By Shauna Krause, President, Capitol Services, Inc.
I share a CYA situation. Cover Your Assets, what did you think? Two birds with one form! License timing is second, and we’ll keep the last question ‘all in the family’…
Q: I sold my contracting business as an asset sale, so my Company still exists, but part of the deal was they took the dba name and I am no longer to operate under that name. However, there are no provisions which exclude me from continuing to do new construction (the business which I sold does restoration work). Do I need to disassociate from my current license and obtain a new license? I need to update my business address as well.
A: If the buy/sell agreement just excludes you from using your ‘doing business as’ (dba) name, you should be able to just remove the dba name from your license, which is a simple name change form. Conveniently, the name change form is the same form you use to update your address!
Q: According to the CSLB’s website, they are working on license applications received a week ago. We are looking at doing a project that starts early next month, preferably under an entity that isn’t yet licensed. Is it possible to get licensed by then given that they are processing applications so quickly?
A: That depends on several factors. Even though the CSLB is caught up right now, there are still requirements outside of their processing time that need to be addressed such as bonding, fingerprinting, and whether your Qualifier will need to sit the exams or not. With that being said, it is unlikely that you would get licensed in less than two weeks, but it’s possible the application would be approved and ready for the additional requirements by early next month. The license is issued shortly after the additional requirements are provided.
Q: I am the owner and Qualifier for my Corporation. My Wife works on and off in the company as needed. In the interest of getting things in place for our 16-year-old to take over eventually and also in the event that something should happen to me, should I add my Wife and our Son to the license now?
A: You can certainly add your Wife on the license as an Officer now and that will be beneficial in the event that something happens to you. The company will have 90 days to replace you as the Qualifier and your wife could fill that role (assuming she’s qualified), or at least sign the paperwork to authorize someone else to become the Qualifier. Your Son will not be able to be added as an Officer until he is at least 18, and cannot become the Qualifying Party until he is at least 22.
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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.