Capitol Connection Q&A for Contractors - Week of February 27, 2023

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By Shauna Krause, President, Capitol Services, Inc.

I will cross borders with our first two contractors and share some things we have in common. And some we do not! Here closer to home I will outline how an LLC gets to keep the license when unexpected departures occur and how to avoid losing one in a merger…

Q: Does Nevada have reciprocity with other States? 

A: Nevada has reciprocity with some States. The reciprocity agreement allows for a waiver of the trade exam if the Qualifier has been actively licensed in one of the reciprocal states for the previous four years. Reciprocal states are Alabama, Arizona, California, Connecticut, Florida, Hawaii, Louisiana, New Mexico, North and South Carolina, Tennessee, and West Virginia. The Qualifier is still required to take the Construction Management exam.

Q: I am an electrical contractor in Nevada, I currently have a “C-2a” and “C-2g” license. I’ve had the license for over five years. Will I qualify for reciprocity for a “C-10” license in CA?

A: Unfortunately, the electrical classification is only reciprocal from NV to CA if you have the full “C-2” classification in Nevada for over five years. The sub-categories are not a part of the reciprocal agreement.

Q: I am a sign fabricator and installer and I just set up an LLC to run a new business. I have a friend who is a sign contractor with “C-45” license. Can he be the Responsible Managing Officer (RMO). to get another license for the LLC? And how can I keep the license under the LLC if my friend were to retire or something were to happen to him?

A: As long as your friend owns at least 20% of your LLC, then yes, he can qualify for both your LLC license and his own license at the same time. The LLC License will belong to the LLC, so if your friend retires or something happens to him, the license will remain with the LLC, and you'll have 90 days to replace him with yourself or someone else.

Q: We have current licenses in CA, NV, and AZ for our corporation. We are planning to create a new LLC in which the existing corporation will be merged in to. Once the merger is complete, are we able to keep our license numbers in those States and how do we go about notifying the State Boards?

A: Each State is different with regards to the requirements for a merger. It sounds like you will most likely be able to re-assign your CA license to the LLC. However, Arizona and Nevada will require that you obtain new license numbers for the LLC. Please contact my office and we can discuss your particular situation in further detail.

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