Corporate Surrender & Taxes, RMO & Revoked Licensing and DOSH Filing

Some things can change, and sometimes remain the same as our first contractor learns. We ‘dash’ the hopes of another contractor who has discovered you can’t work without ‘DOSH’.  What you don’t know can hurt you, as a Nevada contractor gets a tax bill from California he didn’t know was coming…

Q:  We will soon be making some structural changes to our corporation.  It will keep the same EIN number and Secretary of State registration number but we will be changing the name and Officers on our license.  Is there a certain amount of time that we have to report these changes to the CSLB?  Will this require the need for a new license number?

The CSLB allows 90 days to report a name and/or Officer change.  Please note that for the name change you must first register the change with the CA Secretary of State.  As long as your registration number with the Secretary of State remains the same, you do not need to apply for a new license number.

Q:  When a contractor has the ASB (Asbestos) Certification, doesn’t that also require them to have the Division of Occupational Safety and Health, or DOSH, registration in order to perform asbestos abatement?  Is there any restriction if they don’t also have the DOSH?

A:  Yes, if a contractor has the Asbestos Certification they are required to register with DOSH.  They cannot perform asbestos abatement without it.


Q:  My Sole Proprietor license was revoked last year and I was wondering if I may form a corporation with an Responsible Managing Officer (RMO) in order to do business?  I would be the owner and Vice President but he would be President/Secretary/Treasurer/RMO so he would be the only one on the contractor’s license.

A: According to B&P Code 7121.5 an individual who was the Qualifying individual on a revoked license “shall be prohibited from serving as an officer, director, associate, partner, manager, or qualifying individual of a licensee”.  In order to act in any other capacity other than a bona fide non-supervising employee for a contractor, is with the CSLB’s approval and most likely a disciplinary bond.


Q:  We are a Nevada corporation and you helped us get licensed years ago in California.  We did a couple jobs but haven’t worked out there in several years and we let our contractor’s license expire.  I was just made aware that we were still being taxed and I want to cancel our corporate status in CA so that we don’t incur any further taxes.  Are we required to pay back taxes prior to closing the CA corporation?

A:  Yes.  In order to surrender the corporation you must file any delinquent tax returns and file a final/current year tax return.  You should contact your CPA or tax professional for more information or assistance with this process.