RMO, RME and Corporate Contractors Licensing

You can assume something, or jump to a conclusion. In most cases, you’re going to find that you have ‘leaped before you looked’. I help people look ahead of their leap into contractor’s licensing. For others, who’ve already jumped in, I’ll help smooth the way to better understanding of how and when their license needs attention. From sole proprietors to corporate mega-firms, they all need a license number from the CSLB to do business in California…

Q: I need to obtain a “C-7” Low Voltage License. From reading your column, I know the CSLB does not issue licenses to an LLC. However, since I am the only member, would it be possible to apply for the license as an individual and not through the LLC? If so, how would I complete the first section when it asks for the company information? Is it possible to apply only as an individual?

A: Yes, you are correct in the assumption. Applying as a sole proprietor would appear to be your best course of action. When you refer to completing the “first section”, I assume you mean the business name on the application. This can simply be your name or a fictitious business name (but not the LLC).

Q: Hello. We have a corporate “C-10” license that you helped us with. If our Responsible Managing Officer (RMO) leaves our company, either at his will or after he is terminated, are we able to maintain the license or does he take it with him?

A: The license was issued to your corporation, not your RMO as an individual. Therefore, when he leaves – for any reason – the number stays with your company (i.e. he cannot take it with him). You’ll have 90 days to replace him to avoid a suspension.

Q: First, thanks for taking my question. We have recently formed an “S” Corp. and had one of our employees who had a GC License and made him our Responsible Managing Employee (RME). Are there any requirements to how may hours that he is required to work?

A: Yes, the CSLB does have a requirement for Responsible Managing Employees (RME) regarding the number of hours they must work. You may recall on the license application you filed that one of the questions in Section #5 states “an RME must work at least 32 hours per week or 80% of the total operating hours per week.” This is required under Section 823 of the Board’s Rules and Regulations.

Q: I am interested in having someone in my corporation as an RME. What could I expect to pay per hour, and what is the minimum or maximum hours an RME must work in my corporation?

A: The State Contractors Board does not regulate employee pay or the maximum number of hours he or she may work. However, as indicated in the answer above, the CSLB does regulate the minimum number of hours Responsible Managing Employees must work.