By Shauna Krause, President, Capitol Services, Inc.
We start with an ‘either, or’ question, get some ‘props’ from a contractor couple and go over the border to save another some bucks! Don’t question yourself, lean on a friend or believe in rumor when you can get expert answers to your contractor licensing questions for CA, NV and AZ every time you contact me…
Q: Our Qualifier was let go from the Company yesterday and we want to have one of our other employees replace him on the license. The other employee has his own license however he is not listed as an Officer of our company. Does that mean he needs to be an RME instead of an RMO? I’m just wondering because he is concerned about the “hour” requirement for RME’s.
A: That is correct. If he is not an Officer of the company, he will be an RME (Responsible Managing Employee). Therefore, he will be required to Inactivate his own license, and he will be required to work at least 32 hours a week, or 80% of the Company’s operating time.
Q: My husband is a Contractor and he and I read the articles you supply for the weekly bulletin we receive. My husband wanted me to reach out to you to explain his current situation and ask a few questions. He is a Sole Proprietor using a fictitious business name, which is what shows up on the CSLB’s website. We live in a small rural area, and with the COVID-19 situation, he started advertising as a Handyman business, which is not reflected on his license. First question is, does the CSLB need to list all three names – his name, and both fictitious business names? Number two, what business name would he use in his advertisements? Lastly, he is thinking of Incorporating. Does he have to get a new license or can he keep his current license?
A: Thank you for contacting Capitol Services Inc. and thank you for reading the weekly columns. Your husband cannot have multiple “dba” attached to the same license. Since he is a Sole Proprietor, he is listed as the sole owner, and he can name the business anything he wants (as long as doesn’t imply he is performing work outside of the scope he is permitted with the classification he holds). If he wants to operate under two different business names as sole proprietor, he would need to obtain a second license number for the second “dba”. As far as advertisements, he needs to advertise under the business name exactly as listed on the Contractor’s License. If he decides to Incorporate, he has to complete an application as if it’s a new license, but if he owns at least 51% of the corporation, he has the option to transfer the license number to the Corporation, or obtain a new license number. Thanks again, let us know anytime we can assist.
Q: We are in the final stages of obtaining our Contractor’s License in Nevada. We received our “Contingent Letter of Approval” and it is asking for us to pay $200 in to the “Residential Recovery Fund” if we will be residential contractors. What constitutes “Residential” work? We often do work on Apartment complexes and multi-family homes.
A: If you are signing contracts with Homeowners, you are considered a Residential Contractor. If you will not be signing contracts with Homeowners in Nevada, you should sign the Affidavit for Non-Residential Contractor form, and the $200 is not required.
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. Research past columns at www.cutredtape.com.
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