Capitol Connection Q&A for Contractors - Week of March 6, 2023

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By Shauna Krause, President, Capitol Services, Inc. 


Not just No, but #%’ No! I also help a contractor on a renewal issue, discover how much trust is necessary in an LLC and am always ready for your call, emergency or not…


Q: We just received our renewal for our license and I’m noticing our previous CEO is still listed on the license. He left the company over a year ago. I read that we have 90 days to notify the CSLB of an Officer leaving the company? What will happen now that we’ve gone well over the 90 days? Are we subject to automatic suspension?


A: As long as your CEO is not also the Qualifier, you should be fine. The CSLB doesn’t discipline the license if you do not notify them of an Officer leaving within 90 days (although they have the authority to, they generally don’t). You can submit a disassociation notice for the former CEO along with the renewal application. Be sure that both the renewal and the disassociation are signed by a current Officer on the license. If you have a new CEO, you will also eventually want to add him/her to the license.


Q: Does the CSLB allow for a Trust to be listed on a license if the Trust is the actual owner of the LLC?


A: Yes, that is permissible. If you list a Trust as the “Member” on the license, that also needs to be reflected on the Statement of Information filed with the CA Secretary of State (SOS ) for the LLC. In addition, you will be required to provide documentation showing who the Trustee is and that individual will need to sign the license application paperwork.


Q: We have several companies with contractor licenses in California. If one of the entities merges into another one, are we required to update the CSLB with any information?


A: With limited information it doesn’t sound like you would need to make any updates to the surviving entity’s license as long as the Personnel are remaining the same. As far as the entity merging, you can cancel the license if you want, or it will be automatically cancelled 60 days after the CSLB is made aware or discovers that the company no longer exists.


Q: I have a quick and easy question for you that I think I know the answer to but I thought I would ask anyway. Am I allowed to bid on work while I have an application for a new license in the works?


A: My quick and easy answer is absolutely not! You cannot bid on or perform any contracting work until you are officially licensed!


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