Disassociation & Partnerships, Reciprocity and Multiple Applications

While the range of experience you bring to the table determines what you might do as a contractor everything starts with getting your first license. Once you have a license in any state you can likely get one elsewhere, as a Nevada contractor hopes to. A corporate partnership learns that when it comes to their license it’s ‘one for all, all for one’…

Q:  I’m going to be applying for my General Building license and I want to also get my electrical and plumbing license so I can act as a subcontractor when I’m first starting out.  Can I apply and take the exams for all three licenses at the same time?  Will I have just one license number or three separate numbers?

A: You can only apply for one classification at a time.  Once the license is issued, you can then apply to add the electrical and plumbing classifications to your license.  Keep in mind that you will be required to show at least four years of full time work experience in each trade that you are applying for.  You can apply for three separate licenses if you wish however it is more common to have all of your classifications on one license.

Capitol Services is familiar with ‘reciprocity’ between states and can help anyone if you’d like assistance with the licensing process in AZ, CA or NV.

Q:  You helped me get my Nevada license years ago and I’d like to be able to do work in California too.  I have had my Nevada license for just over five years so I’m pretty sure I’ll qualify for reciprocity.  But, my concern is that when I applied for my Nevada license I had to provide them with a financial statement and show that I had some financial strength.  Last year wasn’t a good one for me financially so I’m wondering if California has the same requirement.  Will I need to have a CPA prepare a financial statement and show that I have a positive operating balance?

 

A:  The CSLB doesn’t require that you supply them with a financial statement in order to obtain a new license, however B&P Code Section 7067.5 requires that all new businesses applying for a license have an operating capital in excess of $2500.  You will be required to answer a question on the license application stating that your current operating capital exceeds that minimum amount.

 

Q: We currently have a General Partnership license made up of three corporations.  One of the entities was bought out last year and we neglected to inform the CSLB.  We recently received our renewal notice and it requires the signature of an individual from each of the corporate entities.   I looked on the CSLB’s website and was able to find a Disassociation Notice; is this what we fill out in order to remove that partner from that license, or how do we handle the renewal?

A:  Unfortunately it’s not going to be as easy as completing a disassociation notice.  When a General Partner “leaves” the license for any reason, the license is cancelled.  Therefore, you will need to apply for a new contractor’s license reflecting the newly structured entity.  This new Partnership will receive a new license number.  The downside of having a Partnership license is that it’s not as easy to make structural changes with the CSLB without need for a new license.

 

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