Worker Comp & LLC Licensing, LLC’s in Public Bids and Education Credit

With social media, instant pictures and 140 character messaging it’s nice to know when your name comes up in actual conversation! Don’t be ‘alarmed’ but you may need a contractor license for ‘security’.  What license ‘works’ for public bids by a Limited Liability Company?..


Q:  In talking with a contractor friend, your name was recommended when we were discussing obtaining a specialty license.  I’d like to know if there is a procedure you may provide that takes into consideration education and related experience since I don’t have four years of field experience?

A:  Thank you for contacting Capitol Services.  While you must have at least one year of practical experience, the CSLB does consider education credit toward the four years of required work experience.  The amount of time they credit you depends on your education level, your field of study and the specific trade you’re applying for.  For example, the CSLB would likely give you two years credit if you have a four-year college degree in the field of accounting, business, economics, mathematics, physics, or area related to your intended trade.

 Q:  We are considering converting our corporation’s contractor license to a Limited Liability Company (LLC).  Currently we are exempt from Worker’s Comp insurance because we have no employees, only Officers.  Does the same hold true for LLC’s if we are all members or managing members of the LLC?

A:  If the LLC does not have employees and the only personnel consist of members or managers, it is our understanding that you can file the exemption from Worker’s Compensation.

As you may already be aware, LLC’s are still required to provide an insurance certificate. They must show Proof of Liability Insurance with the cumulative limit of $1 million for licensees with five or fewer persons listed as members of the personnel of record, and an additional $100,000 for each additional member (not to exceed $5 million total).

Q:  We are trying to start a contracting business and we’d like to form an LLC for this purpose.  We have just been told that if we do business as an LLC we will not be able to bid on or participate in any Public Works projects.  Is this true?

 A: It is our understanding that a LLC, just as any other type of legal entity, can bid on public works projects.

The CSLB has limited jurisdiction over who can bid on public works projects so the local government in question ultimately has the final opinion as to who can submit a bid.

As you probably know, prior to January 2012, the CSLB would not issue contractor licenses to LLC’s so it’s possible that the individual who told you this is unaware of the new law that allows LLC’s to obtain a contractor’s license. Call Capitol Services if you need further assistance in your application.

Q:  I currently have an alarm license but not a contractor’s license.  I was recently talking with a “C-7” (Low Voltage) contractor who does the same type of work.  Am I required to have that same type of license from the CSLB?

A: In most cases ‘security’ alarm operators who are licensed by the Bureau of Security and Investigative Services are not required to also hold a contractors license.  However, please note that if you are installing or servicing fire alarms then you are required to obtain a license with the CSLB.