outside the Golden State.


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, or write us at Capitol Services, Inc., 3609 Bradshaw Rd, Ste H, #343, Sacramento, CA 95827. Search past columns at