By Shauna Krause, President, Capitol Services, Inc. Email: [email protected]
Let’s play ‘match game’! We’ll take ‘multiple choice’ in answering this contractor. Worker’s compensation insurance is just the first step for those previously ‘exempt’ from the need. Taking work outside CA often requires a little ‘two step’ to cross the ‘gaap’ in taking advantage of reciprocity while getting a NV license application right ‘on the money’…
Q: Does the Officer list with CSLB need to match the Officer’s list the Secretary of State of CA has for the entity? We just recently updated our list with the Secretary of State.
A: It depends. The CSLB has different requirements depending on the type of entity. With regards to Officers listed on a license, foreign corporations (corporation’s formed outside the State of California) are only required to list their President on their Contractor’s License, which should match the President on file with the Secretary of State. Domestic corporations are required to list their President, Secretary, and Treasurer on their license, which also should match what’s on file with the Secretary of State. For Limited Liability Companies (LLC’s), the CSLB requires that all personnel listed with the CA Secretary of State match exactly with the personnel listed on the Contractor’s License.
If your Officers have changed, you have 90 days to notify the CSLB. There is currently no fee for updating Officers with the CSLB.
Q: When I originally got my license I had no employees and I remember filling out a form that stated I was Exempt from Workers Comp. I’ve been getting a lot of work this summer so I hired a couple of employees and added a Worker’s Compensation policy through my insurance company. How do I get the “exempt from Workers Comp” notation taken off my license?
A: You will need to send the CSLB a Certificate of Worker’s Compensation Insurance and they will remove the notation and replace it with your updated insurance information.
Q: We are in the process of applying for a Nevada Contractor’s license. I have a couple of questions about the required Financial Statement and references. Does the Financial Statement need to be on the GAAP basis of accounting, or can cash basis or tax basis be utilized? Secondly, do the financial statements need to be comparative showing 2-years side by side? with regards to the references, does our Qualifier need to get those if he’s applying for Reciprocity?
A: The Financial Statement can be on the GAAP basis, cash basis, or tax basis. Any of those methods are acceptable. Keep in mind that while they are still acceptable, the cash basis and tax basis financial statements don’t always present the best picture for the NV Board.
To ‘step up’ and answer your second question, it is not necessary to show 2- years side by side. Compiled financial statements are required to be dated within the last six months, and reviewed and audited financial statements need to be dated within the last year.
Lastly, references are not required when applying with the Reciprocity agreement. Just FYI, Electrical, Plumbing, and Fire Protection classifications are not included in the Reciprocal agreement. Help is always available for CA, NV and AZ applications and questions when you need it, give us a call or email.