By David Kalb, President of Capitol Services, Inc., Week of 10/26/09
Another important alert for corporate contractors comes with a lesson on ‘un-ringing the bell.’ We learn that once an application is made it’s a ‘done deal.’ First, two contractors are looking at ways to expand their opportunities in these leaner times. As with past downturns looking at new ways to work can lead to better profit in the future. Another contractor is considering a ‘risky’ business opportunity…
Q: I want to expand the type of projects my company can go after and want to apply for the Asbestos and Hazardous Certifications. I hold a “B” and “A” license. Will I have any problem? Do I need to pass any test? What qualification will I need to show the Contractors Board?
A: Only a select few classifications can apply for the Hazardous Certification. These are the “A”, “B”, “C-12” (Earthwork and Paving), “C-36” (plumbing), “C-57” (well drilling) and the “C-61”/”D-40” (Service Stations Equipment and Maintenance). There are no such class restrictions for the Asbestos (ASB); however, even after you qualify for the ASB, you must also register with the Division of Occupational Safety and Health (DOSH) to actually do the removal. Each Certification has an examination but there is no requirement that you document your experience qualifications.
Q: I've Googled my questions and consistently come up with your website. I've read countless of your Q&A and it seems like you really know what you’re talking about. Some of my questions were answered; however, here is one question I am unsure of:
I have a corporation, which has a dba. I want to start another company doing a little different type of work with my “B” license. Can I get a second dba under my corporation and use my current license number for both?
According to the person who answered the phone at the CSLB I have to start another corporation and transfer my license. But, I still need my license for my first dba. I’m very confused.
A: Thank you for the email. I am glad you were able to locate answers to some of your questions on my web site (www.cutredtape.com).
To advertise and contract under another business name (dba) you will need to apply for a second license. This new entity would be under the existing corporation; however, it will be assigned a different license number by the CSLB. Regulations do not allow you to use the same license number for more than one dba. In my opinion, there is no need to start a new corporation.
Q: Our application was just accepted by the State Contractors Board (it took us over two months). This is for a corporation and we listed our President, Secretary and Treasurer as required. One of the officers has decided he no longer wants to be involved and asked us to remove him from the application. The person we spoke with at the CSLB said this is going to be a problem. Can’t we just notify the Board and have his name removed?
A: Once an application is posted (accepted) by the CSLB, the personnel cannot be changed. If you drop this officer, the application will be voided and you’ll need to start all over again. If he reconsiders and agrees to stay on the application until the license number is issued, you could then remove him with no problems. When any change is made to your list of officers with the CSLB, also make sure to make the same changes to your Statement of Information with the Secretary of State. However, as I indicated in a prior column, there are some ‘scam’ companies sending bogus forms to CA corporations, which appear to be the official Statement of Information. Don’t be fooled. If you have any question abut the validity of the document you’ve received contact the Secretary of State, California Department of Justice or Capitol Services for assistance.
Knowledge is power. Knowing where to go for the answers is half the battle. Get expert assistance immediately when you call 916-443-0657, email firstname.lastname@example.org, fax (916) 443-1908, or write me at Capitol Services, Inc., 1225 8th St. Ste. 580, Sacramento, CA 95814.