By Shauna Krause, President, Capitol Services, Inc.
Answers are not always yes, or no. Sometimes, it depends! Let’s talk stress reduction with a qualified answer for one contractor and end the drama for another…
Q: I am interested in selling my contracting business. If I sell, do I keep my license number, or does it go with the sale?
A: It depends on whether it’s a stock sale or an asset sale. In a stock sale, the contractor’s license goes to the buyer and the buyer just makes the appropriate changes (if necessary) to the license. With an asset sale, the buyer is required to obtain a new license. In which case, what happens with your existing license depends on the buy/sell agreement and such. You can give me a call to discuss this further if you’d like.
Q: You recently helped us with replacing our Qualifier after our previous Qualifier passed away unexpectedly. It was a close call so to speak, but thanks to the extension request, we were able to complete the process with no lapse in licensure. Are we permitted to now add a second qualified employee to the license just in case something similar were to occur again? We went through several weeks of being on edge worrying we would be out of work with a suspended license and prefer to not go through that stress again!
A: While you can only have one Qualifier per classification on a license, you are able to have your employee(s) obtain their own personal “back-up” license as a Sole Proprietor. That will allow them to go through the approval process, testing, and fingerprinting so that they can immediately jump on to the company license if you run in to another emergency situation.
Q: We are finding conflicting information on an issue that we hope you can help with. I have recently been hired on with a company who wants to use me as a Responsible Managing Employee or RME. I have a corporation that I’m the Responsible Managing Officer or RMO on. I’ve read where I can be an RMO on up to three licenses, and also read about the requirement to dedicate at least 32 hours per week as an RME. My thought is to keep my corporation active and then at the same time be the RME for the company license because I am already working more than 32 hours per week with them. However, the company is telling me I’m going to have disassociate or inactivate my corporation license in order to become their RME. Can you clarify?
A: The company is correct. An RME can only be active on one license at a time. There are a few situations that allow for an RME to be on two licenses at the same time, but your particular case is not going to meet this limited exception.
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.