By Shauna Krause, President, Capitol Services
To paraphrase Mick Jagger, ‘you can’t always get what you want, as long as you get what you need’, might be an anthem for our first contractor. Okay, let’s field a complaint that takes us home, or homes, before ‘waiving’ at our neighbor…
Q: Hi Shauna, you helped us last year with transferring our license when we converted from a corporation to a Limited Liability Company (LLC). We are now wanting to convert back to a corporation. We don’t have that much work going on in CA at the moment, and maintaining the LLC bond doesn’t make sense anymore. Can you help with transferring the license back into a corporation?
A: I can assist you with updating the license for sure, however you are going to be required to obtain a new license number. Licenses are not transferable from LLC’s to corporations. Give my office a call if you want to move forward with this.
Q: We recently received a notification of a complaint filed against our license for work we did. The violation cites B&P Code 7159.5 in relation to down payments. We signed a contract with an Home Owners Association (HOA) to do work for several units and requested an eighty percent (80%) down payment. It appears 7159.5 is in reference to home improvement contracts. Because we signed the contract with the HOA, doesn’t that make it not a home improvement contract?
A: It is my understanding that if the HOA contract involves improvements to residential properties, the CSLB will consider it a home improvement contract. Therefore, you can only request either $1000 or 10 percent of the contract amount, whichever is less.
Q: I took over my Dad’s license many years ago and because I had worked for him for so long, I was able to Waive the exams. My Dad just reminded me he has the same licenses in Arizona. Can you help with the same process?
A: The Arizona Registrar of Contractors (AZROC) does not have an option to Waive the exams when you’ve worked for a company for any length of time. They also only allow for a Waiver of the Trade portion of the exam if you took the equivalent Trade exam in the reciprocal state. So if you want to get licensed in AZ, I can definitely help with the process, however you’ll have to take both the Law and Trade exams.
Q: Can we add second “back-up” Qualifier to our CA license? We are thinking of letting our current Qualifier go at the end of the year, but we don’t want to run up against any deadlines in regard to replacing him.
A: Not yet. It is my understanding that the CSLB is considering allowing this option eventually, but it’s currently not in effect yet. You can have your “back-up” person obtain a Sole Proprietor license to get through the testing and fingerprint process. That way, when your current Qualifier leaves or is let go, the individual can jump on the license quickly.
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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