By Shauna Krause, President, Capitol Services, Inc.
I assist contractors in many states, but primarily in AZ, NV and CA. However, this year calls from other states are rising. A contractor license is like an elevator, raising your opportunity to new levels, but does it have a Hold button? A NV business sale prompts questions about change, let me help line up the hoops to jump through…
Q: Hi Shauna, thank you for helping me get my license for our Corporation a couple of years ago. We have kept up with Worker’s Comp, Bond, and we provide health insurance to our family business. We also do some property management, but have stopped taking construction jobs. I’m wondering about putting the license on hold. Would it be difficult to unfreeze it at a later date? I have heard it could be hard to get back, but I’m not sure that is true. We would remain in business, but not build anything for a bit. Any advice?
A: Nice to hear from you. You can always put your license on "Inactive" status which allows you to not have to keep the bond up, you don't need to notify the CSLB of your Worker's Comp, and the renewal only comes up every four years as opposed to every two years. You can always reactivate it in the future by paying the reactivation fee and updating the Bond and Worker's Comp if needed.
Q: I recently sold my Nevada contracting business. I agreed to remain the Qualifying Individual for a period of 90 days while the Buyer gets the business and license in order. I’m inquiring with you about two immediate needs now that he is the owner. 1) He would like to change the business name on the license, so we are wondering how to go about doing that, and 2) I want my name removed as a Principal on the license (while remaining the qualifier for the 90 days). Can you let us know what needs to be done to complete these updates?
A: I would be happy to help. To change the business name on the license, he would first be required to change the name with the NV Secretary of State (SOS). Because you want to be removed as Principal, I would suggest at the same time he is filing his name change with the NV SOS, he should also file a new annual list of Officers to remove you from the SOS records and add himself. Once the filings are completed at the SOS level, you can then submit a name change application to the NSCB, and at the same time submit an Officer update application to remove you and him. The Officer update application will not remove you as the Qualifying Individual, you will just be removed as Principal. When you are ready to be removed as the Qualifier as well, you will need to submit a Notice of Disassociation. The disassociation is required to be filed within 10 days of your resignation from the company. Once you resign, the Buyer will have 30 days to replace you as the Qualifier on the license. Let me know if you need further assistance!
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