The written law, the interpretation thereof, and last but not least, the order of it all. You already have a full time job, but keeping track of contractor rules can unfortunately be your second one. That’s why this space offers some sanity, direction, encouragement and assistance. Not all problems have a happy ending, however, as an expert in this realm I can suggest options for everyone; attorneys, consumers and contractors…
Q: We connected a little while back about an acquisition I am working on. I am purchasing the assets of another plumbing company, and that business will be owned by my corporation. The business we are buying will then become my corporation’s name with a DBA attached to it, which is the name of the company I’m buying. What is the best way to go about making sure appropriate license(s) are in place by the time we close the acquisition? You had previously mentioned each DBA needs its own separate license, is that right? I won’t own the DBA until closing date, so how do we go about setting this up so that there are no lapses in licensing? Thanks in advance for your help.
A: Nice to hear from you. I would suggest getting the new DBA license application submitted ahead of the closing date. If anything falls through, you can always withdraw the application. But due to the CSLB’s processing times, it’s best to get it submitted ahead of the closing date. The CSLB is currently working on applications received on 5/4 so it’s about three weeks before they get to your application for review and then they request the additional items – bonds, insurance, etc. Let me know if you’d like our assistance with the application process.
Q: Hope you’re doing well. We’ve worked with you in the past regarding our GC license, and I’m reaching out with a question about our current licensing needs in California. We hold a “B” (General Building) license and plan to build several single-family homes in Los Angeles. These are residential projects where we’re building new homes on land owned by the homeowners, in some cases from the ground up, and in others involving major renovations or additions. We understand the “B” license covers new construction, but we want to confirm whether a “B-2” (Residential Remodeling) license would be required for any of these projects, particularly if a project involves more limited or remodel-type work rather than full ground-up construction.
A: Thank you for contacting me again. If you are doing at least two unrelated trades on any one job, your “B” license will cover you. The General Building license “supersedes” the “B-2” so there would be no reason for you to have to obtain the Residential Remodeling in addition to your “B”, even if it’s not ground-up. If you are doing remodeling or renovation work which only involves one particular trade (just painting, just countertops, etc), that is when you would need to consider a specialty license outside of the General Building “B”.