Capital Connection Q & A for Contractors
By Shauna Krause, President, Capitol Services, Inc.
UFO’s, or unidentified foreign Officers in LLC licensing that is! An ‘exact’ expert lesson on foreign entity licensing in CA. A ‘double-down’ answer for one, and another contractor who has an insurance ‘fail’. Generals note the final graph on an opportunity that may be helpful in our pandemic times…
Q: We are an Illinois ‘S’ Corporation and we need to obtain a Contractor’s License. I read online that many applications, specifically LLC applications, are rejected due to the personnel on the application not matching what is on file with the Secretary of State. We are a Canadian company, and our only US Citizen we have listed with the Secretary of State is the individual who will serve as our Qualifying individual. He is based in Texas, where our US home office is. I have several questions. First, will it be a problem that our President and Secretary are Canadian citizens? Second, is it permissible that our Qualifier lives in Texas, or does our Company need to establish a California address? Lastly, do the same rules apply to Corporations vs. LLC’s regarding the Personnel issue?
A: Corporations and LLC’s are in the same boat when it comes to Personnel matching what is on file with the Secretary of State (SOS). LLC’s must match exactly, meaning all Members or Managers who are listed with the SOS need to be listed on the license application. For Corporations, the President, Secretary, and Treasurer as are on file with the SOS need to be listed on the license application.
Your company does not need to have a California address in order to obtain a Contractor’s License, however all Corporations and LLC’s are required to have a Registered Agent on file with the SOS. Let me know if you need assistance with this.
All individuals listed on the Contractor’s License application need to either have a US Social Security Number or have an ITIN (Individual Taxpayer Identification Number).
Q: We manufacture and install modular homes. We previously had a General Building (“B”) California license back in the 90’s that we let lapse due to no one asking/inquiring about us needing a Contractor’s license. We always hire sub-contractors to do our work, including electrical, plumbing, and any other additions needed on the modular homes. Do we need to have a Contractor’s license being that we are subbing out the work? And if the answer is yes, would our previous Qualifier be required to go through the testing process again?
A: Yes, your company needs a Contractor’s License. The entity signing contracts for work, as well as the entity performing the work, both need to be properly licensed.
Q: Our license is currently Suspended for lack of proof of insurance. Is this something I can submit online or what is the process?
A: Your insurer should have the ability to submit your certificate online. The CSLB is a bit backlogged currently, so it may take some time for them to apply it, but as long as the effective date of the insurance policy doesn’t show a lapse, the license shouldn’t either.
Attention “A” and “B” Contractor’s:
During the pandemic, you can boost your business by taking part in the Earthquake Brace & Bolt program. The EBB program helps qualified licensed “A” General Engineering and “B” General Building contractors become eligible for residential seismic retrofitting projects through a free online FEMA training. Recently, the program received $23 million in FEMA grants for homeowners to complete seismic retrofits, creating more than 7,600 jobs for licensed contractors. Learn more at earthquakebracebolt.com or on the CSLB website cslb.ca.gov.
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 email@example.com, or write us at Capitol Services, Inc., 3609 Bradshaw Rd, Ste H, #343, Sacramento, CA 95827. Research past columns at www.cutredtape.com.