Business Entity Licensing, Adding Classes to LLC’s and Generals in AZ

The name’s the thing in causing our first contractor to call. A bi-coastal contractor needs ‘expedited’ advice on how to move from current corporate license classes to his LLC, without affecting work in progress. We also share a lesson in Arizona licensing…

Q:  We currently have a contractor’s license for our corporation that operates out of Northern California we’ll call it ABC Roofing Inc.  We opened an operation in Southern California and our accountant formed a separate corporation for payroll purposes, we’ll call this one XYZ Roofing Inc.  Can we just add XYZ Roofing Inc. as a dba to ABC Roofing Inc.’s license?

A:  No, since these are two separate entities, each must have their own license number.  A corporate license number is issued exclusively to a specific corporation registration number.

Q:  We have a California corporation and also a Delaware Limited Liability Company (LLC), both that have licenses.  Our corporate license has an RME (Responsible Managing Employee) with eight different classifications.  We want to operate under just the LLC license and cancel the corporate license.  How do we go about moving our RME from the corporation to the LLC?  We need to keep all classifications active at all times.

A:  The CSLB only allows you to add classifications to your license one at a time, so you would first need to decide the order in which you’d like to add them to the LLC license and then submit the applications one by one.

Because RME’s can only be on one license at a time (except in some rare instances), once you add the first classification to the LLC license, your Qualifier will need to Disassociate from the corporation’s license.   I assume you will not be replacing the RME since you intend on canceling the corporate license, so once he Disassociates you have 90 days to complete the process of adding classifications to the LLC in order to keep them all active at all times.

Each additional classification application will take several weeks to process, and with 8 classifications to add one at a time, it may be difficult to complete the process in 90 days.  The CSLB has an expedite committee that will review your reason for wanting your application(s) processed on a more immediate basis.  The expedite requests are evaluated on a case-by-case basis, but it may be worth attempting in your case.  If you need assistance with this process please feel free to give us a call.

Q:  You’ve helped us in the past with our California license.  My company is licensed in California with the following classifications: General Building (“B”), Electrical (“C-10”), HVAC (“C-20”), Plumbing (“C-36”), and “C-43” (Sheet Metal).  We need to obtain a license in Arizona but I understand that each classification requires a separate application and has a separate license number.  Without being familiar with the laws in Arizona, if we were just to obtain a residential General Building license, can we use that to perform electrical jobs, plumbing jobs, etc?  Or do we need the specialty licenses as we do in California?

A:  While the laws do vary a bit from California, with a “B” (General Residential Contractor) license in Arizona you are not permitted to perform work related to electrical, plumbing, air conditioning systems, boilers, swimming pools, spas and waters well.  All work relating to these trades requires either the specialty license, or it must be subcontracted to an appropriately licensed contractor.