Reciprocity Rules, RME & Partnership Qualifying, Handy Limits and LLC Transfers

When changing your company structure some choices are ‘limited.’ A ‘handy’ answer next with some ‘inactive’ answers to follow including a cool ‘detour’ for an AZ question…

Q:  We have a corporate license and are in the process of transferring the license to an LLC.  Our corporate license expires at the end of the month, and according to the CSLB’s backlog, it appears the expiration will occur before the new LLC application will be processed.  We aren’t currently doing any work in California, but I just want to make sure it will not cause any problems if we let the corporate license expire.

A:  It depends.  If your intention is to transfer the corporate license number to the LLC (assuming you meet the other requirements to make this happen), the corporate license must be in good standing.  If you intend on getting a new license number for the LLC, the fact your corporate license is expired is not a concern.

Q:  Can you please give me the code that says that if a business does more than $500 work of business per contract that a state contractor’s license is required?

A:  B&P Code Section 7027.2 states “a person who is not licensed pursuant to this chapter may advertise for construction work or a work of improvement covered by this chapter only if the aggregate contract price for labor, material, and all other items on a project or undertaking is less than five hundred dollars, and he or she states in the advertisement that he or she is not licensed under this chapter.”

Q:  I am currently looking to form a new business. It requires a Qualifier in order to obtain my license. This Qualifying Individual currently has an existing Partnership license Active. Does he have to Inactivate his current license to apply to be RME (Responsible Managing Employee) for my new business?

A:  Yes, he would need to either Inactivate his current license or Disassociate from the license.  Except in rare circumstances, an RME can only qualify one Active license at a time.


Q:  I currently have my Arizona “C-39” which covers all aspects of HVAC. I want to get my California license as well. Would I need to take both exams or only Business and Law?

A:  California has a Reciprocal agreement with Arizona, Nevada, and Utah for most classifications.  If you can document that you took the HVAC exam in Arizona and you have been Actively licensed in Arizona for five out of the last seven years, you will only be required to take the law exam.

Q:  My company currently has an Active license and the Qualifier will be retiring soon.  I have my own personal license, which is Active, and they have requested to use me as the new RME.  Will their company name be listed on my license?

A: No, the company name will not be listed on your license, your license can remain in place with your business name.  However, acting as your company’s RME will require that you Inactivate your personal license.  Please contact our office if you would like assistance with the process.