CA, NV, AZ Contractor’s Licensing

When the California economy slows contractors begin seeking other opportunities, many times taking a look over state borders. In concert, I get calls regarding getting your license in Nevada, or in this case, Arizona. Everyone can learn from this question. Everybody, one more time, what can’t a Limited Liability Company obtain in California? Let me also introduce another member of our Contractor’s Board…

Q: My company has licenses in CA and NV. We’re looking to get licensed in AZ. Do you know anything about the overall process?

A: I have a very good idea of what paperwork is required by the AZ Registrar of Contractors. First, unlike many states, you take the exam prior to filing an application for licensure. If you have been licensed in CA or NV, 5 of the prior 7 years, AZ should grant a waiver of the trade exam. This is based on a reciprocal agreement among the 3 states.

The application package includes detailing your work background; providing a financial statement, posting a contractor’s bond; and listing your company Transaction Privilege Tax Number (TPT). You can secure the TPT by filing an application with the AZ Dept of Revenue and posting a Taxpayer bond. If applying as a corporation you must also register with the Sec. of States Office in Phoenix.

Q: What do we need to do in order to replace our Responsible Managing Employee (RME)? We hold three classifications and I was wondering if more than one person could become the new qualifier? Would testing be required?

A: You can choose to have more than one person qualify these license classifications. One person must be designated for each trade. If you have three separate individuals apply to replace the RME, the applications can be filed simultaneously. However, EACH qualifier will be required to pass the law (as well as their respective trade) exam. On the other hand, if you have one person qualify all three trades, he or she will only need to pass the law test once, but must take all three trade tests — one at a time.

Q: Can a sole proprietor, with an “A” license, do business in the state of California as an LLC?

A: Sorry, a licensee must conduct business under the type of entity and name style that is licensed by the CSLB. If you are a sole owner, this is how you should be registered with the Board. Regardless, you could not obtain a license as a LLC since the Contractors Board will not issue a license for this type of entity.

Know Your CSLB Members: Robert Lamb

Assembly Speaker Fabian Nunez appointed Robert Lamb to the Contractors Board in May 2006. Mr. Lamb is a certified plumber and pipefitter and has been a member of the United Association for more than 25 years. He was the Business Manager for the Plumbers and Steamfitters UA Local 582 in Santa Ana and was also a representative for the Southern California Pipe Trades District Council 16. Mr. Lamb has held a number of positions in the industry and has worked on a variety of construction projects.

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