By Shauna Krause, President, Capitol Services, Inc.
You may not realize it, but contractors have the world by the tail, as your opportunity is virtually unlimited! However, that doesn’t mean everything is an ‘open book.’ And limits are real so what goes here maybe doesn’t go there. That’s why having expert assistance is always a great idea…
Q: Is there any limit to the number of classifications I can have on my license? We are considering adding some additional classifications to our “C-20” (HVAC) license to expand our range of services.
A: No, there is no limit to the number of classifications a license can hold. Keep in mind for each classification, you are required to have an individual who can document at least four years of full-time work experience in the specific trade you are applying for.
Q: Our corporation is a licensed contractor in Nevada. We are in the process of changing from a standard ‘S’ Corporation to an Employee Stock Ownership Plan (ESOP). Do we need to do anything to update our Contractor’s License?
A: A change in ownership does not require that you update your Nevada Contractors License. However, I am not a tax advisor or attorney so suggest you research changing from an ‘S’ Corporation to an ESOP and if it would warrant a new Federal Identification number. That change may trigger a new application be submitted as your ‘business entity’ is now a different structure.
If your entity changes or if your Officers change, you are required to report it to the Nevada Contractors Board to update your license.
Q: When submitting an application for a new license, approximately how long after the application is submitted should I expect to be approved to sit for the exams? And are the exams open book? I’m trying to plan for study time.
A: You will likely be approved to schedule the exams about 6 weeks after the application is submitted, and no such luck on the open book though! You are not permitted to bring any material in to the exam with you.
Q: My brother-in-law is a “C-10” (Electrical) qualifier. He recently left the company he worked for, and he and I are going to start an electrical company. Does it matter what we name the business? He seems to remember the CSLB having an issue with his former Company’s business name and there being some back and forth which delayed the licensing process. We don’t want to run into any of that!
A: The CSLB is very particular about business names. Your business name of course cannot be misleading (i.e., you will not be able to call it “ABC Plumbing”), and it also cannot be too “general” such as “ABC Services” or “Systems Inc”. Most anything with “Electrical”, “Electric”, “Power”, “Controls”, etc. in the name should work for a “C-10” contracting business. You’ll want to check the business name with the CA Secretary of State as well to make sure it’s available for use
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 email@example.com, or write us at Capitol Services, Inc., 3609 Bradshaw Rd, Ste H, #343, Sacramento, CA 95827. Search past columns at www.cutredtape.com.