By Shauna Krause, President, Capitol Services
Can you sell a contracting business without giving everything up? Sure, but there are forms! Let’s juggle a license or two, just be careful not to drop anything, while I share some reassurance with another contractor…
Q: We are doing an equity sale of 25% of our business, but before we do that we want to inquire about the need, or lack thereof, to re-license the company with the CSLB? Can you advise? The company is licensed in CA and AZ so if you could kindly advise on both States that would be great.
A: You do not need to re-license the company in CA or AZ upon the sale of 25% of the stock. For AZ, you need to update the ownership with the AZROC. There are forms for that available on their website. For CA, the only time the CSLB requires an ownership update is if the RME/RMO’s ownership changes from more than 10% to less than 10%.
Q: I am the current Responsible Managing Officer (RM) for my company license. I have the “A” (General Engineering) license. I have an employee who has a personal license which carries the “A”, “C-10” (Electrical), and “B” (General Building) classifications. He’s not using his license, it’s currently Inactive.
I would like to utilize his “C-10” and “B” classification on my company license. If I were to just have him be Responsible Managing Employee (RME) for all three categories (“A”, “B”, and “C-10”), could I then use my “A” license somewhere else as RMO? I don’t plan to be removed from my current business though, I am the CEO/President. Also, after five years of the RME qualifying the business, wouldn’t I automatically get the “B” and “C-10” licenses?
A: Yes, that would work for you to add your employee to your license and utilize your “A”(General Engineering) qualification elsewhere. In doing that, you can remain on the license as the CEO/President. After five years of the RME being listed, you do not automatically inherit the “B” and “C-10”. You would need to apply to replace him for those classifications, have someone certify that you performed and supervised the building and electrical work over the five-year period, and you should be able to waive the exams to put those categories in your name as the RMO.
Q: I have a pending application to replace our previous Qualifier on our license. The 90-day deadline is 2/16/26. I’ve been approved and just scheduled my exams with PSI. I have my trade exam on 2/5 and my law exam on 2/6. If I don’t pass the first time, does this give me enough time to re-take the exams?
A: No, definitely not. If you don’t pass the first time, you must wait three weeks to re-take the exam(s). If you didn’t do this already, the CSLB allows for a one-time 90-day extension for replacing your Qualifier. So, I suggest you get a 90-day extension request submitted just in case. Good luck on your exams!
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