Is having a ‘low’ or three-digit license number important? It can speak volumes about longevity in business, something many look for in choosing a contractor. Another contractor helps us sort out some of the confusion about ‘unrelated’ trades on General Building licenses and we share some good news about Nevada licensing …
Q: Our company has had a Contractor’s License in California since the 1930’s. The company is going to be merged out and a new corporation will be formed, however it is very important to us that we don’t lose our license number since it’s a 3-digit number. Is it possible to transfer the license number from one corporation to another or will we have to get a new license number since the corporate entity number will be changing? We plan to keep the same Qualifying Individual.
A: There are certain conditions that will allow for a corporate license number to be reassigned to a different corporate registration number. B&P Code Section 7075.1 outlines the conditions that allow for reassignment but based on your scenario, the only two that may apply is either a) The parent company has merged or created a subsidiary, or b) The subsidiary has merged in to the parent corporation. The CSLB typically defines a “subsidiary” as any firm in which at least 20 percent of the equity is owned by another firm.
Please note that you are required to submit an application for a new contractor’s license along with a written request asking for the license to be reassigned to the new entity. Those decisions are made on a case-by-case basis.
Q: I have a General Building (“B”) license and I was wanting to know if it would be acceptable with the CSLB if I did Responsible Managing Officer (RMO) work for a corporation doing roofing and solar? Some of the jobs are newer houses and do not need new roofs and only need roof flashing installed. Would doing roofing and/or roof flashing along with solar fall into the category of 2 or more unrelated trades?
A: Yes that is acceptable and would be considered 2 or more unrelated trades. In fact, the CSLB has determined that “B” contractors can perform solar work alone and it qualifies as 2 or more unrelated trades.
Q: I recently changed jobs and I was the Qualifier on my previous company’s Nevada license. I disassociated from the license but I wanted to obtain my own personal license and keep it on Inactive status so that in case I want to utilize it in the future I won’t need to re-take the exams. My problem is that my financial statement is going to reflect negative equity. Is there any way to bypass the need for a financial statement if I plan to have my license on inactive status anyway?
A: There is no way to bypass the financial statement requirement even if you don’t plan to have an active license. The good news is that you have five years from the time you disassociate in order to re-apply for the license without having to re-take the exams so you have some time to build up some equity