Corporate Surrender, Worker’s Comp Exemption, Pipeline & Plumbing

We ‘leak’ real news! However, this answer also has ‘alternate’ choices for this contractor. Another contractor ‘rocks’ my world. We help an Oregon contractor get ‘out of town’, but it’s not going to be easy to leave California…

Q:  We are a leak detection contractor and we locate and repair leaking components, including valves, pumps, connectors, compressors, and agitators, in order to minimize the emission of fugitive volatile organic compounds and hazardous air pollutants.  We are responsible for maintaining and using the proper equipment and seeing to it that calibration parameters are within the allowable limits.  We are also responsible for monitoring components which fall under applicable monitoring requirements.  I have reviewed the CSLB’s classifications list and nothing seems to fit.  Do you have any suggestions?

A:  My first thought was a “C-61”/”D-64” which is “unclassified”.  The CSLB will give the class a title based on the type of work done, i.e. “C-61”/”D-64” (Leak Detection).  However just to confirm, I discussed it with the Licensing Deputy and they determined you can review the definitions of each and choose either the “C-34” (Pipeline) or, “C-36” (Plumbing) classification. There is a trade exam for either one you choose.

Q:  I’ve recently bought a stone business that also does fabrication and installation of cabinets in California.   I’ve been reading your articles and thank you for all the great information.  I haven’t seen my current question anywhere.  I created my corporation with myself as President, Secretary, and Treasurer, with my original intent to be the only owner. My RMO has a current General “B” license, so I gave him 20% ownership in my company for him to keep his license Active.  My question now lies with Worker’s Compensation insurance.  Does RMO status qualify him to be an Officer according to CA Worker’s Comp law, thus I am exempt from Worker’s Comp?

A:  I appreciate you reading the column and thank you for contacting me. RMO stands for “Responsible Managing Officer”.  As long as your company does not have employees, and only has Officers, you are exempt from Worker Comp.

Q:  We are an Oregon company and we got a CA Contractor’s License several years ago to do a couple of projects.  We no longer do business so we need to shut down the company.  I found out we are Suspended with the Secretary of State and was informed that we needed to file and pay our back taxes, even though we haven’t done business there for several years.  The Franchise Tax Board sent me the filing requirements and they included a Certificate of Revivor form.  Why would we need to submit a Revivor form if our intent is to close down the corporation?

A:  To close a corporation in CA, foreign corporations are required to file a Certificate of Surrender with the Secretary of State.  One of the requirements to surrender is to file and pay all taxes owed.  Also, for the Secretary of State to process the surrender, your corporation must be active and in good standing.  You will need to file the Certificate of Revivor with the Franchise Tax Board for the Secretary of State to lift your “suspended” status and put you back to Active/Good Standing.