SBE News

Capitol Connection #1097

I have a ‘limited’ answer for a corporate transfer question and another to ‘manage’ for different contractors. Although, there were no ‘yellow roses,’ I will also answer an out-of-state inquiry before finishing with some ‘landscaping’ work…

Shauna Krause, writer of Capitol ConnectionQ:  Our currently licensed ‘S’-corporation is applying for a license for a newly formed Limited Liability Company (LLC).  I understand it will be several weeks before the new license will be issued.  Is it possible for us to transfer the Corporation’s assets to the LLC, and do business under the LLC, with the corporate license number while we are waiting for the CLSB to issue the new license?

A: One entity cannot use another entity’s license number under any circumstances. So, no.

Q:  We have a current Contractor’s license in CA in good standing.  Our “Managers” are no longer a part of our LLC.  Is there is any concern with removing them from the license?

A:  Possibly.  The personnel you have listed with the CSLB and the Secretary of State have signing authority for your Contractor’s License.  So, you will want to make sure when you remove personnel, you still have individuals listed on the license who can sign for any changes/updates (renewals, Officer changes, Qualifier changes, etc.).

Q:  We are a Texas-based company and we need to get a California Contractor’s license.  We are going to be applying for an “A” (General Engineering) license.  The purpose of the license is so we can contract with a sub-contractor to do the work.  Does the sub need to have the same classification as we do?

A:  Both the Contractor signing the contract, as well as the sub-contractor doing the work, both need to have the appropriate contractor’s license.  If your sub-contractor will only be doing specialty work, they may only need a ‘C’ classification license.  Feel free to contact me to discuss this further.

Q:  I have over 20 years of experience doing landscaping work.  Is there any way I can obtain a Sole Owner license without needing to take the exam?

A: Unfortunately, that won’t cut it.  You cannot qualify for a Waiver of the exams for a Sole Owner license based on experience alone.  If you have over 20 years of experience, you can definitely qualify for the license, however you would need to sit for the exams.

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