By Shauna Krause, President, Capitol Services, Inc.
I can assure you the tail does not wag the dog! Contractors with ‘qualifier’ questions might be barking up the wrong tree without expert help…
Q: Our Qualifying Party just informed us he is resigning as of May 31st. We are contemplating our exposure from here. For projects that have already started, can they continue construction after May 31st? For projects that haven’t started work but have started manufacturing at their plant, can the projects be started on site after May 31st?
A: Your license belongs to the Company, not the Qualifying Party. Therefore, you are still licensed once your Qualifier resigns. From his/her date of resignation, the Company has an automatic 90 days to replace the Qualifier. During those 90 days, the license remains Active and you can continue business as usual.
Q: We are currently in process of obtaining a new license for one of our Companies. Our Responsible Managing Employee (RME) who signed up with us has informed us he has found another opportunity he is going to pursue, but he has agreed to remain with our Company until we are up and running with a license. We are affiliated with several other licensed companies within California and we are wondering if we can pull one of the Qualifiers from a Sister Company or one of our Subsidiary companies to also be our Qualifying Individual?
A: Business & Professions code 7068.1 allows for an individual to act as the Qualifier for another Active license- if- one licensee owns at least 20% of the other. So, your “subsidiary” situation will meet that requirement, but the “sister” company situation does not since one entity doesn’t own the other.
Q: It is time to file our Annual List of Officers with the Secretary of State in Nevada. We are a Limited Liability Company (LLC) with one Member which is a Holding Company. We will be listing three “Officers” of the LLC with the SOS. They are not US citizens, I’m not sure if that even matters, but our question for you is do they need to be added to our Contractor’s License in Nevada as well? Currently, we have the Holding Company and an authorized signer listed.
A: NRS 624.250(g) outlines the requirements regarding who must be listed on a Contractor’s License. For LLC’s, any “Managers or Members with managing authority…” are required to be listed on the license. Similar to the regulation in California, all Members and/or Managers who are shown on record with the Secretary of State also must be on record with the Licensing Boards. And just FYI, the US citizenship does not matter to the SOS.
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.
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