By Shauna Krause, President, Capitol Services, Inc.
What can you do in Arizona that you can’t do here? We also help contractors with questions on LLC and foreign corporations, and we ‘raise’ the spirits of a Nevada company looking for work in California…
Q: I have worked as a journeyman handyman/contractor for almost a year in California and I just recently moved to Arizona. I have done renovations and repairs on my own house over the years and then started my own handyman business almost a year ago. I want to obtain a contractor’s license in Arizona so that I can do bigger projects but I don’t have the four years of full-time work experience. What can a person do if they need a license to do work but they don’t have the experience? Is there a type of license I can get to gain the experience in order to eventually obtain the broader General Building (“B”) license?
A: Yes there is! While you’re correct that the “B” license requires four years of experience, Arizona has many specialty classifications that do not require that you document four years of experience. For example, the flooring (“CR-8”) license requires three years of experience, and the Painting (“CR-34”) license only requires two years of experience. In your case, you may be interested in the Minor Home Improvements (“R-62”) license that doesn’t require any experience at all! The “R-62” allows you to do remodeling, repairs and improvements not exceeding $5000. No structural work can be performed. Electrical, Plumbing, AC, Heating, Boilers, and Roofing must be performed by appropriately licensed contractors. Let us know if we can help as we work in Arizona, Nevada and California regularly.
Q: You helped me in the past with my previous company I did consulting work for. I’ve joined another company on a full time basis now. We’re contemplating setting up a subsidiary for which we will need to obtain new contractor licenses. I know that there’s some additional cost/complexity for using Limited Liability Company (LLC), but I was wondering if there was any benefit/detriment related to using a California corporation as opposed to a Delaware corporation.
A: That would be something that you would want to consult an attorney or your accountant about. With regards to the CSLB and the licensing process, the difference between applying as a California corporation vs. a Delaware corporation would be the personnel listed on the application. Foreign corporations are required to list only their President and Qualifying Individual on the application, while California corporations must list their President, Secretary, Treasurer, and Qualifying Individual on the application.
Q: I am a crane and rigging contractor in Nevada. Here it’s a “C-14i” classification and there was only a Business exam that was required. One of my customers is requesting my services in California so I need to get licensed. I checked a couple of competitor’s licenses in CA and they both have an “A” (General Engineering) license. Is that required to perform crane and rigging services in California? I’m worried that I would not be able to pass the trade exam since I have no knowledge of Engineering outside of the crane business I’ve run for the last 10 years.
A: While a General Engineering contractor can operate cranes and material hoisting equipment, the “A” license is not required in your case.
The “C-61”/”D-21” (Machinery and Pumps) classification allows you to install, remove, modify or repair pumps; conveyer; cranes; dock levelers; various hoisting and material handling equipment.
***
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., 1225 8th St. Ste. 500, Sacramento, CA 95814. Research past columns at www.cutredtape.com.