SBE News

Capitol Connection #1066

As the contractor’s licensing expert, I get all kinds of questions. Many are simple, straightforward issues with easy to understand answers. Some are complex, multi-layered ‘regulation’ cakes that require answers one slice at a time! Let’s cut to the chase…

Shauna Krause, writer of Capitol ConnectionQ:  I am a Sole Owner of a CA General Building “B” License.  I established an ‘S’ Corp last year to operate contracts under my license but have not yet signed a contract using the Corp, nor have I put the license under the Corporation’s name.   At this time, I’d like to bring on a 50-50 partner under the ‘S’ Corp and enter into contracts using my license.  At the same time, I’d like to also have the freedom to enter into my own contracts outside the partnership, also using my license.  My first question is, how can I bring my Sole Owner license to the Corporation and bring on a partner?  Second question, can I use the same license and enter in to separate contracts with a different fictitious name than the one used for the corporation?

A:  You cannot operate under two different entities with one license number.  You would need two separate license numbers to operate under both the Sole Proprietorship and the Corporation, so here would be your expert options: A)  Apply for a new license for the Corporation to be issued a new contractor’s license number, while keeping your current Sole Proprietor license active or; B)  If you want your current Sole Owner license number to belong to the Corporation, you can apply for a license for the Corporation and ask that your Sole Owner license number be re-issued to the Corporation, and once that’s done, you can apply for a new Sole Proprietor number for yourself.  Either option will allow you to operate both as the ‘S’-Corp and as Sole Proprietor. No matter how you slice it, it would really just be about which entity you want to have the higher/lower license number.

Q:  I am currently a licensed contractor in Nevada and I will be moving to California soon.  I want to start the process of obtaining my CA License.  Nevada requires financial information to get a license, and I was required to submit financial information when I renewed as well.  Is there a requirement to file a financial statement annually as part of the renewal process in California?  I’m just curious because I don’t know how much work I will get in my first year of business.

A: No, the CSLB does not require financial information in order to renew your license.

Q: Our company has had several personnel changes since we originally obtained our license.  I know we need to update the CSLB, but I’m wondering how many Officers we are required to show on our license.  Several of our Officers are not really involved in the day-to-day operation of the company.

A:  After doing some research, I see that your home state is Delaware.  Foreign corporations are only required to document their President with the CSLB.  You have the option to list more if you’d like, but at the minimum they want you to document the President.  You should Disassociate the personnel you have listed on the license who are no longer with your company.

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