While most contractors have a grasp of the laws they work under, some of those rules really require an expert eye. Long-awaited in California, the availability of LLC licensing is not without some remaining rumors and confusion among contractors. Finally, we have to disappoint a NV contractor who thought he might avoid one CA exam…
Q: I read in one of your recent articles that in order to Qualify more than one license the individual must own at least 20% of each entity. Is there a specific B&P code section that states that requirement?
A: Yes, B&P Code section 7068.1 conveys the few circumstances that allow for an individual to Qualify more than one license. These include: 1) There is common ownership of at least 20% of the equity of each individual or firm for which the person acts in a Qualifying capacity; 2) The additional firm is a subsidiary of or a Joint Venture with the first. “Subsidiary” is defined as one firm owning at least 20% of the other firm; or 3) The majority of the Partners, Officers, or Managers are the same.
Q: We are in the process of getting a contractor’s license for our Limited Liability Company (LLC). Our application was rejected and according to the CSLB’s website the reason for the rejection is that the members/managers don’t match. Do you know what that means?
A: As you likely already know, LLC’s are required to register with the Secretary of State and file a Statement of Information listing the Members/Managers/Officers of the company. The personnel that you have listed with the Secretary of State must match exactly with the personnel you have listed on the application and contractor’s license. The CSLB’s rejection is most likely because what you have listed on the license application doesn’t match exactly what you have listed in the Secretary of State’s records.
Q: We have a “C-30” (Installing Equipment to Treat Water) license in Nevada and we need to get licensed in California. I looked through the list of classifications and it appears that I will need to get a “C-55” (Water Conditioning) license in CA. Is there a trade exam for that? I didn’t have to take one in Nevada. If there is a trade exam, will I qualify for reciprocity?
A: Yes, there is a trade exam for the “C-55” classification. With the exception of the “C-61” classifications, all other “C” classifications require a trade exam. Unfortunately the water conditioning classification is not reciprocal so you will be required to take two, both the law and trade exams. Please contact us if you’d like our assistance with the process.