In all the years assisting contractors no one has ever asked us to get it done slowly! I always offer a ‘speedy’ answer because time is still money. A second contractor question begins in the far north, while the last highlights a situation that could end in potential disaster without immediate action…

Q: I need to obtain a CAlicense fairly quickly for a job I’m being requested to do. Is that something that you can help me with? I see exams will be required. If I do not pass on the first attempt, what is the process from there?

A: We can definitely assist you with the entire process and do our best to speed up the normal processing time. We offer you study materials to prepare for the exams, so you should be just fine with passing the first time around. BUT, if for some reason you do not, you are required to wait three weeks to re-test. The CSLB allows you to take the exams as many times as you need to within 18 months.

Q: We are a large Solar Company out of Canada and we have work coming up in California. We don’t self-perform any work but understand we still need to be licensed which requires a “Qualified” individual. We are unsure about who to designate to fulfill this role. We have plenty of what we consider qualified members, but they aren’t physically out in the field doing the work. One of our owners who is willing to sit for the exams did work out in the field for his Father but it was in the 90’s. What are your thoughts on that individual acting as our Responsible Managing Officer (RMO)?

A: The CSLB will only accept experience gained within the last ten years. The requirement is four years of fulltime work experience, with at least one of those years being hands-on “in the field” experience. If you don’t currently have anyone on board, you may need to hire an employee who has the requisite experience as your RMO.

Q: I’m an attorney representing a client who has a Sole Proprietorship Contractor’s License in California. He incorporated in 2021 and has been operating as such since incorporation. My question is does he need to apply and obtain a new Contractor’s license? Or, is it enough that he, as the sole Officer of the Corporation, is actively licensed with his own personal license?

A: Your client needs to apply for a new license if that’s how he is doing business now. Whenever there is a change in business entity, a new license is required and doing business under an entity without its own license faces all the legal risks of an unlicensed contractor, even if one (or more) of the Officers is individually licensed.

Q: I need to associate my “A” (General Engineering) license with another company. After ten years with my current company, I will be acquiring another entity and moving my license to that company. I submitted my Disassociation Notice for the current Company today, knowing it will take the CSLB a few weeks to process it. I would like your assistance with obtaining the license under the new company, and at the same time obtaining a Nevada license with Reciprocity. Please let me know what I need to do.

A: As always, I’m happy to help. Give me a call so we can go over all that is needed/required. Regarding Nevada and Reciprocity, if you already filed a disassociation from the current company, you are not going to qualify for Reciprocity unfortunately. Nevada’s reciprocal agreement requires that you be actively licensed in one of the reciprocal States for the previous four years straight, with no gaps. Filing the Disassociation is going to create a gap. Again, happy to help though so please contact me to discuss further.

Q: Is there a grace period to continue operating as a Corporation with a Contractor’s License when the entity has converted to an LLC?

A: I wouldn’t necessarily refer to it as a “grace period”, but the license does not automatically cancel. The law requires the CSLB to cancel the license 60 days after the Contractors Board discovers your corporation is no longer valid with the Secretary of State. My recommendation is always to notify the CSLB as soon as possible when planning a merger, conversion, or change in entity type!.

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