RME, Corporate to LLC, Address of Record and Original License Waiver

How to change ‘horses’ in midstream and end up on the same ride. Ditto, this ‘inactive’ answer and a couple more complex contractor issues with expert assistance in discovering where ‘truth’ lies…


Q:  You were originally helping us with transferring one of our Officer’s Sole Owner license number to our newly formed Corporation.  The transaction would have involved issuing 51% ownership to the Qualifying Officer in order to retain his Sole Owner license number.  However, we are changing for the option to issue each of the three Officers 33% interest in the company.  Is the paperwork you sent us still the same, or does it require new/different paperwork?

A:  The paperwork would remain the same.  Either way it’s Original Contractor’s License (Examination Waiver) application.

Q:  We have an employee with an Inactive contractor license and we would like to utilize his qualification to be the RME (Responsible Managing Employee) on our license.  Would he be required to re-activate his license prior to applying for the company license?  We just don’t want to pay the additional fees if it’s not necessary.

A:  No, that is not required.  In fact, RME’s are only allowed to Qualify one Active license at a time, so even if you re-activated it, he would be required to Inactivate it again to be added to the company license.

Q: I was wondering if it is possible to move our current license number to a different company, the new one is an LLC. We want to close down the Corporation, but at the same time, we don’t want to lose our low license number.  Is this possible?

A: Thank you for contacting Capitol Services.  A corporation can transfer its license number to a newly formed LLC undercertaincircumstances:  1)  The existing Corporate license is in good standing immediately before it’s cancellation in connection with the new LLC; 2)  The LLC was formed by a Corporation to continue the business of the corporation; and3) The personnel listed for each entity are the same.

If you don’t meet all of these requirements, then the LLC will be issued a new license number.  

Q:  Our license is set to expire at the end of May.  I am trying to be proactive because we have had some issues in the past with getting it on time, but the license still going suspended for a period of time because of the CSLB’s processing time.  Do you have any suggestions?

A: First, I would make sure the address the CSLB has on record is current.  You can look up your license online to verify.  The CSLB will send you the renewal notice to the address of record about 60 days priorto your expiration.  Truthfully, they take several weeks to process them once you submit, so you’ll want to keep that in mind and get it submitted well before the expiration date. Be sure that you have all the correct signatures and fees to avoid rejection.  Let me know if we can be of any assistance here in Sacramento.