By Shauna Krause, President, Capitol Services, Inc.
A smooth ride to reciprocity means keeping the cart behind the horse! I also answer an ‘SOS’ from another contractor with a paperwork ‘jam’, and share a ‘graceful’ ending…
Q: I need to associate my “A” (General Engineering) license with another company. After ten years with my current company, I will be acquiring another entity and moving my license to that company. I submitted my Disassociation Notice for the current Company today, knowing it will take the CSLB a few weeks to process it. I would like your assistance with obtaining the license under the new company, and at the same time obtaining a Nevada license with Reciprocity. Please let me know what I need to do.
A: As always, I’m happy to help. Give me a call so we can go over all that is needed/required. Regarding Nevada and Reciprocity, if you already filed a disassociation from the current company, you are not going to qualify for Reciprocity unfortunately. Nevada’s reciprocal agreement requires that you be Actively licensed in one of the reciprocal States for the previous four years straight, with no gaps. Filing the Disassociation is going to create a gap. Again, happy to help though so please contact me to discuss further.
Q: We have a CA Corporate Contractor’s License and we just recently converted to an LLC. I called the CSLB and was informed that because the registration number at the Secretary of State (SOS) is going to change, we are required to obtain a new license. However, the registration number actually didn’t change. I checked with the SOS and they told me they recently updated their system so that now when a Company converts, they keep their registration number. Does that mean we can file a simple name change with the CSLB?
A: Unfortunately, no. Even though the registration number stays the same, it is still a new entity and therefore requires that you apply for a new license. You can transfer the number though under certain circumstances. Feel free to contact my office so we can go over whether you would meet the transfer requirements.
Q: Is there a grace period to continue operating as a Corporation with a Contractor’s License when the entity has converted to an LLC?
A: I wouldn’t necessarily refer to it as a “grace period”, but the license does not automatically cancel. The law requires the CSLB to cancel the license 60 days after the Contractors Board discovers your corporation is no longer valid with the Secretary of State. My recommendation is always to notify the CSLB as soon as possible when planning a merger, conversion, or change in entity type!
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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.