Capitol Connection Q&A for Contractors  Week of October 24, 2022

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By Shauna Krause, President, Capitol Services, Inc. 

How can you keep your license number ‘relative’ when it’s ‘low’ down?  Expert assistance gets it done! A lawyer gets ‘guidance’ in achieving his goal, while I ‘bang the drum’ once more on upcoming changes for contractors in the New Year... 

Q: I am the qualifier on my company’s license, and I also have a personal/Sole Owner license with a number that is low. I don’t plan to use my personal license again in the future as I’m part of the Union and they have rules against operating outside of the Union. Am I able to give the license to my brother who is also a licensed contractor? 

 

A: A Sole /Owner license number can be transferred to a family member if the license holder is retiring (or if they pass away) and the license number is necessary to continue a family business. Since that isn’t the case (thank goodness), if you were to transfer your Sole Owner to a Corporation or Limited Liability Company (LLC), and then have your brother take over the license, he would be able to operate with that low number. It’s a multi-step process but it would get you the result you are looking for!

 

Q: I am an Attorney, and my client is selling his contracting business. The buyer is planning to convert the entity from a Corporation to an LLC. The concern which is making all parties nervous is the seller has had some bad experiences in dealing with the CSLB in the past and has advised us that this transfer process may take longer than expected, therefore exposing the company to some risk of being unlicensed or not properly licensed. 

In his experience, applications are frequently rejected, and I was hoping you could give us some guidance on what issues we may run into. What would cause the application to be rejected?

 

A: There are all kinds of reasons why an application may be rejected. However, keep in mind that most of the time a CSLB “rejection” is just a request for a correction or further information. One of the most common reasons for an LLC application to be rejected is the Secretary of State filings not being done, or not matching the information reflected on the license application. I am happy to assist with the license transfer process which gives you a thick layer of protection from running into any of the “issues” the parties are concerned about. 

One Last Time! Bond increases take effect on January 1, 2023. Also starting on that same date, concrete (“C-8”), HVAC (“C-20”), asbestos abatement (“C-22”), and tree service (“D-49”) contractors will be required to have worker’s compensation insurance, regardless of whether they have employees.

Any questions? 

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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. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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