Naming Your Company, Out of State Registration, & Changing an RME

//Naming Your Company, Out of State Registration, & Changing an RME

Naming Your Company, Out of State Registration, & Changing an RME

We begin with a little bit of ‘sole’, move on with no place like ‘home’ and help ease the worry about a ‘responsible’ person hitting the highway…

Q: I recently applied for a Contractor’s license and I used the word “Builders” in my business name. I checked the status online today and it says, “provide a corrected business name” and then has the word “builders” in parentheses. Do you know what this means?

A: I am assuming based on the notification you applied for a Sole Proprietor license. A Sole Proprietor cannot use plurals in their business name, such as “Builders” or “ABC & Sons” or “HVAC Installers”. The CSLB considers the plural as a mis-representation of personnel for a Sole Proprietor license.

Q: We have a fictitious name filed with Kern County. When filing for a new Contractor’s license, should the company name include our fictitious name or just the out-of-state Corporation’s name?

A: The company name should be your registered name as reflected in your Home State. If you are using a ‘dba’ (doing business as) name in CA, that will follow your corporate name (example: ABC Inc. dba XYZ).

Q: If we are an Oklahoma corporation, are we required to have a California address in order to do business there? Basically, I’m wondering if we can list an address outside of CA.

A: You can list an address outside of CA, that will not be an issue. If you are a foreign Corporation, meaning formed in another state, you will be required to have a Registered Agent in CA. We can act in that capacity if needed, contact our office for that or other licensing needs in CA, AZ and NV!

Q: We are a brand-new company and we need a CA Contractor’s license ASAP. We are looking to hire someone who already holds the Qualification. Our only concern is, what happens when he leaves the company? What are the ramifications of a Responsible person leaving the license?

A: If your RME (Responsible Managing Employee) leaves the company, the license remains with the Corporation and you are given 90 days to replace him/her.

Q: I currently have a “B” contractor’s license under my construction company. I just purchased another company and would like to get a “C-61” license. Does having a “B” qualify me to take the Law exam to get the “C-61”? Or do I still need the 4 years? Have any ideas?

A: You can add the “C-61” class to your existing “B” license to handle this Specialty work or you can apply for a new license if you want this separated from your General Building work. There is no need to retake the Law exam and the “C-61”(Limited Specialty) has no trade test; however, you will need to show 4 years of experience in this field to qualify for the license. Unless you have been handling this type of work under your “B” or have — within the past 10 years — handled this work aside from your licensed contracting, I do not know how you will qualify. Maybe the person you purchased the company from will agree to become your Qualifier until you have the requisite experience? That’s at least one option.

Q: I have some work opportunities coming up but need a California contractor’s license. Is it legal to work under my father’s contractor license using my own business name? Since he is the Sole Owner of his business, would he need to get Worker’s Comp Insurance if I use his license? And would I need to buy my own liability insurance or would the work fall under his? Any direction and advice in this regard would be greatly appreciated. Thank you.

A: Sorry, but you cannot use your father’s license number. State law prohibits an individual to loan or give their license to another person. There are generally three options if you want to pursue these “work opportunities”: a) you and your father can apply for a partnership license; b) your father can hire you as an employee (but he would need to sign any contracts and obtain Worker’s Compensation coverage) or c) your father can form a corporation and you could be appointed as an Officer.

While knowledge is power. Get expert assistance immediately when you call 866-443-0657, email [email protected] cutredtape.com, or write us at Capitol Services, Inc., 1225 8th St. Ste. 500, Sacramento, CA 95814.

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

By |2019-01-24T21:09:31+00:00January 16th, 2019|Blog|0 Comments

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