Corporate License Transfers, Disassociation, Bonds & Adding to Inactive Licenses

Like holidays we get good feelings about and enjoy coming back on the calendar, it’s always a pleasure to hear from a contractor we’ve helped before. Especially when we can offer good news in response to the question. Another contractor wants to “C” about adding some class to his Inactive number, but first we dispel a mistaken notion about ‘handyman licensing’…

Q:  My license is currently suspended because my Bond expired.  I attempted to renew it but the bonding company wants close to $1000 to renew it for one more year!  I have no complaints or claims filed on my bond so I don’t understand why the premium is so high.  Can I get just a Handyman license since most of my projects have been small lately?

A:  Just FYI,  even when there are no claims/judgments against the bond, the cost of the bond is determined based on your credit.  I have to tell you there is no such thing as a Handyman license.  You mentioned that most of your projects are small; if they are under $500 (including time and materials) you can do them without a Contractor’s License.


You may also consider shopping around for a Bond.  Perhaps you might find one less expensive or even one that allows you to make payments.

 Q:  Last year you helped us with the license holder move between two of our Qualifying individuals. Our license dates show a gap between March 15, 2013 and April 11, 2013 and one of our Prime Contractors is, we believe mistakenly, denying payment of work performed during this period. I do not recall a gap during the transition. Can you help me understand the license rules when you have a Disassociation and Reinstatement? Please advise.

A: Once a Qualifier disassociates from a license, you have 90 days to replace them. The license still remains Active and in good standing during that 90 day period. So unless there were other circumstances associated with the license you have not shared, it’s not an issue to have no Qualifying individual for that month of time. The license stands.


Q:  I want to add some of the “C” classifications to my license but it’s currently Inactive. Do I need to re-activate the license first before I can add the classifications?


A:  No, as long as the status of license is “Inactive” and not “Expired” you can add classifications to the license. Let us know if we can help speed up the process.

Q:  I had called your company a few months ago regarding my GC license that is expired.  I am ready to get my license back now but it’s currently under my former corporation.  I formed a new corporation and I want to reassign this license to my newly registered California entity.  What is the process to accomplish this?

A:  A license number cannot be transferred from one corporation to another.  You will be required to obtain a new license number.  Assuming it has not been over 5 years since your previous license expired, no exams would be required.