LLC Bonds, Corp to LLC Transfer and Certified License History

While a contractor can build almost anything time machines remain fiction and you don’t have a ‘license’ to go back to ‘when’ you used to be. Anyone can claim almost anything in our social media world, but the ‘truth’ is out there on file at CSLB for contractors who want to learn it…

Q:  We are an Oregon Limited Liability Company (LLC) and when we originally obtained our California Contractor’s License (in 1995) we had to form a corporation because California didn’t allow LLC’s to have a license.  In 2012 when the CSLB started licensing LLC’s, we registered our Oregon LLC in California and transferred our license number over to the LLC.  For tax purposes, our CPA has recommended that we convert back to a corporation.  I assume we can just transfer the number back to the corporation?


A:  Actually, while a corporation (under certain circumstances) can transfer their license number to an LLC, an LLC cannot transfer a license number to a corporation.  I believe the statute that allows for a corporation to transfer a license number to an LLC was only established due to the fact that the CSLB didn’t previously license LLC’s.  Your corporation will be required to obtain a new license number.  Contact our office if you’d like assistance with the process.

Q:  We have a competitor that is “claiming” that our license was suspended for a period of time when we were working.  We have been in good standing since inception, and I’m wondering if there is anything we can get from the CSLB to prove this.  Is there anything we can get from them, some kind of certification stating that we are, and always have been, in good standing with the Contractor’s State License Board?

A:  You can request a Certified License History from the CSLB that will show your current status, classification, issuance date, expiration date, personnel listed on the license, and all history including suspension dates and the reason(s) for suspension.  Contact us if you’d like us to order a license history for you, or any of our contractor readers who might like to have one for your own files.

Q:  We recently applied for a Contractor’s License for our LLC.  The CSLB is requesting a “$100,000 LLC/Worker Bond”.  Our bonding company is requesting all kinds of financial information in order to obtain this Bond.  Is there any way around this requirement?  And if not, what is this Bond for?

A:  There is no way around this, all LLC’s are required to have a $100,000 surety bond (in addition to the $15,000 contractor bond).  According to B&P Code Section 7071.6.5, the $100,00 LLC/Worker bond is for the benefit of employees or workers who are damaged by the LLC’s failure to pay wages, interest on wages, or fringe benefits, as well as other contributions.