To protect yourself you need the right answers, and a warning to beware like you will find here today. You can share a great bond with your family, but your license bond is yours alone. Buying business assets will include the company name, but will it include the contractor’s license? It seems the theme here is change, and sometimes that includes sudden unexpected loss that means the end of the partnership…
Q: I have worked for my father’s contracting company for many years and he passed away recently. I have applied for a new license and I’m requesting that his license number be re-issued to me. The CSLB sent me a letter requesting a contractor’s bond. My Dad just renewed the bond on his license. Can I request that the CSLB also transfer his bond?
A: No, unfortunately bonds are not transferrable. So even though you will be keeping your father’s license number you will need to obtain a new contractor’s bond.
Q: My client currently has a California license (for the purpose of this conversation we’ll call it ABC Inc). If ABC Inc. purchases the assets of another existing licensee and wants to continue operating the existing licensee’s business, but under ABC Inc., could the license be amended to identify more than one dba name, or would they be required to obtain a separate license?
A: In an asset sale you cannot continue to operate under the same license number that the company currently has. When purchasing the assets of a licensed business, your client as the buyer will be transferring the assets to ABC Inc. and from that point can either obtain a new license for ABC Inc. with a dba name attached (which may be the current business name reflected on the seller’s license), or they can form a new entity, purchase the assets, and continue operating the business.
Q: My Partner recently passed away. I have read that a Partnership license is cancelled upon the death or Disassociation of one of the General Partners. I plan to apply for a new license but I know that takes some time. We have quite a bit of work in progress. Is it possible to request that the CSLB hold off on cancelling the license until we finish the work in progress?
A: First of all, I’m sorry for your loss. B&P Code Section 7076 allows for the remaining General Partner or Partners to request a continuance of the license to complete projects in progress and undertake new work for a reasonable amount of time, which will be determined by the CSLB. This request must be made in writing within 90 days of his death.
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.