Q: I have a question concerning license change requirements. I have recently purchased an existing corporation with a license of the same classification as my sole proprietor license. I am trying to figure out what applications/forms I need to complete to transfer the corporation license with me as the RMO. The CSLB website is confusing. Could you assist me in making sure I do this correctly?

A: Thank you for your e-mail. "Transferring the corporation license" depends on whether this new business was a stock or asset purchase. If this was a stock purchase, you should be able to take over the license number by completing an Application to Replace the Qualifying Individual. If you bought the assets only, you'll need to file an (7065 Waiver) Application for Original Contractor's License.

It may be a bit confusing since the CSLB has a second Original License Application — for those taking the exam — that looks nearly identical to the 'waiver' forms. If applying for a new license, you will need to file a new bond and Worker's Compensation certificate (or exemption).

Q: I would like to get a contractor's license but do not have a construction background. I recently retired from a profession that is unrelated to construction and would like to try my hand at building. Is there any way to get a license in my name without having the experience?

A: Interestingly, I received three separate calls in one week with the same question. The "profession" referenced above was one that typically requires seven to eight years of college and advanced study — which in no way qualifies someone to be a contractor. Being a contractor, as is the case with many professions, is not something you "try your hand at." Being a contractor takes years of on-the-job training and even more years of honing a chosen craft or trade. At minimum, the state requires four or more years of experience at a journeyman level or above to qualify for the specific trade exam. While education can be used in lieu of (up to) two years experience, you cannot simply wake up one morning and become a contractor.

Decide which type of license you're interested in and contact an established contractor to see if they have a training program. Many trades have an established apprenticeship program that would be very valuable. You always have the option of starting a company, hiring someone as your responsible managing officer or employee (RMO/RME) and gaining your "on-the-job" experience in this manner. It's possible, but it's not easy or immediate.

Q: I am presently the RME (responsible managing employee) on our company license. I was just appointed as the VP for operations. Do I need to notify the Contractors Board? If so, should we complete the Application to Report Current Officers?

A: Congratulations on your recent promotion. Ironically, even though a 'change of officers' has occurred, you do need to notify the CSLB, but strangely enough in this case it cannot be done using a Change of Officers form. Because you are the qualifier, you must file an Application to Replace the Qualifying Individual. This, in effect, means you'll be replacing yourself, and thereby become the 'new' qualifier as RMO, or responsible managing officer.

Q: I saw two active CSLB license numbers listing what appears to be the same corporation name. Is this legal? Can a California corporation be assigned more than one Contractor's License number at the same time? Does the CSLB tie the state corporate number to the License? PS: Keep up the great columns!

A: Regarding your questions: It is perfectly legal for a corporation to have more than one license number. In fact I am aware of some companies that have four or more licenses for the same corporation. These are tied to the same corporate number and can be structured in several ways.

If a corporation wanted to be separately licensed in several different classifications, they could have a different license number for each entity. In this way the company could sign contracts under different names yet be part of the same corporation. For instance, they may want to identify their plumbing operations separately from their HVAC business. It is my understanding that the CSLB will not allow a company to simultaneously have two license numbers for the same corporation with the SAME classification.

A second reason a corporation might want to have more than one license number is to retain the business names of companies they purchase. For example, an existing company purchases three businesses. It retains its existing license and applies for three new licenses, each with a 'Doing Business As' or 'DBA' designation. The end result is four license numbers for four separate entities under one corporation (and one corporate number).

Finally, if a company wanted to divide itself into divisions so each would have a separate license number, it could apply for multiple licenses in order to bid under these different names. In this case rather than a 'DBA,' their business name would, for example, read: XYZ Construction, a division of USA Building Company, Inc.