Contractors Business Name Style
Many people get caught in the contractors business name style law, or B&P Code 7059.1, and end up with a rejected contractor’s license application.
Update: Dec. 6 2019
The CSLB told an applicant that he must use a DBA with four specific words in it. They told the applicant that he could only use those four words without changes or alterations. So here we go again… the cslb crossing the line between state agency and dictatorship.
Continuing with the original post…
The contractors business name style code section states: “7059.1. Misleading or incompatible use of name styles (a) A licensee shall not use any business name that indicates the licensee is qualified to perform work in classifications other than those issued for that license, or any business name that is incompatible with the type of business entity licensed.
(b) A licensee shall not conduct business under more than one name for each license. Nothing in this section shall prevent a licensee from obtaining a business name change as otherwise provided by this chapter.”
The Contractors State License Board’s (CSLB) interpretation of this law is that your business name must be compatible with the classification you are applying for. If you are applying for a B-General Building license, your business name must have the words construction or building in it (unless you are using your personal name as the business name). So… if your corporate name, partnership name, or sole owner DBA is “My Business Rocks, Inc.” or “My Business Rocks & Sons” or “My Business Rocks, LLC”, the CSLB will require you to add a DBA that matches the classification you are applying for.
My Business Rocks Construction (B-Gen)
My Business Rocks Electrician (C-10)
My Business Rocks Plumbing (C-36)
My Business Rocks Drywall (C-9)
To give you my straight up opinion… this law is government overreach at it’s finest. If I want to name my business “My Business Rocks” I should be able to do that… without having to add a DBA (a DBA that then must be included on all contracts, advertising, etc.).
A client sent me the correction letter he received from the CSLB where the tech told him “Business name must be strictly compatible with the classification in which you are applying for, not allude to any other classification and not be too vague.” Too Vague!!?? Does someone at the CSLB have the title of “Too Vague Police”? Who determines what is too vague and what is not?!? For people like me who help applicants wade through the red tape, it makes it very difficult when CSLB techs jump ship and begin changing the laws as they wish.
You’ll notice in the law section mentioned above there is nothing that states that the business name “must be strictly compatible with the classification” being applied for. It states, “or any business name that is incompatible with the type of business entity licensed” (emphasis added) My Business Rocks, Inc. does not indicate that I’m performing work in a classification that I’m not applying for. It also doesn’t suggest that my intent is to operate as a sole owner with a corporate name.
Wouldn’t it be nice if government agencies actually followed the law as written? And wouldn’t it be nice if the CSLB techs didn’t alter or amend the contractors business name style law, or any other law, whenever they feel like it?
Update: 5/28/19
A current client applied for a new license (waiver) with the B-General classification and his/her corp name is X Y Solar. I informed him/her that the CSLB will ask for a DBA because the corp name didn’t include construction or building. He/she was adamant that there are other licenses out there with Solar in the name that only hold the B classification. I agree, there probably are, but CSLB business name cops are cracking the whip, and as much as he/she doesn’t want to use a DBA (i.e. X Y Construction) the CSLB won’t move the app forward until he/she provides them with one.
Also… a DBA (or FBN) filed statement from the county where the business is located must be included with the amended application. (again… nothing in the law that says the CSLB can ask for this filed FBN statement)
Update: 6/18/20
The CSLB created a business name style committee. This committee is reviewing questionable business names and retraining staff on the use of 7059.1. Many of the cslb techs are mis-applying that law section, and I’d like to think that I’ve helped in pointing this out to cslb management so that this can be corrected.
To reiterate: if you have a business name that does not denote construction or building or any specific trade in any way, you do not need a DBA. XYZ, Inc. would not require a DBA by the cslb. On the flip side, XYZ Contracting, Inc would need a DBA. XYZ Construction, Inc., applying for the B classification, would be an acceptable name. XYZ Roofing, Inc. would be an acceptable name for the C-39 classification… etc.
If you have a current license that has a business name that would require a DBA under today’s rules, and you convert that license to a corp or LLC and keep that business name, the cslb will not require that you provide a DBA. Basically, they’re grandfathering in old business name under certain circumstances.
Update: 4/7/21
I recently spoke with the cslb personnel who review business name styles for acceptability. They assured me that they are being a little more lenient then they have in the past, which is a good thing since I’ve been battling this issue for over 15 years.
The basic rule still applies… if your business name suggests a trade that is different than the trade you are applying for, you’ll either need to change the name or add a dba. There are exceptions to that rule of course. The word “Services” in a business name that is not also trade specific would require a change or a dba. Example: ABC Contractor Services would require a change/dba. ABC Cabinetry Contractor Services (applying for the C6) would not require a change/dba. There are other trigger words on the cslb’s list that require a change or dba that they’re not willing to share (I asked), but they will entertain requests for exemptions on a case by case basis. If you have a dba name issue and need some clarification, feel free to contact me via the contact form below.
Hi I have a CALIFORNIA D42 non electrical sign installation contractors license
My license was approved as freedom signs, I have just applied for freedom signs llc and my application was rejected due to the name.
not allowed to use signs? it’s literally in the designation and was previously approved. should I fight it or register another dba and not use it?
shop has used this name for 50 years with the same D42 non electrical license without issue
Hi Dan,
The cslb business name police strike again. They are so obsessed with dictating what businesses can call themselves because they believe consumers are too stupid to be able to make a decision on their own… well that last part might be true, but… lol. Their POV is that “signs” would also suggest the C-45 classification.
They won’t budge from their overreaching position, so it’s just easier to give them a dba and move on.
I sumbitted my company name as ABC Framing for c5, no issues so far, but can i add construction to my logo, EX: ABC CONSTRUCTION FRAMING for stickers and tees. Or would that be an issue
Hello Alex,
It would be an issue if the cslb found out that you were using Construction in your advertising when you hold the C-5. The cslb business name police would say that Construction can only be used for licenses that hold the B-Gen class.
I applied for a General B License in CA and the CSLB emailed this: The initial/name(s) in your business name cannot represent any individual(s) not listed as part of the application personnel. If the initial(s) represent an individual(s) other than those listed, you must correct the business name in SECTION 1 on the attached application copy.
I applied as a Sole ownership and only myself as the owner and qualifier. I used Guerra Group Design and they highlighted “Group” has not allowed.
Hello Marc,
Correct, you cannot use Group in a business name for a sole prop license. You can use your personal name as the business name, your initials, a name that does not related to any contractors classification, or a name that is directly related to the trade you’re applying for. i.e. MG Design could be acceptable. Guerra Construction & Design could be acceptable.
I changed entities from a sole proprietor dba Gioletti Enterprise to Gioletti Construction Inc. I hold a C-12, D49/C-61, hazmat. My name change application was rejected because I can’t use the word construction. It took me a while to change entities, DOT, banking, logo, articles and all that. Now I can’t use the company name and have to use a DBA. Hows my options look?
Hello,
You’ll need to add a dba that is excavation/grading specific. When advertising, you can list/show the dba or the dba and the corp name. For some reason the law states that you can’t use just the corp name. But if you include your license number, as the law requires, in all advertising then you should be mostly fine* if you just use the corp name. *the cslb could fine or cite you for the advertising violation.
Perseverance Works LLC was rejected for a C-6 license. CSLB says we cannot use the name “Works” because it is incompatible with the classification of license we have applied for. They want us to add a DBA. Would we have any chance of fighting this? Does “Works” suggest a specific trade that conflicts with our C-6 application?
I’d fight it. “Works” does not signify any trade classification at all. Here’s what the law states:
7059.1. Misleading or incompatible use of name styles
(a) A licensee shall not use any business name that indicates the licensee
is qualified to perform work in classifications other than those
issued for that license, or any business name that is incompatible
with the type of business entity licensed.
Once again, they are overstepping the law as written. They need to be reminded every once in a while that they are not in charge of the English language.
Thanks – let’s see how we go…
I applied for a general B in 01/23/2022 as an addition class to my D24 metal products with business name Action Rain Gutters.
As of 04/22/2022 they added the General B classification under my current business name with no issues.
That’s great to hear Jeff.
Since the business name is/was associated with the original classification you applied for, they won’t make you change the biz name when you add classifications.
question is can I add a DBA such as JM Construction to the same license
Absolutely!!
same issue here, I filed under Josh King independent ,which is my name working as an independent person with a corp. they told me too vague. Its for a c-39 .I will be doing seamless gutters, roof repairs. I dont want to put seamless gutters as a dba as they might get me on a technicality by saying I can’t advertise for that even though it falls under that category . they will probably tell me to put roofing after the name which is not going to be my main advertising focus.
Too vague was their reason for the dba request? 7059.1 states “A licensee shall not use any business name that indicates the licensee is qualified to perform work in classifications other than those issued for that license, or any business name that is incompatible with the type of business entity licensed.” Your corp name does not denote or state any classification or a classification that you are not applying for, therefore, the business name should be acceptable.
Pass that on to the tech working your app. If they still push back, let me know and I’ll step in.
seamless gutters does not fall under a C-39 roofing. you have to have a D-24 or a C-43 to install seamless gutters. If you are only making roofing repairs once in a while on top of your seamless gutter business, you don’t need a C-39 license as any additional work that deals directly with you license work doesn’t require an additional class. For example if you are installing rain gutters and the fascia board is rotted out. you are allowed to make repairs without the need for a carpentry/building classification just by using your sheet metal classification. So if your main focus is rain gutters i surely wouldn’t use a C-39 as this requires workers comp with or without employees at a much higher rate than D-24 and a much higher insurance premiums..
Nicely stated.
I’m registered in Florida as a GC (Florida has multiple classificiations for construction) as Alonso Builders, LLC. However my California license was kicked back since I was submitting as a sole proprietor in California I couldn’t be Builder(S) plural and I need to correct and resubmit as Builder. I had an attorney handling my application and she said that was a new one to her. Regardless, I’ll be qualifying a company soon enough so it was easier to just do it than fight it.