NAME CHANGE, BANKRUPTCY, FINGERPRINT TIMING AND LICENSE OWNERSHIP
Has the name been changed to protect the ‘entity’? Change is both hard and easy, depending on how, and another contractor is asking a ‘pointed’ question since he’s just passing through…
Q: You are currently helping us with obtaining a Contractor’s license in California. If the ownership of the business changes, is the Contractor’s license considered to be part of the business?
A: It really just depends on how the ownership changes. If you are referring to selling the business, whether the Contractor’s license remains with the business depends on if it’s an asset sale or a stock sale. In an asset sale, the new entity would be required to obtain a new Contractor’s license. With a stock sale, the license remains in place. If you are referring to transferring ownership from one individual to another, the license remains in place. The CSLB doesn’t necessarily concern themselves with ownership, except for the percentage of ownership the Qualifying Individual holds.
Q: Is a bankruptcy a reason to deny an application for a Contractor’s License?
A: A bankruptcy is not alone a reason for denial of a Contractor’s License. It depends on the particular situation. The CSLB has the potential to deny a license due to unsatisfied judgements, liens, etc. in relation to a Construction project, or if a Company or individual on the license application has outstanding liabilities in relation to taxes or fees owed to State agencies.
Q: I understand that all of our officers will need to get fingerprinted to obtain a CA Contractor’s license. You had previously told us it would best for them to get fingerprinted in CA via live scan in order to prevent any delays in the processing time. Our two officers will be driving through California next week. Is there a way to get the paperwork they need prior to submitting the application, or do they have to wait until we submit the signed application paperwork?
A: No, they cannot get fingerprinted ahead of receiving the appropriate paperwork from the CSLB, which will not come until the signed application is submitted.
Q: We want to change our business name on our Contractor’s License. What is the process with the CSLB?
A: If your Company is a Corporation or an LLC, you will first be required to change the Business name with the CA Secretary of State. With the CSLB, you are required to file an Application to Change Business Name and/or Address. Be sure it’s signed by a current member of the license’s personnel and be sure the new Business name does not conflict with the type of business or the classification the license holds.
Capitol Services Inc
3609 Bradshaw Rd. Ste. H #343
Sacramento, CA 95827
Phone: 866-443-0657 (toll free)
Fax: 916-443-1908
Email: info@cutredtape.com