SBE News

Capitol Connection #1030

We ‘partner’ with contractors on questions and answers here. We find an ‘affiliate’ relationship to guide a license applicant in Nevada and recall former First Lady Nancy Reagan in having to ‘just say no’ to another contractor…

Shauna Krause, writer of Capitol ConnectionQ:  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.

Q:  We currently have two LP (Limited Partnership) licenses that we want to transfer to Member managed LLC’s.  The “Partners” (which will now become Members) will remain the same.  I see on the paperwork they mention transferring a corporate license to an LLC, but there is no mention of an LP transferring a license number.  Is this going to be doable?

A:  No, a Limited Partnership license is not transferrable.  You will be required to obtain new license numbers for the newly formed LLC’s.

Q:  Due to a past judgment, the CSLB is requiring that I obtain a Disciplinary Bond for my new Contractor’s License.  Will the Disciplinary Bond show up on my license for the public and my customers to see?

A:  Yes, all Bond information, including Disciplinary ones, are reflected on your license and available for the public to see when they look your license up online.

Q:  I currently have a “C-7” contractors licensed issued to me individually and I am operating a Sole Proprietorship in CA with a ‘dba’ name.  I am interested in forming a ‘S’ Corporation for my business.  What are the costs and requirements?  Will I be able to keep my license number?

A:  First, you will be required to file Articles of Incorporation with the California Secretary of State (SOS).  The fee to register with the SOS is $115.00.  You will then need to apply with the CSLB for a new license.  The CSLB fee for a new license is currently $480 and goes up to $530 after July 1, 2017.  If you own at least 51% of the Corporation, you have the option to transfer your Sole Owner license number to the corporation.   Keep in mind that if you transfer the license number to the corporation, you can never get it back as a Sole Proprietor in the future. Also, I am not a tax or legal advisor and suggest you get expert guidance there as well. Thanks for asking!

Q:  I have a Low Voltage (“C-2d”) Contractor’s License in Nevada and I need to get licensed in California.  What would the equivalent license be in CA and would I qualify for reciprocity and be able to waive the exams?

A:  The “C-7”( Low Voltage) classification in California is the equivalent to your Nevada license.  If you have been actively licensed in Nevada for five out of the last seven years and you passed the trade exam in Nevada, you should qualify for reciprocity.  Reciprocity grants you a Waiver of the trade exam, however you are still required to take the Law Exam.

Contractor’s Note: Application fees rise on July 1, 2017, so save money by using the time now and give us a call if you need assistance to beat the clock!

By Shauna Krause, President, Capitol Services, Inc.

While knowledge is power, knowing where to go for the answers is half the battle. Get expert assistance immediately when you call 866-443-0657, email, or write us at Capitol Services, Inc., 1225 8th St. Ste. 500, Sacramento, CA 95814. Research past columns at