CORPORATION. PARTNERSHIP LICENSE Where does it lead to...? Examination Waivers & Much More. 53 Years of Expert Reliable Service EXAM WAIVERS
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1 53 Years of Expert Reliable Service CONTRACTOR S Examination Waivers & Much More PRESORTED STANDARD U.S. POSTAGE PAID SANTA ANA, CA PERMIT NO. 147 Journal S O L E O W N E R S P A R T N E R S C O R P O R A T E O F F I C E R S A B S E N C E O R D E A T H EXAM WAIVERS Exam waivers under section do apply, but the implementation is reserved for a select level of qualified applicants. Are You Eligible? Review the following conditions. If you can satisfy the Registrar s requirements by meeting one or more of the situations described, you may be eligible for a waiver of the state examination. (a) Replacing an RME (b) Family member of a sole ownership (c) General partner of a license (d) Officer of a corporation (e) Supervising employee of a corporation Qualified Applicants... Pair-up your position with the matching paragraphs that follow on the next page (a thru e). Next, consult with us. Then determine if you can provide enough evidence to meet the conditions to qualify. Continued on page 2 Call us for a briefing. Make your own decision. It can make a big difference. PARTNERSHIP LICENSE Where does it lead to...? A partnership license is non-transferrable. It can never belong to any one partner. Upon a disassociation, absence or death of any one partner, the license will be cancelled! The listed partners on a license in good standing for the past five years may be eligible for a waiver of the examination for the classifications listed on the license. Qualify for your own license. Start by calling us for a briefing. THE CORPORATION While a corporation license has remained in good standing for the past five years, officers listed on the license may be eligible for a waiver of the State examination in the same classification as listed on the license. This may include a supervising employee.
2 53 Years of Reliable Service EXAM WAIVERS (a) Replacing an RME (After 5 years) Listed on the license as an owner, officer or partner, the RME may be replaced. The examination may be waived. You may keep the same number. (b) Family Member of Licensee (After 5 years) In the event of the absence, retirement or death of the licensee, an immediate member of the family may be eligible for a waiver of the examination. (c) General Partner (After 5 years) While remaining on a license in good standing, the general partner may be eligible for a waiver of the examination. Thereafter, an original license may be issued. (d) Officer of a Corporation (After 5 years) Any officer actively engaged in the business may be eligible for a waiver of the examination. The officer may replace the existing RMO/RME and/or qualify for an additional license number. (e) Supervising Employee Corporation (After 5 years) A supervisory employee, not listed on the license, may be eligible for a waiver of the examination. The employee may replace the existing qualifier as well as apply for an additional license. ADDING SOMEONE TO A LICENSE... Which Way To Turn? Contractors ask if they can add someone to their license, a son, daughter or spouse... Not if the license is a sole ownership or a partnership, but a corporation, YES! Sponsorship: A contractor may qualify other applicants for a license. No examination. A new license number will be issued. Death or Retirement: In death or absence, a sole owner license may be reissued without examination to an immediate family member. Reissuance: A sole owner license may be reassigned to a corporation or LLC. HAVING TROUBLE QUALIFYING FOR A LICENSE? Waive the Test / Pick a Sponsor An applicant may waive the examination for a contractor s license by any one of the following: (1) Sole Ownership Can qualify with an RME. (2) Partnership Can qualify with an RME or a partner. (3) Corporation Can qualify with an RME or an RMO. Note: After five years, the qualifying individual may be replaced without further examination by applicants listed on the license. ADDITIONAL CLASSIFICATION NO EXAMINATION Other than the A or B classifications, any additional C classification may be added to a license without further examination, under the following conditions: (a) For five of the past seven years, the qualifying individual was actively engaged in the construction activities of the classification being applied for. The applicant must provide conclusive proof. (b) The individual has had within the last 10 years not less than four years experience in the classification applied for. RME? R E S P O N S I B L E M A N A G I N G E M P L O Y E E The RME may qualify a license, but does not own it! After five (5) years, any owner, partner or officer may be eligible to remove the RME; Keep the license number, and qualify for a waiver of the State Examination.
3 53 Years of Reliable Service BUYING OR SELLING A CONTRACTING BUSINESS... Take a moment and check with us first. It s to your advantage... THINKING OF INCORPORATING? Use your existing number or apply for a new one? HIGHLIGHTS SELLING A LICENSE A sole owner contractors license number reissued to a corporation may be sold or reassigned. SECRETARY OF STATE An inactive corporation contractors license will not be activated by the CSLB if the corporation is not in good standing with the Secretary of State. LOSS OF OWNERSHIP A personal contractors license reissued (transferred) to a corporation belongs to the officers of the company. The ownership cannot be reversed. COMMUNICATION IS CRITICAL Under the current regulations, it is difficult to qualify for a license classification. Rely on us to address the issues necessary to satisfy the CSLB s policies for approval... PERFORMANCE BONDS Unlimited Amounts $$ Since $350,000. FOR CONTRACTORS WITH GOOD CREDIT. NO FINANCIALS REQUIRED. AIDING AND ABETTING IS PROHIBITED A corporation contracting with an active sole-owner s license number is not legally licensed to act in the capacity of a contractor. C O R P O R A T I O N? P A R T N E R S H I P? CORPORATION LICENSE : Will cost a little more to set-up, but it is safer to conduct business. May be formed with one individual as President/Secretary/Treasurer. Reissue your sole owner license or a new number may be issued. The S Corporation is preferred. It removes double taxation. The license may be reassigned or sold. Limits personal liability. The corporation is liable to creditors. Officers may be added or deleted. Officers are eligible for exam waivers after five (5) years. CAUTION: For an LLC, an annual surety bond of $100,000 plus the $15,000 license bond is required. PARTNERSHIP LICENSE : This license cannot be reissued or sold, a corporation can. Upon the death or disassociation of any one partner, the license is cancelled. A corporation is exempt. Partners cannot be replaced. Corporate officers can. The loss of a partner requires a new number. Corporations continue with the same number. After five years, a partner may qualify for a waiver of the examination. A surviving partner cannot keep the same number. A new license must be obtained. SUMMARY : A partnership license is only as strong as its weakest partner. In the end, the partnership license will be cancelled with the absence of any one partner. A corporation may remove its weakest officers and carry on indefinitely.
4 TIPS FOR THE CORPORATION LICENSE RENEWING: The contractors license cannot be renewed unless the corporation is in good standing with the Secretary of State (SOS). ACTIVATING: When the contractors license is placed on inactive, it cannot be activated unless the corporation is in good standing with the Secretary of State (SOS). DISASSOCIATION: When an officer listed on the contractors license chooses to disassociate, liability for a bond payout or disciplinary proceedings of continuing operations may exist unless steps are taken to eliminate any bond indemnity, and when applicable, amend the records of the SOS. STATEMENT OF INFORMATION: Must be filed annually. CORPORATE MINUTES: At a minimum, prepare the minutes at least annually. Does not require an official filing. It is a valuable form of record keeping to maintain your personal liability shield. SELLING: The officer(s), purchasing a corporation contractors license who intend to be listed, must be approved by the CSLB. Otherwise, the existing officers on the license will continue to be liable for all construction undertaken or in progress. S O L E O W N E R S P A R T N E R S C O R P O R A T E O F F I C E R S A B S E N C E O R D E A T H California Contractors State License Examination Waivers at a Glance By Paul Lucente INVEST IN YOUR OWN SUCCESS Interested in a Waiver of the Examination or Any Other Processing Procedure? Just call us! Preparing an application is not easy, reaching us is. Contractors Exam Waivers Most Popular Request Contact Us We provide assistance to contractors qualifying for a state license as an individual or firm. The emphasis is on Waiving State Examinations for qualified individuals. > Examination Waivers > Application Processing & Consultation > License Bonding > Exam Study Guides > Contractors Journal Ja-Set (800) Toll Free (949) Phone (949) Fax info@jaset.com
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