When you are done, you’re done, but going away may take some added steps for a corporate contractor. Another contractor finds that license transfers only go one way in CA…

 

Q: Your company helped me set up my Corporation back in 2003. We haven’t done business in California for years and I need to close up the corporation. I noticed that it’s suspended by FTB (Franchise Tax Board). What is the process to shut it down at this point?

A: Before you can close/surrender your corporation, you will first need to get it back in good standing with the Secretary of State. You will need to contact the Franchise Tax Board to find out the reason for the suspension, however it is likely that your company needs to either file back tax returns, pay taxes owed, or both. Contact my office if you need assistance with this.

We are here in Sacramento and can visit the FTB on your behalf to determine what’s needed and file the appropriate items to lift the Suspension. Once the suspension is lifted, you can file to surrender the corporation.

 

Q: We are an Oregon Limited Liability Company (LLC) and when we originally obtained our California Contractor’s License (in 1995) we had to form a corporation because California didn’t allow LLC’s to have a license. In 2012 when the CSLB started licensing LLC’s, we registered our Oregon LLC in California and transferred our license number over to the LLC. For tax purposes, our CPA has recommended that we convert back to a corporation. I assume we can just transfer the number back to the corporation?

A: Actually, while a corporation (under certain circumstances) can transfer their license number to an LLC, an LLC cannot transfer a license number to a corporation. I believe the statute that allows for a corporation to transfer a license number to an LLC was only established due to the fact that the CSLB didn’t previously license LLC’s. Your corporation will be required to obtain a new license number. Contact our office if you’d like assistance with the process.

 

Q: My son has been working for me for years. He’s not an officer of the company. Is there any way to add him to the license?

A: There are only two capacities in which an individual can be listed on a corporate license: either as an officer, or as the qualifying individual. So, the only way to add him to the license currently would be to replace you as the qualifying individual.

 

Q: I am a general building contractor and I want to add the “C-8” concrete classification to my license. Is there any way that I can get a waiver of the exam based on the fact that I’ve been doing concrete work with my general license for many Years?

A: There are certain circumstances where you can ask for a Waiver of a Specialty Classification based on the current classification that you hold. The CSLB may consider a waiver if you meet the following requirements: a) The qualifier has been listed as a member of the personnel for five of the last seven years immediately preceding the application; b) The qualifier has at least four years of experience within the last 10 (Journeyman level or above) in the classification being applied for; and c) The classification being applied for, as determined by the registrar, is closely related and is a significant component of the classification currently on the license.

Be aware that when requesting a waiver of an additional classification you will likely be required to provide additional documentation, such as detailed project forms showing that your additional classification has been a significant part of your work.

 

Q: I am in the process of completing an application for a Nevada contractor’s license. The application states that we need to provide a financial statement no more than a year old. Our fiscal year end is March 31st so the last audit that we had done was last year. Our next audit will not be complete for another month, which is exactly when the bid date is for the project we are seeking in Nevada. Will the Nevada board accept our last financial statement if we provide a letter from our accountant stating that new one is not complete yet and explaining that March 31st is our fiscal year end? If not, can I at least take the exam ahead of time?

A: No, unfortunately Nevada will not budge on the requirement. You absolutely have to provide a financial statement dated within the last year. They will not approve you to take the exam prior to providing an acceptable financial statement.

 

By Shauna Krause, President, Capitol Services, Inc. www.cutredtape.com