By Shauna Krause, President, Capitol Services
As I have shared for years, ‘knowledge is power’ so let’s get powered up! Knowing what, when and how make a difference and are part of the complexity of contractor rules. Changes in entity, name, personnel and much more often need immediate attention because deadlines really matter in the space between active and suspended…
Q: Our Qualifier is going to be retiring in February of 2026. He holds the “A” (General Engineering) license. We don’t currently have a qualified person who can replace him on the license at the moment, however he is open to remaining on the license for a period of time to ensure our license remains in good standing. We do however have an employee who is more than qualified for the General Building (“B”) license. Are we able to add the General Building classification to our license in the interim? Our most important concern is having an active license.
A: You can add the “B” (General Building) classification to your license for sure, there is no conflict there, which could be accomplished before February. As soon as your “A” qualifier retires, you have 90 days to replace him. If you are no longer doing Engineering work, you can let the classification fall off the license.
Q: What is the pass percentage I need to score on my contractor’s license exams?
A: The CSLB doesn’t disclose the specific percentage you need to pass, however most of them require between 68%-72% to pass. They will let you know as soon as you sit down for the exams.
Q: Our electrical Responsible Managing Officer (RMO) is going to be leaving, he just gave us notice today. He has the “C-10” (Electrical) classification as well as the “C-7” (Low Voltage) classification on our license. I understand we have 90 days to replace him, and from working with the CSLB in the past I also am aware these things take some time. Do we need two separate qualifiers to complete this?
A: Not necessarily. You may want to consider letting the “C-7 “low voltage classification go. The “C-10” (Electrical) encompasses the “C-7”. When you have the one the other shouldn’t be necessary.
Q: I am selling my contracting business which is licensed as a corporation. The buyer is planning to form a Limited Liability Company (LLC) to buy the business. We are working with a Business Broker who has told us that the license “transfer” process is as simple as changing the name with the CSLB, however when I called the CSLB, they said that we cannot just do a name change when the Company is changing from a Corp to an LLC. The CSLB also explained that the license is only “transferrable” under certain circumstances. When I relayed all of this to the Broker, he said the CSLB’s explanation didn’t sound right, they are making it too difficult, and changing the name should be satisfactory. That’s when I knew we needed to get you involved! How do we proceed?
A: The CSLB is correct. The Corporate license will either need to be re-issued to the LLC (if the situation meets the requirements) or the LLC will need to obtain a new license. A name change is not satisfactory! The buyer will need to have the LLC registered with the Secretary of State, obtain new bonds for the LLC, and provide proof of insurance. And of course, as always, we can help with the process so feel free to give me a call, or have the buyer call, to discuss!
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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