You can’t ‘ignore’ this issue. You can however ‘disassociate’ from this problem! Another contractor learns what happens when you do ignore doing ‘due diligence’ when changes affect your company and licensing… 

Q: We have an Officer who is retiring, and he has been associated with several of our Corporate licenses over the years, some that are now cancelled. Is it necessary to file Disassociation forms for those cancelled licenses? A few of those entities were merged into other corps as far back as the mid-90’s and no longer use the mailing address listed on the CSLB website and, the other Officers have long left the Company. I want to be thorough but also don’t want to create more work or cause confusion

A: It’s not necessary to file Disassociations if the licenses have been cancelled for good. The only licenses he should worry about removing himself from are the ones where (obviously) he is still associated, or the ones which are more recent. Anything that has been expired or cancelled for more than five years you can ignore.

Q: Our license is currently Suspended for lack of Qualifier. Our Responsible Managing Employee (RME) retired in early 2021, notified the CSLB, and our license was then Suspended after the 90 days. We didn’t bother with it because we didn’t have any work in CAbut now, we are looking at a possible opportunity and need to work to get our license back in good standing. For this potential project, assuming we get our license back to Active status, can a wholly owned subsidiary of our corporation work under our license? Or are they required to have their own Contractor’s License? 

A: Being that the Subsidiary is a separate entity, it would be required to hold its own Contractor’s License. One entity cannot “use” or work under another entity’s license, regardless of the relation. It’s always a good idea practice ‘due diligence’ with keeping CSLB up to date on adjustments to entities, status or address changes.

Q: When reading the requirements for an individual to Qualify for multiple Company’s licenses, it seems that assuming the individual is an Responsible Managing Officer (RMO), the limit is three. Does that mean three Company licenses in addition to a Sole Proprietor license, or is the Sole Owner license considered one of the three Company licenses? I’m hoping to be able to Qualify three Company licenses while keeping my Sole Proprietorship active as well.

A:An individual is permitted to be on three Company licenses (assuming he/she meets the requirements outlined in B&P Code Section 7068.1 regarding qualifying multiple licenses) in addition to their Sole Proprietor license. Sound like you are going to be one busy guy! 

Q: We are licensed in the State of Nevada, and we need to get licensed in California. It is our understanding Corporations are required to list all their Officers on the CA license application and each of the individuals listed are required to be fingerprinted. Both my Mom and Dad are listed as Officers on our NV Corporation and we want it to remain that way. Is there any way that I can list myself as all the Officers for the purpose of obtaining the CA license so that my parents do not need to worry about coming to CA to be fingerprinted? Or does CA check our NV records to make sure it all matches?

A: While the CASecretary of State does require that your Corporation be in good standing in your Home State in order to register in CA, they will not check the records with regards to Officers listed in Nevada. Therefore, it is up to you who you list as Officers with the CA Secretary of State. The CSLB will check Officer records with CA SOS and make sure they match, but also will not check Nevada’s records.

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 [email protected].

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