By Shauna Krause, President, Capitol Services
Always something new here! Let’s get down on HOA’s, then help an Ohio LLC push the ‘ball’ across the line. While I have assisted thousands of individual contractors I also take pleasure in helping families in the business get their house in order…
Q: I know there is a the law about down payments for home improvement projects being 10% or $1000, whichever is less, but does this law apply to projects entered into with a Home Owners Association (HOA)?
A: If the project is on common grounds, such as the clubhouse, fitness center, etc., the down payment laws do not apply.
Q: Back when we started the application process for our Ohio Limited Liability Company (LLC) to get licensed in California and Arizona, you had suggested I test for the CA license first and the passing results would allow for a Waiver of the AZ Trade exam. I passed the CA Trade exam yesterday. I still have to take the Law exam. The Officers of the LLC sent in their hard copy fingerprint cards and the CSLB should have received them today. Can we get started with the AZ license now that I have passed the exam in CA?
A: Not quite yet. You will not be granted a Waiver of the AZ trade exam until you officially have the CA license. The AZROC checks with the CSLB to verify you passed the exam, but they can’t do that without a license number to check on. The hard copy fingerprints can take a few months to clear, but we can get started with AZ once they clear and you have passed the Law exam.
Q: We have a family contracting business in CA that is licensed in the name of a corporation. My father is the license holder, and my mom and I are listed on the license as Officers. My parents are the majority shareholders, however they are older and aren’t involved in the business much anymore. I want to set the license up so that if/when something happens to them, the license is in order. I don’t want to remove them as owners and Officers, but I’d like to take over as the license holder. I called the CSLB and they told me I would need to own 51% of the business to become the Responsible Managing Officer (RMO). I’ve done some research and I’m not finding such information anywhere. I found your website which is very informative and thought you may be able to provide me with some clarity. Just fyi, while I don’t currently own 51% of the company, the corporation is part of my parent’s Trust, which I am the Sole Beneficiary of if that matters.
A: Thank you for contacting me. You do not need to own 51% of the company to become the RMO on the license. In fact, you don’t need to have any ownership at all to be the RMO. You are required to have someone sign off to certify you have at least four years of full-time experience performing and supervising the trade duties in relation to the classification(s) the license holds. Because you have been an Officer on the license for over five years, you can request a Waiver of the exams. You can leave your parents on the license as Officers as well. Contact my office if you’d like assistance with the process!
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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