Adding Officers, Military Service Credit & NV Financial Statements

‘Form’ a line if you have been frustrated with government paperwork! That irritation is why business owners discover they need a tax, legal or in this case, contractor’s licensing expert. Don’t panic help is on the way…

Q:  I am currently Responsible Managing Employee (RME) for our corporation and need to change to RMO. My wife is the President, Chief Financial Officer, and SecretaryI am Vice President and Responsible Managing OfficerThis happened 12/21/2016. (When I was made RMO)I sent the form “Application to Add New Officer to a Corporation” on 3/31/2017 to the Contractors State License Board. I just assumed it was done, but I just received the renewal of our license and nothing was changed. It still has me as RME.  I’m very confused.  Do I sign as RME even though that’s not technically correct?  I need to get it changed on the license, what form should I use?

 A:  I understand your frustration the forms can be very confusing.  You actually need to complete an Application to Replace the Qualifying Individual where you are essentially replacing yourself as the RME and becoming the RMO.  Applications to add new Officers are used for individuals who are strictly Officers and not the Qualifier on the license.

With regards to your renewal, I recommend you sign it (your wife will need to sign in addition) even though it shows you as RME.  The renewal requires the signature of the Qualifier, regardless of whether you are an RME or RMO. The CSLB takes several weeks to process renewals so you don’t want to run the risk of there being a lapse in the license.

 Q: I noticed on the application it asks if anyone shown on the application has served in the military.  Does it benefit me at all to mark that I did?

 A:  Yes, the CSLB will grant expedited application processing to applicants who are currently or have previously served in the military.  In order for you to take advantage of this, you mustsubmit a DD214 form confirming your release.

 Q:  I recently Incorporated and I need to apply for a Contractors’ license for the Corporation. I’d like to keep my Sole Owner license Active.  Will I need to have separate Bonds for the Sole Proprietor license and the Corporation?

 A:  Yes, separate Bonds will be required. Bonds are not transferrable and cannot be used for multiple license numbers. 

 Q:  On the Nevada license application it asks for a specific monetary limit on the form. Our jobs vary and we don’t want to have a “specific” limit.  Any advice?

 A: Assuming your financial statement supports it, you can always request an “unlimited” bid limit (which is considered $10 million and above).  Keep in mind your financial statement is required to reflect at least 10% of what you are requesting in working capital, and at least 20% of what you are requesting in net worth.