Going your own way doesn’t always lead to growth, at least not without changes in structure and licensing. A contractor asked to get the company’s licensing ‘ducks in a row’ is discovering not all the birds are alike. I also share that where you are from doesn’t change the basic requirements in becoming licensed in CA…
Q: I have a Sole Proprietorship contractor’s license in California. I have a Limited Liability Company (LLC) set up and I’ve done some work under that company, but I know I need to get the license in the name of the LLC. What do I need to do?
A: You need to apply for a “new” license in the name of the LLC. You will not need to take any exams or do the fingerprinting again, but you will be required to get new bonds and show proof of liability insurance in the name of the LLC. Under certain circumstances you can transfer your Sole Owner license number to the LLC, but you also have the option of obtaining a new number if you want to keep them separate. If you’re not sure, let’s talk!
Q: I just started working for a contracting business and they have tasked me with ensuring their contractor licenses are in compliance at all times. The very first thing I noticed is the company converted from a corporation to an LLC last year but their CA license is still in the corporate name (which is the same business name except for the Inc/LLC ending). Is there a grace period allowed where a company is permitted to work with a corporate license when in fact the entity is an LLC?
A: You must notify the CSLB of any change to your license within 90 days of the change.
Q: My company is interested in obtaining a contractor’s license in California. The company is based in Spain, and potential candidates for the position of “Qualifying Party” reside in Spain, gained their experience working in Spain, and each is of Spanish nationality. We plan to begin the process of obtaining a Visa for the designated candidate. Does this need to be done first prior to applying for the license, or can it be done in parallel with the company’s initial application for licensure?
A: The CSLB requires that every individual listed on the license, which includes Officers, Members, Managers, and the Qualifying party, to have either a US Social Security number, or an ITIN. All individuals will need to have that prior to submitting an application for licensure.