Phone Fraud, NV Licensing and Adding Classifications to an LLC

This first inquiry will take more than a ‘New York minute’ to answer! Maybe two? Another contractor needs a ‘guide’ on the best route to work in NV with his CA license. In the end, reading this can save you $500 you don’t need to spend…

Q:  First, I will start by telling you we are based in New York. I have been put in charge of making sure all of our contractor licenses are in order, and I am completely unfamiliar with the licensing procedures/requirements in CA, but it all seems much more complex than other States.  Which is why I’m contacting you!

Our Limited Liability Company (LLC) has a “B” license in CA.  The LLC has several subsidiaries that we also would like to get licensed and add sub-categories (“C-8”,” C-9”, etc). I tried to find information on the CSLB’s website but I was only able to get so far with my inquiries.  I was able to find, in several places on their website, that a Qualifying Individual can only be on up to three licenses at a time, however I also saw in one spot on their website that an Responsible Managing Employee (RME) can only be on up to twolicenses.  So, my first question is, is it two or three?

Secondly, I spoke with a Contracting Company we work with all the time, who holds many licenses in CA (they are the ones who referred me to you), and they were telling me that even though a Qualifier can be on more than one license, you can only move them around so many times in one year.  Can you give me more information on that as I’m sure the issue will come up considering all the entities we will need to get licensed.  

A:  To answer your first question, a Responsible Managing Officer (RMO) can be on up to three Active licenses at a time under certain circumstances outlined in B&P Code Section 7068.1.  An RME, on the other hand, is only permitted to be on up to two licenses at the same time under limited circumstances, also outlined in 7068.1.  Feel free to give me a call to discuss if that’s easier for you.

Q:  As you know, you’ve helped me over the years with licensing assistance in California and Nevada. I own a company in Sacramento that wants to contract on the Nevada side. How do I use my Nevada license for the Sacramento Company? Is this just a paperwork thing? 

A:  You would need to obtain a separate Nevada license for the Sacramento-based company.  You can use your qualification to act as the Qualifying Individual, and then yes, the rest would be a “paperwork thing”.  If you remember, Nevada requires financial information for the applying entity in order to obtain a license.  Let me if you want our assistance with the process.

FRAUD ALERT: The CSLB released a bulletin warning Contractors of a phone scam targeting licensees.  In the scheme, an individual falsely identifying themselves as an employee of the CSLB demands a license “activation” fee of up to $500 be paid immediately over the phone or the license will be cancelled.  The CSLB never calls licensees asking for credit cards or other confidential information.  If you receive any such call, take down the caller’s information and contact the CSLB.