By David Kalb & Shauna Krause, Capitol Services, Inc.
Despite what a contractor may believe is the right direction, misinformation about their contractor’s license can often lead to a ‘dead end’. Like the ‘GPS’ of contractor’s licensing law we can help you get to your destination. Another contractor needs expert ‘directions’ to Nevada…
Q: I have some work opportunities coming up, but need a California contractor's license. Is it legal to work under my father's contractor’s license using my own business name? Since he is the sole owner of his business, would he need to get Worker’s Comp Insurance if I use his license? And would I need to buy my own liability insurance or would the work fall under his? Any direction and advice in this regard would be greatly appreciated. Thank you.
A: Sorry, but you cannot use your father's license number. State law prohibits an individual to loan or give their license to another person. There are generally three options if you want to pursue these "work opportunities": a) you and your father can apply for a partnership license; b) your father can hire you as an employee (but he would need to sign any contracts and obtain Worker’s Compensation coverage) or c) your father can form a corporation and you could be appointed as an Officer.
Q: My wife and I and our son have a class "A" license as partners. My son is the Qualifier on this license and we’re thinking of getting a new license with my wife as the Sole Owner and my son as the Qualifier. We also plan on keeping our current license. Can we do this?
A: No, this can’t be done as you described. If your wife will be the sole owner, this would make your son a Responsible Managing Employee. As a RME, the CSLB would not allow your existing license active to remain active. The license could be cancelled or inactivated.
Q: I am the RME on my employer’s contractor’s license. I was just appointed Vice President and would like to know what I need to do regarding the Contractors Board. I see online they have an Application to Report Officers. Is this what I need to file? What happens with the existing bond?
A: While it would seem to be logical to make this change by completing an Application to Report Current Officers, this is not the form you need to file. You must complete an Application to Replace the Qualifying Individual thereby replacing yourself on this license. Your existing Bond of Qualifying Individual (BQI) can stay the same; however, if you own 10% or more of the company, the BQI can be cancelled.
Q: You helped me get my CA license and you are currently assisting me with obtaining my Nevada license. I was curious if Nevada has a system such as the CSLB’s where you can check the status of your pending application online?
A: Unfortunately no. If you do not have a current Nevada license, you will not be able to check status online. However, once your license is issued you can register this number with the NV Contractors Board. In turn, this will allow you to renew your license, update your address, and check the status of many future applications online.
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., 1225 8th St. Ste. 580, Sacramento, CA 95814. Research past columns at www.cutredtape.com.
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