By Shauna Krause, President, Capitol Services, Inc.
A shout-out from a distance on what’s what in CA contractor licensing gets us started.
As I have shared in the footer to this page for many years, ‘knowledge is power’. So, not asking what you are unsure of would be the first mistake, second not learning from an expert! Especially one with license for all the ‘classy’ answers…
Q: Hi Shauna, we are an out of state construction manager and are unfamiliar with the licensing laws in California. We do not self-perform any work, but basically find the sub-contractors, hire them, and manage the job for homeowners. Would there be any reason for our company to obtain a CA contractor’s license?
A: Thank you for contacting me. I would assume based on your description you are signing contracts with the homeowners as well as the sub-contractors to provide construction management services, in which case, yes, your company would require a California contractor’s license. Let me know if you would like our assistance with the process!
Q: This may sound like a stupid question, but our current Responsible Managing Officer (RMO) disassociated from our license. We were surprised when we received the notice in the mail this week. If we want to bring someone on but not appoint them as an Officer so they would be an Responsible Managing Employee (RME), do they need to be a direct employee of the company, or can they be a 1099 employee?
A: There are no ‘stupid’ questions, except the one not asked! That is a common question I get. If you hire an RME to act as your Qualifying Individual, they are required to work at least 32 hours a week, or 80% of your company’s operating times, whichever is less. They should be employed by the licensed entity and not a 1099 employee.
Q: How many classifications am I permitted to add to my license? I currently have a ‘B’ General Building license and I’m looking to add C54 (tile), C20 (HVAC), and C21 (Demo).
A: There is no limit to how many classifications you can add to your license. You just need to document at least four years of experience in each of the classifications you are adding. You would be required to do one classification at a time and take the trade exams for each. Contact me if you have further questions or if you’d like our assistance with the process.
Q: I am a licensed Idaho (ID) contractor and I am wanting to obtain my CA license. I assume there would be no issue with me using my ID company to do business in CA? Or do I need to form a separate entity?
A: You do not need to form a separate entity to do business in CA. You can register as a foreign entity with the CA Secretary of State and CSLB.
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While knowledge is power, knowing where to go for the answers is half he 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