Here to help contractors get a ‘handle’ on problems, without blowing smoke. While some extended license opportunities exist in CA, the dry heat of AZ makes them disappear! Not mine, but let me answer one for ‘Dad’…
Q: We acquired a licensed business and have applied for a new license using the Qualifying Individual who currently qualifies the business we acquired. The CSLB has requested that he disassociate from the current license in order for the new entity to officially be licensed. However, the currently licensed company still has projects going on. How do companies typically handle this for such acquisitions?
A: You can delay the submittal of the Disassociation for a bit. Once the CSLB requests that from you, you aren’t required to provide it right away, they will keep the application for the new company pending/active for a period of time while you are still working under the current license. However, that obviously delays the issuance of the new license! Be aware that once he disassociates from the current license, that license will have 90 days to continue operating which is usually enough time to finish work in progress.
Q: I am a licensed HVAC (C-20) contractor in California. I have my own Sole Proprietorship license and then I also am the RMO for three other Company licenses, each of which I own 20% of. I wanted to do the same thing in Arizona. What is their rule regarding how many licenses I can Qualify for?
A: Arizona only allows for you to be the Qualifying party for one additional entity and in order to do so, there must be common ownership of at least 25% between the two licenses.
Q: My Dad has had a Sole Owner license since 2016 and in 2019 we incorporated. When he incorporated, he was issued a new license number. I have been an active employee of his since he’s been in business, but only on the books since the incorporation. I am an Officer of the Corporation with 25% ownership. Can my father transfer the license to me? If he can transfer the license to me, can he remain a part of the company? Either as a partner with a percentage, or as an employee?
A: He can transfer the license to you, however at the moment you would be required to take the exams (C-10 & Law). If you wait until after 4/23/2024 which is when the license will have been in existence for five years, you would be able to take over the license as the RMO without needing to take the exams. Your Dad can remain an Officer/owner of the company as he is now, or he can become an employee, either way. If he wants to stay on as an Officer/owner, you two would essentially be switching roles. You would become the Responsible Managing Officer (RMO) and he would remain as an Officer on the license.
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 firstname.lastname@example.org, or write us at Capitol Services, Inc., 3609 Bradshaw Rd, Ste H, #343, Sacramento, CA 95827. Search past columns at www.cutredtape.com.