Name Changes and CSLB on Unlicensed Activity

This will ‘STING’ for some and be a honey of a good deal for others. Everyone benefits from these efforts to protect consumers and level the playing field for our licensed contractors. In another question from the field, the names have been changed to protect the innocent…

Q:  You helped us obtain the attached corporate license.  If XYZ Energy LLC were to change its name (no merger or dissolution or change of ownership, just a simple name change), what is the process for transferring that license to the new business name? Would we have to leave the license in the old business name until the existing contracts are completed?

A:  You wouldn’t really be “transferring” the license.  It would remain in place, and you would need to change your business name with the Secretary of State (SOS) first, and then once completed, file the name change with the CSLB.  

You should file the name change as soon as the change is made at the SOS level.  The projects you have in process should still be able to resume because you were ‘in compliance’ when they were started/signed.  I wouldn’t sign any new contracts with the new business name until the CSLB has approved the name change.

In these times of disaster in our forests an influx of fire repairs and restoration needs for consumers and commercial property is underway in recovery. As contractors, don’t forget to make sure you are properly Licensed, and below you’ll see the possible ramifications of contracting un-licensed.  It’s also a very important reminder for consumers to be sure they are hiring legitimate, properly licensed contractors.

Recent CSLB ‘stings’ by Board SWIFT agents and local law enforcement have captured dozens of criminals victimizing consumers. In Fresno, Santa Cruz and this week in a Sacramento area suburb, Elk Grove. According to the Board release, Sacramento County undercover agents caught more than a dozen criminals ‘posers’. 

CSLB says “Construction is thriving in Sacramento County and unlicensed contracting is a real threat to consumer safety. A recent Contractors State License Board (CSLB) sting in the city of Elk Grove found unlicensed activity that included a contractor who provided a $60,000 bid for a kitchen remodeling project. By law, a contractor’s license is required in California for construction jobs over $500.  

“Consumers need to protect themselves by hiring a licensed contractor, especially when taking on a project like a remodel that may costs tens of thousands of dollars,” says CSLB Registrar David Fogt. “Just because someone is asking for a lot of money doesn’t mean they have the skills or ability to satisfactorily perform the work.”

CSLB’s Statewide Investigative Fraud Team (SWIFT) members posed as residential homeowners and contacted suspected unlicensed contractors through their advertisements to perform concrete, flooring, landscaping, remodeling and painting work. 

Fifteen people were issued Notice to Appear in criminal court citations for unlicensed contracting violations.Three of the unlicensed persons were also cited for requiring excessive down payments.

CSLB-licensed contractors have met experience and testing requirements, carry a license bond, passed a criminal background check and carry Workers’ Compensation Insurance for employees.