Q: My partner just completed the process of replacing me as the RMO (Responsible Managing Officer) on our license so that we can get our certification as a Women-owned small business. In order to keep my qualification, can I reactivate my personal license?
A: I looked up your license and it’s “expired” so you cannot “reactivate” it. After a license has been expired for over five years, it cannot be renewed. You will be required to apply for a new license, however you can request that the CSLB re-issue your old number to you again.
Q: What are the insurance requirements for a new contractor obtaining a license in California?
A: It depends. If your company has California employees, you will be required to show proof of Workers Compensation insurance. In addition, LLC’s are required to show at least $1 million in General Liability insurance.
Q: Is there any limit to the number of classifications I can have on my license? We are considering adding some additional classifications to our “C-20” (HVAC) license to expand our range of services.
A: No, there is no limit to the number of classifications a license can hold. Keep in mind for each classification, you are required to have an individual who can document at least four years of full-time work experience in the specific trade you are applying for.
Q: We need to get a California Contractor’s license for our new Delaware corporation. Are we permitted to use an employee of one of our sister companies as our Responsible Managing Employee (RME), or will the CSLB need to see proof, such as paycheck stubs or W-2’s, to verify the RME is employed by the applying company?
A: While the CSLB does not always request/require W-2’s or proof of employment, per B&P Code Section 7068 your RME is required to be a “bona fide employee” of the applicant. The California Code Section 823 definition of that description means “an employee who is permanently employed by the applicant and is actively engaged in the operation of the applicant’s contracting business for at least 32 hours or 80% of the total hours per week such business is in operation, whichever is less.”
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.