By Shauna Krause, President, Capitol Services, Inc.
Getting the contractor license is just the first step in your learning curve! Rising beyond are rules on employee safety, insurance, bonds, business structures and, of course, taxes.
The complex laws and regulations in doing business as a contractor are kind of like a house of cards. When a card falls, so does the structure. So what now? Let me help…
Q: You've been helpful for me in the past, so I'm reaching out to see if you can provide some guidance. I received a request to renew my contractor license. I paid the renewal fee, then got a letter from the CSLB stating that my corporation license is under Secretary of State suspension. I've never actually performed work under my license, so not sure why it would be suspended. When I go to the CA Secretary of State website it doesn't give me much guidance on how I can get this cleared. Do you have any recommendations so I can get my license renewed?
A: Thank you for contacting me. As a company registered to do business in CA, you are required to file tax returns each year you are actively registered and pay a minimum of $800 to the Franchise Tax Board, even if no work was performed. I see that your corporation is FTB suspended, which means you either haven’t filed tax returns, haven’t paid, or both.
We don’t deal with the FTB anymore, but we used to help with that, and I know from experience what you need to do is contact the FTB to find out which years of tax returns they are missing, how much is owed in late fees and penalties and such and then get them filed and paid. You will also need to file a Certificate of Revivor with the FTB. Once your returns are processed, the FTB will notify the Secretary of State to lift the suspension. Once the suspension is lifted, you’ll be able to renew your contractor’s license.
Q: I recently was granted a continuance of my Father’s Sole Owner license as he passed away last year. The continuance was granted until 6/1. I also applied for my own Sole Owner license, requesting his license number to be transferred to me. My application was approved, and I passed the law exam, but I still haven’t taken the trade exam. I have it scheduled later this month but it’s cutting it very close to the deadline for the continuance. I’m a little nervous if I don’t pass I’ll be without a license, and we have many projects going on right now. Does the CSLB ever grant extensions to the continuances? I’m pretty sure I’ll pass but I’m just thinking about the “what if”.
A: No, unfortunately the continuance is a one-time thing. Whatever date the CSLB decides to give you to continue work with is a hard and fast deadline date. Study, study! And good luck on your exam, I’m sure you’ll do great.
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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