By Shauna Krause, President, Capitol Services
No question is too hard, and the only bad ones are those that go unasked! Honestly, nobody learns anything. Let’s look into the rumor ‘cupboard’ for one contractor, sort a Qualifier question, help jump-start another’s ambitions and banish confusion for all…
Q: I am the Responsible Managing Officer (RMO) on my company’s license. I am wondering if I can get a separate license under a different company, list my brother on it as an Officer, and allow him to use the license with me supervising the projects and such?
A: That would only work if you own at least 20% of your company’s license and the new company you and your brother start.
Q: I have a quick question. Does a cabinet supplier who only sells cabinets (no install) need a contractor’s license? All they would be doing is taking field measurements to make sure their product has the correct dimensions. This question came up during a meeting today and someone claimed they heard a license from the CSLB is required.
A: A contractor’s license is not required for a supplier. It’s only if/when they are signing contracts for the installation that a contractor’s license would be required.
Q: I’m thinking about venturing away from the current contracting company I work for and starting my own business. What are the requirements and costs involved in doing this? What should I do to prepare for the exams? Are there any continuing education requirements?
A: The CSLB requires that you have at least four years of experience performing and supervising the trade work that you are applying for. The cost of the license depends on what type of entity you are wanting to license, corporation/LLC/Sole Proprietorship. You can contact me and we can go over the costs based on what you decide. Lastly, once you are a licensed contractor in California, there are no continuing education requirements but you are required to renew your license every two years and maintain your bond(s) and insurance if required.
Q: I have a Sole Proprietorship license. My new partner and I formed a Limited Liability Company (LLC) that we would like to put my license under. This is going to sound confusing but we set up the LLC so that it is owned 50/50 by each of our own LLC’s, which we each own 100% of. Is it possible to have my LLC be listed as the Responsible Managing Member on the new license? I’m just wondering if there is any way to have the new license not associated with an individual.
A: No, a company cannot be the Qualifying Individual. The RMO/RME/RMM/RMG is required to be an individual. But you can still list your two LLC’s as Members on the license.
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