Q: I am at the last stage of obtaining my contractor’s license. I’ve passed the exams, passed the background check, etc. The CSLB is requesting that I obtain an LLC Employee/Worker bond. I received a quote from my bonding company for $3000 for just one year! I tried to reach the CSLB but was only able to leave a message and that was two days ago. What I want to tell them is one, even though I’m registered as an LLC my accountant has filed with the IRS to have my company treated as an S-corporation. Two, I do not have employees. Am I still required to obtain this LLC Employee/Worker bond?
A: Yes, you are still required to obtain the LLC regardless of whether you have employees or not, and regardless of how the IRS taxes the Company. All companies who are registered as an LLC with the CA Secretary of State are required to have the LLC bond on record with the CSLB.
There is a brand new classification contractors! According to this bulletin from the Board-
New C-49 Tree and Palm Classification Takes Effect January 1, 2024
Sacramento, CA – The Contractors State License Board (CSLB) will accept applications for the new C-49 – Tree and Palm Contractor classification starting January 1, 2024.
CSLB created this classification to ensure tree service contractors are tested on health and safety protocols in the tree service industry. The regulation establishing the C-49 was approved on March 30, 2022. The C-49 trade examination was developed and finalized in December 2022.
Starting January 1, 2024, the following changes affect tree service specialty contractors:
CSLB will no longer accept applications for the C-61/D-49 Tree Service limited specialty classification. Applications received for the C-61/D-49 Tree Service classification after December 31, 2023, will be processed as a C-49 Tree and Palm application.
Contractors who wish to specialize in tree service work who do not hold a C-61/D-49 Tree Service classification will need to apply for the C-49 Tree and Palm Contractor classification.
All applicants for the C-49 Tree and Palm Contractor classification will need to sit for a trade examination regardless of other license classifications they hold.
CSLB will expediate the application experience review for C-49 applicants that have held an active C-61/D-49 Tree Service license for at least four years.
Contractors who hold a C-61/D-49 Tree Service classification issued before January 1, 2024, may retain and work under that classification after January 1. However, C-61/D-49 are encouraged to apply for the C-49 classification, which will become the industry standard.
While the C-49 and C-61/D-49 classification descriptions differ slightly (the C-49 description includes palms) CSLB regards the classification of work as the same.
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