Retrieving a revoked license, what defines a “manager” and selling a vintage license…these and a thousand other questions are answered expertly every day.

Q: My license was revoked for reasons that I won’t get into and since then I’ve been working for another licensed company. I’d like to get my license back, is that possible?

A: It’s possible. You need to re-apply for the license and as long as it’s been under 5 years since the revocation you would not need to re-test. To reinstate your license you would have to show proof that you have fully complied with the terms and conditions of the revocation. In addition, you will likely need to post a Disciplinary Bond in addition to the Contractor’s Bond. If you are applying under the same entity with the same personnel, and the entity is in good standing with the Secretary of State, you can request that the license number be re-issued.

Q: Hi Shauna, I’d like a bit more clarity from you on an item that came up on our call the other day regarding transferring our corporate license to a new LLC. You mentioned that my Partner and I will need to be a “manager” of the new LLC. Can you please explain further, including showing us the precise language in the license law? That term “manager” has multiple meanings and applications, especially within our legal entity structure.

A: To transfer a corporate license number to an LLC the personnel listed on the license for each entity must be the same (B&P Code Section 7075.1c(6)). The Secretary of State (SOS) requires that you list at least one member or manager of the LLC. LLC’s have members and/or managers. Typically, members have ownership, managers do not. LLC’s can elect to have officers as well. Being that a) you want to transfer the license number and therefore the personnel need to stay the same, and b) the Secretary of State requires that you list at least one member or manager, and c) the CSLB requires every individual listed with the SOS to be listed on the license, one or both of you is going to have to be listed as a Manager of the LLC.

Q: I have a low license number which was issued in 70’s and is a Sole Owner license. I was thinking about selling the license number and after doing some research, it looks like as a sole owner, the number can only be re-issued to a family member. Is it accurate that that’s my only option for selling the number? How loose are they with the reference to “family member”? Is a cousin considered a family member? 

A: I’ll give you two options here. If you keep the license as a Sole Owner then your only option for transferring the number is to a family member. How “loose” the CSLB is with that term, I don’t think they are going to test bloodline or anything. You’ll just need to make a request in writing and state your relation to the individual and give permission for the transfer. The statute in relation to these reads “…when the individual is an immediate family member of a licensed individual who is deceased or absent and the license is required to continue an existing family contracting business”.

The second option is if you were to transfer the license to a corporation or LLC and then sell the business. That would allow you to sell it to a third party regardless of the relationship. You can give me a call discuss this option if you are interested.

Q: I just received a letter from the CSLB notifying me my Qualifying Individual disassociated from my license. He didn’t give any notice or anything and when I contacted him, he informed us he had to disassociate in order to be added to another company’s license. I was a bit shocked to say the least! 

My plan is to take over and replace him on the license right away. However, I am in the middle of two jobs and I’m wondering how long you think it will take knowing the CSLB can take a long time to process these things. Can they issue a temporary extension? Do you think I should transfer these job permits over to another contractor I know? Lastly, would this be a good time to transfer my license over to an ‘S’-corporation? Sorry for all the questions, but I’m feeling anxious and overwhelmed with a suspended license! 

A: No need to apologize, I can understand your surprise and sense of uneasiness. The CSLB will only grant extensions if you request them before the 90-day deadline and if you have a current application in process. So unfortunately, you lost that option already. The replacement process will likely take at least four weeks, and possibly more depending on how quickly you schedule the exams. With a suspended license, you cannot legally be doing any contracting work so your idea of transferring your contracts/permits to a licensed contractor is a good option so you don’t find yourself in any trouble.

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