NASCLA NV Waiver, Business Names and Application Assistance

Shining like a ‘national’ guitar, whether licensed by state or nation the ‘song remains the same’ for our first contractor.  With certain ‘reservations’ for making the change, and new business name can be put on ‘hold’ in CA. I did it once and for you, or our last contractor, I can always do it again!..

Q:  I am applying for a General Building license in Nevada.  I have taken and passed the NASCLA exam, and from what I understand, that will allow me to waive the trade exam in Nevada.  I see the form “Request for Verification of Licensure”, however it appears this needs to be completed by another State.  As you probably know, NASCLA is a National exam which is not State specific.  How do I notify the Nevada Contractor’s Board that I am applying for reciprocity based on my NASCLA test?

A:  You may verify your passing score by accessing NASCLA’s National Examination Database (NED) to purchase and electronically send your transcript to the Nevada Contractor’s Board.

Q:  I just recently took over my brother’s construction company because he retired.  I became the only Officer and the RMO (Responsible Managing Officer).  I want to change the name of the corporation however I don’t want to do it right away.  I was thinking I should keep the same business name for a period of time because it is an established name that most of our customers are familiar with.  In a couple months, when our customers are more familiar with me being the owner, I want to change the name.  How do I go about doing this?  I have a name in mind, and I’d like to “lock it down” so it doesn’t get taken in the meantime.  Is that possible?

A:  The California Secretary of State allows you to reserve a business name for a period for 60 days (assuming the business name is available).  Once you are ready to change the name, you will need to file a Certificate of Amendment of Articles of Incorporation to change the business name at the Secretary of State level.  Once that’s complete, you can notify the CSLB with a Business/Address change form.

Q:  You recently helped me with obtaining my Sole Proprietor license, which went very smoothly so thank you!  About a week ago I submitted an application to become the RME (Responsible Managing Employee) for my company.  Someone from the office called the CSLB to check the status of the application and apparently there were some comments about some deficiencies on the paperwork such as missing middle names, etc.  The CSLB informed us that a letter went out explaining the corrections that need to be made.  When we receive that letter, is this something you can assist with it to ensure there is no further delay in the process?  I remember when you helped me, you were able to hand deliver everything to the CSLB…is that still the case?  Time is of the essence so any expediting services would be greatly appreciated.

A: Yes, we would be happy to assist you, and yes, we still always hand deliver all documents to the CSLB and get date stamped copies. Also a reason we are a first choice in assisting contractors for more than 30 years! 

A Cautionary Tale on Licensing and Ownership for Contractors

It’s a rude awakening to discover but this contractor has twenty thousand reasons to be upset about the drama, and ‘suspense’ his partner created. Solving this tragic turn of events won’t be one ‘act’. As we all learn from his story, like liberty, the ‘price’ of good partners is eternal vigilance, or keeping eyes wide open…

Q:  I went into a contracting business with my partner years ago.  He is the RMO (Responsible Managing Officer) of the company and I am the President.  I have basically been running the business since its inception.  I recently framed out an entire commercial building and the project owner still owes me more than $20,000.  

I went to collect my money when the project was finished, and the project owner is claiming that my license is not valid (Active) so he is not going to pay me.  I looked up my license online and unbeknownst to me, the license is Suspended. I called my partner and he informed me that towards the end of last year, he changed the company from a Corporation to an LLC, obtained a new license and removed himself from our license. Talk about poor communication, I had no idea he did this!  

However, I’m confused because I had my wife call the CSLB, and they told her that my partner is in fact still listed on the license as the Responsible Managing Officer (RMO).  He is on both the corporation’s license andthe LLC license was what she was told.  The person she spoke with said that my license is Suspended because of a Franchise Tax Board (FTB) issue.  I’m obviously somewhat in the dark with the licensing matters and I just need some help to straighten this out.  To make my long story short, I want to get paid!

A:  Wow! After researching both licenses, it seems as if all parties are a bit confused!  Your business partner does in fact currently Qualify both licenses. The LLC license is current and Active (although that doesn’t help your situation).  The Corporate license is Suspended, however it’s not because of a Franchise Tax Board issue.  It is suspended because the Bond and the Worker’s Comp policy are both expired. There is a notation on the license stating that the Secretary of State status must be returned to “active” upon renewalof the license, but the license doesn’t expire until June 30th.  In order to get the Secretary of State back to active, you must satisfy the Franchise Tax Board, which typically means taxes weren’t filed, or they weren’t paid. But that’s not the issue currentlyholding up the license.

Business and Professions code 7031 states that an owner can withhold money if the contractor was not properly licensed at all times during the performance of the contract.

It sounds to me that your best course of action to collect your money is to contact your insurance company and ask that they re-instate the Bond and Worker’s Comp insurance, andthat they back date it retroactive to when they expired. That would be the only way to not show any gap in the license.  Good luck! 

Qualifiers, DBA, “C-1” NV and General Experience

We begin at ‘zero’ with our first contractor Q/A. Another contractor adds ‘one’ to our active look at licensing law.  I will ‘second’ the motion suggested for a NV question, while our last inquiry needs ‘three’ trades to be successful, ‘generally’…

Q:  I am an attorney and my client is purchasing a construction business.  He has never been licensed and doesn’t quite have the requisite experience, so the seller is going to be the Qualifier on the new license.  It will be a Limited Liability Company (LLC).  Is there a requirement for the seller to have ownership in the company?

A:  No, it is not a requirement for the seller to have ownership in the LLC.  With zero percent ownership, the seller can only Qualify one activelicense at a time.

Q:  What do I need to do to add a ‘dba’ or Doing Business As, to my license?

A:  You need to complete and submit a Name Change application.  Additionally, the CSLB just recently started to require that when a Contractor will be using a dba, they must show proof of the dba registration with the County.

Q:  A long time ago (2009-10) you assisted us with some license applications in California and Nevada.  We currently have a “C-1” license in Nevada (Plumbing and Heating).  We want to start a fire sprinkler division in Nevada.  I did some research on the Nevada State Contractors Board Web site, and found the following: “The fabrication and installation of all systems of sprinklers for protection from fire, including the appurtenance, is a sub-classification (“C-1b”) of the “C-1” Plumbing and heating contracting license,” and“The Board will grant to qualified applicants a license in the specialty of plumbing and heating contracting. The Board designates such a license as a “classification “C-1” license. A person who holds a classification C-1 license may perform any of the work authorized for the sub-classifications of the classification “C-1” license.” 

This sounds like we are already authorized to do fire sprinkler work in Nevada under our “C-1” license, but I need verification of that.

A:  You are correct!  The C-1 allows you to perform any and all of the sub-classifications, which includes Boilers (C-1a), Fire Sprinklers (C-1b), Insulation of Pipes and Ducts (C-1c), Plumbing (C-1d), Sheet Metal (C-1e), Heating, Cooling and Circulating Air (C-1f), Pipes and Vents for Gas (C-1g), Water Heaters (C-1h), Chilled-Water Piping (C-1i), Systems to Replenish Breathing Air for Firefighters (C-1j), and Industrial Piping C-1k).

Q:  I currently have a Fencing license.  I would like to obtain a General Building license.  What are your thoughts on the difficulty of adding a “B” classification to my license?

A:  You will likely have to provide the CSLB with further documentation (beyond the standard Certification of Work Experience page) showing that you were performing “B” work with a fencing license.  Remember it has to be four years of full-time work doing General Building work (which must include framing and at least two unrelated trades).