SBE News

Capitol Connection #1069

A friend suggests that, ‘the only thing to count on is things are going to change.’ Certainly, also true in the regulation of contractors. Our first inquiry gets help with more than one change to get us started…

Shauna Krause, writer of Capitol ConnectionQ:  We want to change our business name and we have also had ownership changes.  Do we need to re-apply for a license?  I want to make the changes properly, but I’m hoping we don’t need to cancel and start over again.

A: If you are simply changing the name and ownership but the entity itself will remain the same, you do not need to cancel and re-apply.  You must first make the name change with the CA Secretary of State, and then you can file the appropriate changes with the CSLB.  Contact our office for more information with this process.

Q:  I set up a corporation and I’m looking into getting a Contractor’s license but I don’t have the required experience to take the exams and Qualify the license.  I’ve been speaking with another contractor who has a current license and he is willing to be a Responsible Managing Officer (RMO) for my license.  I understand I’m required to give him 20% ownership of my Corporation, so he can keep his own license Active as well.  Do I have to list him as an Officer with the Secretary of State?

A:  It depends on what his corporate title is. I looked up your company and you have a domestic California corporation, therefore you are required to list your President, Secretary, and Treasurer on the license application.  If your RMO is one of those three titles, yes, you are required to list him/her with the Secretary of State.  However, if your RMO does not fall in one of those roles/titles, such as Vice President or Assistant Secretary as an example, you are not required to list them with the Secretary of State.

Q:  I have an Arizona company and I am submitting an application for a new Limited Liability Company (LLC) license in CA. I read that two Bonds are required, a $15,000 Contractors Bond and a $100,000 LLC/Worker Bond.  I contacted my surety company and they said I need to have a license number before they can issue the Bonds.  However, the CSLB’s instructions imply I will need the Bonds before I can be issued a license number.  Which is correct?

A: You will need to obtain the required bonds before the CSLB will issue your license.  Once your application is submitted, the CSLB will assign you an application fee number.  Surety companies can issue Bonds with either the license number or the application fee number.  The application number will be issued to you typically about 10 business days after your application is submitted.

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