NV Financials & Joint Ventures, CA Electrical and Contracting Without a License

I have helped contractors in almost every state, but most often work with CA, AZ and NV. So, we begin and end this time with Silver State inquiries. In between, I also sandwich in two ‘slices’ from our Golden one!…

Q:  Can we form a Joint Venture in Nevada with another contractor if we have a “B-2” (Residential and Small Commercial) and the other contractor has a “B” (General Building) license, or do both contractors need to have the same classification?

A:  No, both contractors do not need to have the same classification to form a Joint Venture in Nevada.

Q:  We currently have a “C-10” (Electrical) Contractors license in CA.  We had some issues with our license come up recently, and in speaking with our attorney he informed us that we shouldn’t be doing trenching with our “C-10” license.  I am surprised by this as we have always done trenching when doing our electrical projects.

A: “C-10” (Electrical) contractors can perform incidental trenching for the placement of conduit and wiring on their projects.

Q:  I recently purchased a painting franchise and I applied for a contractor’s license but haven’t completed the application process yet.  What will happen if I contract without a license?  Is there some sort of temporary license I can be issued while the application is being reviewed?

A:  No matter how you ‘slice’ it, the CSLB does not issue temporary licenses.  As you may already be aware, it is illegal for an unlicensed contractor to contract for work over $500 for labor and materials.  The CSLB has an investigative team that frequently conducts stings and sweeps to apprehend unlicensed contractors and it can result in a misdemeanor, jail time, and fines.  Repeat offenders can face even harsher penalties.

Additionally, contractors performing work without a license have no legal right to enforce contracts, so consumers are not legally required to pay contractors operating illegally. To slang it’s, no license, no ‘dough’.

Q:  I am currently working on getting an application together for our company to obtain a Contractor’s license in Nevada.  Our financial statement includes several of our subsidiaries.  Will each of our subsidiary companies need to complete indemnification paperwork?

A:  No, the subsidiaries do not need to indemnify.  If the companies were “Affiliates” as opposed to subsidiaries, then the Nevada Board would require indemnification paperwork.