By Shauna Krause, President, Capitol Services, Inc.
I hazard an answer on where the ‘buck stops’ when you are a Responsible Managing Officer, and help apply a ‘remedy’ for another who may have just bought himself a headache. First, lets offer an, either/or, option to a contractor who wants to keep his license in the family, maybe…
Q: I have a Sole Proprietorship license. Looking forward to someday retiring, can one of my sons automatically take over the business in the future or do they need to be working for me in order to take over? In the event they do not want to continue the business, will I be able to sell my license?
A: An immediate family member can request to have your license number transferred to them, however if they are looking to take advantage of the family waiver (of the exams), they would have had to of worked for you for at least five years. If they are not concerned about the waiver option, they can still request your license number and take the exams, but they still need to have at least four years of experience in the trade. If you are considering selling your business to someone other than a family member, you would likely want to consider obtaining the license as a corporation or LLC. Holding the license as a corporation or LLC allows you to sell the business to family members OR the general public. You should probably contact a business broker or an attorney for more information on selling a business and the entity type best suited to your need.
Q: We currently have a “C-21” (Demolition) license and want to add the HAZ and Asbestos certifications to our license. Can we have a different employee take the exams for the HAZ and Asbestos certifications, or does it have to be the current Responsible Managing Officer (RMO)?
A: The individual must be an existing Qualifier holding a classification on the license they are adding it to. The HAZ and ASB certifications are not stand alone certifications.
Q: We acquired a licensed business and have applied for a new license using the Qualifying Individual who currently qualifies the business we acquired. The CSLB has requested that he disassociate from the current license in order for the new entity to officially be licensed. However, the currently licensed company still has projects going on. How do companies typically handle this for such acquisitions?
A: You can delay the submittal of the disassociation for a bit. Once the CSLB requests that from you, you aren’t required to provide it right away, they will keep the application for the new company pending/active for a period of time while you are still working under the current license. However, that obviously delays the issuance of the new license! Be aware that once he disassociates from the current license, that license will have 90 days to continue operating which is usually enough time to finish work in progress.
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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