By Shauna Krause, President, Capitol Services, Inc.
Let’s jet! An interesting question will require an additional expert in creating this ‘structure’ change. A sudden loss will prompt a need for change in license status. While it’s not good advice to argue with the law, sometimes it’s a ‘singular’ point to be made…
Q: If a company water jets a septic/sewage line, is a Contractor’s License required?
A: As long as there are no alterations or repairs done to the sewer line it is acceptable to hydro jet lines without a Contractor’s license.
Q: If we want to change from an ‘S’ Corp to a ‘C’ Corp, what would that entail? Can we keep the same Contractor’s License number?
A: The CSLB doesn’t concern themselves with whether you are ‘S’ or a ‘C’ corp. While we do handle corporate registrations with the Secretary of State, we also don’t get involved in whether you are ‘S’ or ‘C’ corp. It is my understanding that it’s a tax election so each files taxes differently. The corporation stays intact therefore the Contractor’s License would as well. From my brief research, you can change your filing status at any time but if you want it effective for a particular year, you must revoke your ‘S’ election by the 15th day of the 3rd month of that tax year. Not a tax expert, you’ll want to contact a CPA for more information on corporate tax structure.
Q: My husband recently passed away and he had an active Contractor’s License. I’m not even sure when it’s up for renewal but I don’t want to keep paying for it so is there a way to cancel it?
A: Sorry to hear about your loss. Yes, there is a license cancellation request form that you can complete. Since your husband is the only one with signing authority on the license, you would need to sign it and submit with a Death Certificate. I looked up the license and it expires at the end of this year. The CSLB doesn’t automatically charge you so you really aren’t paying for anything at this point. You may decide rather than bother with the cancellation, just let it expire. I’m sure you have enough on your plate anyway.
Q: I am an Oregon contractor and I started a business years ago that is highly specialized. I have called the CSLB several times and I’ve been told I need a “C-8” Concrete license, or a “C-61”/”D-12” (Synthetic Products) license. I don’t agree with either of those. I believe the “C-61”/”D64” (Non-Specialized) would be more appropriate. How do I go about obtaining that license being that it doesn’t really have a “title”?
A: Anytime anyone applies for a “D-64” license, the CSLB requires that they answer four questions: 1. What are you performing, installing, replacing, and/or repairing? 2. How is it being performed, installed, replaced, and/or repaired? 3. What materials, tools, and/or equipment are being used? 4. What does the contract say you will do for the customer? Or, what is the scope of work to be performed?
Based on the answers to these, the CSLB will determine the appropriate classification and if they determine the “D-64”, they will assign it a “title” specific to the type of work you are doing.
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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. Research past columns at www.cutredtape.com.
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