By Shauna Krause, President, Capitol Services, Inc.
Don’t we all worry about ‘financial’ statements? Another contractor is also hoping for a ‘bonanza’ in Nevada. Did you know adding a ‘DBA’ is just the first step in changing a business name? Some ‘corrections’ may be needed…
Q: I am in the process of filling out a Nevada Contractor’s License application for my boss. I’m worried about the Financial Statement that is required. My Boss is working on getting his Work Experience pages completed and notarized, but I don’t know how long it is going to take him. Our reviewed Financial Statement is dated December 31, 2018. I’m just worried that by the time they get to our application for review, it will be over 12 months. Our 2019 financial will not be ready until at least April 2020. Do they have any sort of grace period?
A: While they don’t have any kind of grace period, as long as you get your application submitted by the end of the month, they go by when your application was received, not by the date when they actually review it.
Q: We have a California license and we are going to be applying for a Nevada license. In California, we posted cash deposits in lieu of Bonds. Do you know if Nevada offers the cash deposit option as well?
A: Yes, they do! Same as California, the cash bond must be in form of a Cashier’s check for the full amount of the required Bond. Unlike California though, Nevada charges a biennial administrative fee of $200 for holding the cash deposit. While California will hold your cash deposit for three years after the cancellation/expiration/termination of a license, Nevada will hold it for two years.
Q: If we add a DBA name (doing business as) to our contractor’s license, is it then required that ALL business be performed under that DBA name? Do we need to change our signage and advertisements?
A: Yes. The rule with a DBA, as far as the CSLB is concerned anyway, is that you must do business as your whole entire name, meaning your business name along with your DBA, or just your DBA name. Your ‘correct’ business name must be part of any advertising, signage, etc.
Q: We have a “C-39” (Roofing) license. Originally, we had applied to use the name “…Construction”. The CSLB rejected our application and stated our business name could not use the word “Construction” without it being reflective of our classification. I understand that. My intention was to add the “B” (General Building) classification after the Roofing license is up and running. So, once I have my license issued as “…Roofing”, and I apply for the “B” classification, will my business name still be acceptable, even though my business name specifically implies “Roofing”?
A: Yes. it will, only because you already have the Roofing classification. Just as an FYI, you could also add a DBA once your “B” classification is issued. As I told the previous inquirer, you would be required to do business as your whole entire name, OR just the DBA. Let me know if you would like our assistance.
Contractor’s Renewal fees:
The CSLB has proposed an Emergency Regulation filing to amend the Section regulating renewal fees. Currently, to renew a license active, the fee is $400. The new proposal will raise the active renewal fee to $450. Inactive license renewals would be raised from $200 to $225.
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. Research past columns at www.cutredtape.com.
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