California, Nevada, Arizona Contractors Licensing/Financial Requirements

No matter how hard I try I just can’t be in two different places at the same time. However, did you know a contractor sometimes can qualify two licenses at the same time? Another contractor wants to work in three places, but found the California application a little ‘weird’ after applying in Arizona and Nevada‚Ķ

Q: I recently purchased a company and the previous owner holds the license in his name. I have over 4 years in this career. Can I replace the qualifier on the license, since I now run this company?

A: Thank you for the email. Under some circumstances — with 4 years experience at a journeyman level or above — you can apply to replace the present qualifier. However, if the company you purchased is a sole owner license “in his name”, then you will need to apply for a new license in your (or your company’s) name. Further, if you bought a corporation as an asset (rather than stock) purchase, you’ll need to apply for a new license and cannot assume the previous owner’s license number.

As indicated, there are many variables when purchasing an existing company. If you would like to further discuss your licensing situation prior to buying a company call me at 866-443-0657.

Q: A quick question: We intend on submitting a license application for our new entity, and would like to name the “old” company qualifier as the RME. Will doing so effectively terminate our current license, or can one qualifier serve in the same capacity for two different entities?

A: Listing the same person as qualifier on two different licenses simultaneously is reviewed by the CSLB on a case-by-case basis. Sometimes they allow this while other times they say no depending on a number of different factors, including what code sections may apply. You can list the “old” qualifier on the new application with the provision that he will only be removed from the current license upon issuance of the new license. In this way, the qualifier will only be on one license at a time.

Q: I just finished my application process for Nevada and Arizona. I’m now looking at obtaining a license in California. It does not appear that reviewed/audited financials are required (or there is even a form) for this information. I find that odd – can you please confirm? Thanks!

A: No financial reports are required for licensure in CA. The only requirement in this regard, is responding YES to a question on the application, which asks, “Does your operating capital exceed $2500″. California has determined that this is the minimum amount a contractor must have to be considered financially solvent. This has been the dollar amount for over 20 years, so an adjustment may be in order. In NV, your bid or project limitations are dependent upon the financial data presented to the Contractors Board (i.e. bank statement and financial statement). If your bid limit will be under $1 million, a compiled statement is fine. The reviewed/audited are needed if the limit is over $1,000,000.

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