IN THIS SERIES OF POSTS, I’LL TELL YOU HOW TO GET A CALIFORNIA CONTRACTORS LICENSE. HERE IS THE FINAL PART.
26) Should I Incorporate, operate as a Sole Owner or a Partnership?
a) The differences between these entities are that when a license is issued to a Corporation, it belongs to the Corporation. Qualifiers and Officers can come and go, but the license belongs to the Corporation.
b) A Sole Owner license does not have the protection that a Corporation has, but the license belongs to the individual.
c) A Partnership requires at least two parties, a Qualifying Partner and a General Partner. If either partner leaves the company the Partnership License is automatically cancelled.
27) Can I form an Limited Liability Company or LLC?
Yes. As of 1/1/2013, contractors are now allowed to form LLC’s. The problem is, only 10% of LLC applicants are issued licenses. That is because the financial requirements to obtain a $100,000 surety bond are very strict. Think twice about applying for an LLC license. And consult with your CPA before doing anything.
28) Are there advertising requirements?
Yes. Your license number must be on ALL advertising materials.
29) Can I advertise that I’m bonded?
No. State law prohibits advertising that you are bonded or insured.
30) Can I offer Electrical services if I have a Plumbing license?
No. You cannot advertise, offer, or enter into a contract to perform services for a classification that you do not hold.
There you have it. The 30 most frequently asked questions about how to get a California contractors license. Remember, Contractors License Service, and The License Guru are always here to answer any questions you may have. So don’t hesitate in contacting us.
I am a Navy vet and former laborer for a B-Gen Bldg contractor, I built mobile homes for many years, I worked at the Contractors State License Board for 5 yrs, and have been operating a contractors license service company since 2005.
