Announcing RMO Services, LLC!

My new business has officially launched! RMO Services, LLC is finally here!

RMO Services, LLC logo

This new venture, under the License Guru brand, was created to give people a better, easier, and more affordable option to finding a Responsible Managing Officer or RMO.

Because of the strict, and some would say, prohibitive requirements of the Contractors State License Board (CSLB), it has become extremely difficult for many qualified applicants to become licensed and earn a living. That’s why I created RMO Services, LLC to bridge that gap and give people an affordable option that won’t break the bank at a time when money could be at its tightest… start up!

Is an RMO referral service a new idea? No, but what I’m offering is far superior and at much less cost than other services. Not to mention that this is being offered by The License Guru, with 20+ years of experience in construction and contractors licensing.

RMO Services Membership

I offer different levels of membership that can include:

  • Up to Three RMO referrals
  • An RMO Agreement Template
  • Full CSLB License Application Services

I also offer complete Incorporation and LLC filing services with the California Secretary of State.

  • Same Day Service
  • Free Business Name Search
  • First Annual Statement of Information Filing
  • Even more:

There’s more:

  • Purchase easy, affordable, downloadable construction documents, including a fillable Mechanic’s Lien form or CSLB Home Improvement Contract.

But that’s not all!

I also offer complete contractors insurance products to help your business get started and on its way to being a success.

License Guru Insurance Services
  • License Bonds
  • LLC Worker/Surety Bonds
  • Performance Bonds
  • Disciplinary Bonds
  • Fidelity Bonds
  • General Liability Insurance
  • Commercial Auto Insurance
  • And Workers Compensation Insurance!
  • No Financials Required
  • Bad Credit/No Credit OK
  • Premium Financing Available
  • DOI #0E82246

Questions, comments, want info on how you can be a member? Use the contact form below, check out RMO Services, LLC online, or email It will be my pleasure to serve you!

Tell your friends, coworkers, buddies, business contacts, networking friends, the mailman, and the UPS driver!! Spread the word!!

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CSLB Scrutinizing Workers Comp Exemptions

CSLB Scrutinizing Workers Comp ExemptionsThe Contractors State License Board (CSLB) is turning their attention to contractors who they believe should be carrying workers compensation.

In the newsletter article below, the CSLB discusses their plan to look into whether or not a licensee who submitted a workers comp exempt form should actually be carrying a workers comp policy.

Right off the top, any licensee who has employees must and should have workers comp. It’s the law. It benefits the contractor and his employee’s and their families. If you know me, you know that I’m always on the side of the law. If, or course, it just and not abusive.

Regarding the CSLB plan… if it walks like a duck, talks like a duck, it’s a governmental agency abusing its power and authority…. Yet again!

What they’re saying is that if you hold the A-Gen Eng., C8 Concrete, C10 Electrical, C20 HVAC, C36 Plumbing, or the C46 Solar classification, you could be part of their “random” checks. I wonder why they didn’t include the B-Gen??

As with everything else the CSLB does randomly, what exactly is their process for choosing their random sample? Throw darts at a board, pull license numbers out of a hat?

The law states: “Pursuant to Section 7065, the registrar shall conduct a comprehensive investigation of no less than 3 percent of applications filed under this section to ensure that the applicants met the experience requirements of this section.” This is the go to section for a lot of what the CSLB licensing department does. They throw this thing out like it was a coup-fourre card in a Mille Borne game.CSLB Coup Forre

They must look at an app and decide there is something about it and…..BAM!! 7065 COUP FORRE! Unless of course your application is one of the critical classifications, then the minimum 3% rule turns into a mandatory 100% rule!


Anyway… back to the random workers comp sampling of the classifications listed above. I personally know plumbers, electricians, HVAC guys, and some B-Gen Bldg. guys who work alone. The fact that the cslb has selected those classifications to focus their attention shows they really have no clue what actually takes place outside of their doors.

A one man shop is going to get a call, letter, or visit from a CSLB enforcement rep and he’s going to have to stop everything he’s doing to prove that he doesn’t have employees. Just what every small business wants to deal with… the heavy hand of State Government. No thank you!

Begin article

Workers’ Comp Exemptions Will Get Extra Scrutiny From CSLB

CSLB will be taking a much closer look at licensees who file exemptions from having to purchase workers’ compensation (WC) insurance, particularly those working in trades likely to need a partner or employees.

At its December meeting, the Board agreed to a strategy to bring more contractors into compliance with California law on WC insurance. More than 50 percent of all licensees have filed WC exemptions with CSLB, a rate suspected to be too high considering the nature of the contracting work done.

Business and Professions Code section 7125 requires contractors to purchase a WC policy and submit proof to CSLB when an active license is issued, an inactive one reactivated, or at the time of renewal, unless the licensee does not employ anyone subject to California WC or files a certificate of self-insurance with CSLB. (All C-39 Roofing contractors, however, must carry WC insurance even if they work on their own.)

To identify contractors who may be improperly claiming a WC exemption, and encourage them to purchase WC policies for employees, CSLB’s Enforcement division will:

  • Perform an analysis and reach out to contractors registered with the state Department of Industrial Relations who bid on public works projects. CSLB staff will perform random checks of those contractors, and send letters to those claiming WC exemptions about the need to provide insurance if they employ workers.
  • Review a sampling of the overall consumer complaints that CSLB receives for contractor WC compliance.
  • Conduct random checks of licensees in classifications most likely to need employee labor, but who hold WC exemptions. Staff will look at those with C-46 SolarC-36 PlumbingC-20 Warm-Air Heating, Ventilation and Air-Conditioning, C-10 ElectricalC-8 Concrete, and “A” General Engineering licensees who have declared they have no employees.
  • Review permit activity in partnering counties to determine if contractors pulling permits for large projects have WC insurance.
  • Coordinate with other state agencies to further identify WC violators. Representatives from CSLB, state Department of Insurance, and Division of Labor Standards will discuss ways to raise WC compliance among contractors.

Contractors who falsely claim WC exemptions are taking a great risk to save a little money. WC violators not only face CSLB disciplinary action, but they expose themselves and their clients to liability if uninsured workers get hurt on the job.

End of article

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C-01 Contractors License Proposed Language

C-01 Contractors License Proposed LanguageThere was a stakeholder meeting at the Contractors State License Board headquarters office today that discussed the C-01 Contractors License Proposed Language.

At this meeting they outlined the proposed language for the new classification. It states:

“Adopt Section 832.01

Non-Structural Remodel and Repair Contractor

(a) A non-structural remodel and repair contractor remodels and repairs existing structures built for the support, shelter, and enclosure of persons, animals, chattels, or movable property of any kind, requiring the use of at least two unrelated building trades or crafts, except as excluded in this section.

(b) This section does not apply to any work or operation on one undertaking or project by one or more contracts, the aggregate contract price which for labor, materials, and all other items is more than $15,000.

(c) This classification shall not include the following:

  (1) altering, adding, or moving any load-bearing portions of the existing structure, including footings, foundations, and weight-bearing member;

  (2) Work requiring specialized engineering knowledge and skill as set forth in Business and Professions Code Section 7056; and

  (3) Work performed pursuant to a C-11 Elevator (Section 832.11), C-16 Fire Protection (Section 832.16), C-21 Building Moving/Demolition (Section 832.21), C-22 Asbestos Abatement (Section 832.22), C-31 Construction Zone Traffic Control (Section 832.31), C-32 Parking and Highway Improvement, C-34 Pipeline (Section 832.34), C-42 Sanitation System (Section 832.42), C-51 Structural Steel (Section 832.51), and C-57 Well Drilling (Section 832.57) classifications.

(d) An examination waiver for this classification as a closely related classification pursuant to Business and Professions Code Section 7065.3 shall be considered only for licensees who hold the B-General Building classification pursuant to Section 7057 of the code.

(e) The C-1 Non-Structural Remodel and Repair classification shall be available upon development of a trade examination.”

There was talk at the meeting that the maximum contract limit of $15,000 should be raised. Potentially to match the Utah license classification that the C-1 emulates. I believe the current limit was set to match the upcoming license bond increase which will be $15,000 at the first of the year. And it seems they’ve dropped the 3-story limit that was in place in previous wording of the legislation.

Bottom line, this should have a huge beneficial impact on the construction industry. Stay tuned for more information.

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Starting a Construction Business

Starting a construction businessStarting a construction business isn’t easy by any means. There is a lot of planning and steps to take. I’m going to attempt to break it down to the basics.

First, what business entity to choose. If you choose a corporation or LLC you’ll want to file your articles of incorporation with the Secretary of State (SOS). This is a service I offer, but if you prefer to use an online company click here.

Next you’ll want to obtain a Federal Employer ID number. You can get this number from the IRS using their online system. It will provide you with the FEIN in just minutes.

You will need to apply for a business license in your city or county. Here is a page of helpful information regarding business licenses.

If you are going to use a fictitious business name (FBN) you’ll need to apply for it in your city or county. Generally, the same government office that issues business licenses will also handle the FBN filing.

Opening a business bank account. You’ll need a copy of the filed FBN statement with you when you open the bank account. Unless you are using your personal name as your business name, the bank will not open a business account for you unless you have the filed FBN statement.

After the SOS has issued your corporate number, you can then apply for your contractor’s license. I offer a full range of license application services. Whether you need me to complete all of your documents for you, or just a review of the documents you’ve prepared, I’ll be happy to assist you.

If you are applying for a sole owner (sole proprietor) license, you can apply for your contractor’s license at any time. If you use your personal name for the business name on your contractor’s license, you will not need to file a FBN with your city our county.

Here is something that many new corporations miss… the SOS will notify the Franchise Tax Board (FTB) when the corporate number is issued and you will need to file a tax return, even if no business was conducted or if the contractor’s license was never issued. I have heard from people who formed an S corporation, received their contractor’s license number, but never conducted any business. They did not file a return with the FTB and they failed to pay the corporate taxes when due. When they tried to renew their license they discovered that the corporation was suspended at the SOS by the FTB for overdue taxes and penalties. I highly recommend finding a reputable CPA to help you.

To break it down….

  • Choose your business entity type
  • Submit your articles of incorporation with the SOS (if you’re forming a corp)
  • Apply for an FEIN with the IRS
  • Open a business bank account
  • Apply for your contractor’s license

As I said at the top, this is a basic list of what you need to do to start a construction business. It’s obviously more involved than this, I just wanted to give you the basics to get you started.

As always, I’m available to answer any questions that you may have. Everybody’s situation is different and I’d be happy to help you navigate through this process. Feel free to email your questions to me at ContractorLicenseService at

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Contractors License Exam Study Materials

Spread the Word! The License Guru offers contractors license exam study materials at the lowest price available!

You won’t find a lower price for our complete license exam study materials anywhere! We have kits for every California construction trade!

Get yours Today!

Each kit is under $300 and includes:

  • Trade Exam study manualContractors Trade Manual with Discs
  • Law & Business study manual
  • Practice Tests on paper
  • Online Practice Exams for 6 Months
  • Math & Health/Safety Discs with most trades
  • Audio Lectures on CDs
  • Video Lectures on DVDs
  • UPS ground shipping. *Overnight shipping is available
  • 11 Downloadable forms and documents to help you with your contractors license
  • FREE license application review

Our contractor licensing exam prep courses are the best in the industry. We offer trade and law manuals filled with the knowledge needed to pass the State exam. Our practice exams are constantly updated to follow the most recent changes in the State exams. Our DVD and audio CD lectures feature construction experts who walk the you through the written manuals.

Get yours Today!

About our Trade Manuals

Each trade classification has a unique Trade Manual that reviews basic math and estimating formulas, Cal/OSHA regulations, and trade topics that are covered on the State exam.

General Knowledge

Each trade has a General Knowledge section that covers key topics specific to the trade that you’ll need to know to pass the State exam.

Review Questions

This section of the manual includes the “most difficult” questions with explanations. Each manual with a review questions section also has available a DVD or Audio CD that walks you through the questions.

Get yours Today!

If you would like more information about contractors license exam study materials, please feel free to contact us using the form below. We promise: No pressure sales! Only great customer service!

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Website Redesign

I just completed a website redesign!

Our new Home Page is more streamlined and includes direct links to our Complete Study Kits for the most popular contractors license classifications.

I also created a “Classifications” button on the main nav bar so that you can find the license classification you are looking for more easily.

Don’t forget… we offer the LOWEST price for study materials! Hands down! You will not find a lower price anywhere on the study material kits we sell! All of our study kits are under $300!

Spread the word! The License Guru offers the best study materials at the LOWEST prices!

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The CSLB AIU Vortex continues to spin. And it’s not a pretty sight!

I received an email from one of my readers today and wanted to share it with you. Our conversation went as follows.

cslb aiu vortexMy fiancé has been undergoing the investigation process with the AIU and it’s looking as though they are going to deny his application. His prior employer has cooperated fully with the investigator but they seem to only want w-2s, paycheck stubs, and so forth. I was wondering if you had any knowledge or experience with the appeal process. How long does it take and so forth? Also, can you recommend any lawyers that have experience with this process? If we plan to go that route.

I replied:

Yes, the joys of dealing with the CSLB and the AIU. Did they allow you to submit any other forms of experience verification?

In the last year, I haven’t heard of anyone going thru the appeal process. The CSLB says it can take 4-6 months. I don’t have a referral at the ready, but I can ask my contacts if they have an atty referral for the appeal process.

She replied:

Yes, they gave their basic cookie cutter letter stating that we could send in invoices and estimates and materials receipts and so forth. Once we sent that paperwork in, they contacted my fiancé’s prior employer and sent him a paper to fill out verifying work experience and pay. After all that, the investigator said that the information was not enough and that he needed verifiable documents such as w-2’s, pay check stubs, and time cards. I have reviewed the CSLB’s website and found proof that if the employer verifies then that should be enough but I’m not sure if they are just forcing these investigators only to ask for w-2’s. If it turns out that the application does get denied, we are definitely thinking of appealing. It has been a long process and it seems pointless to give up now. [Read more…]

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CSLB Qualifying Experience – Final Part

Conclusion to: CSLB Qualifying Experience – Final Part, I will be discussing the CSLB Qualifying Experience outline and process. Final Part

Below are a set of powerpoint slides that were shown at the recent Contractors State License Board Licensing Committee Meeting held at the CSLB office in Sacramento on October 21, 2013.

Along the way, I’ll add my advice and opinion where necessary. Click on the images to enlarge.

CSLB Qualifying Experience - Final Part

Slides #25-26

These slides are self explanatory. You should refrain from using words like; he, she, I, we, us, or your personal name. The experience should always begin with… Experience includes…. then list your daily trade duties performed in the field. Remember…. do NOT list administrative experience.

CSLB Qualifying Experience - Final PartSlides #27-28Slide #27 gives some stats of applications received, processed, rejected. I think these numbers are way too low and don’t encompass what exactly is taking place.Slide #28 states this application processing procedure ensuring that the applicant has the proper experience. Isn’t that what the test is for? Could anybody just walk in and take the exams without any trade experience? I say, let the exams be the lithmus test!After that the slide states that the application processing procedure benefits the applicant in both cost and time. This one blows me away! How is it benefitting the applicant in cost when the chance of their $300 application filing fee disappears? According to them, it happens to 34.2% of the applications every month. And that number doesn’t include the applications that were withdrawn or denied after it was sent to formal investigation.
CSLB Qualifying Experience - Final PartSlide #29States this process frees up enforcement division resources to pursue the most questionable applications. Again, who is determining what “most questionable” is and what is their criteria? The application that uses “he” or “she” in the experience outline? Then it goes on to state that it takes less time than a formal investigation… let’s see… it’s currently taking “non” formal investigations almost 2 months for the applicant to receive the reject letter, return the docs, and have them reviewed. Looks like a push to me. Either way, you’re going to be waiting 3-4 months before your application is even posted and an exam date issued. From there, you’re waiting another 3-4 weeks before you sit for your exams.

That concludes this series of posts “CSLB Qualifying Experience – Final Part” regarding the Contractors State License Board Licensing Committee meeting and powerpoint slide presentation. The bottom line is… have all of your ducks in a row before you submit your application. And I would recommend that you have me review your application and your work experience history first. Paying me $75 could save you $300 and months of heart ache.

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CSLB Undercover Sting

CSLB Undercover Sting Leaves Unlicensed Painters Feeling Blue

cslb undercover stingCould the CSLB be adding to the unlicensed activity taking place because of their new application processes?

CSLB Undercover Sting in Santa Monica Leaves Unlicensed Painters Feeling Blue

Multiple suspects hit with three different legal punches

SACRAMENTO — An apartment complex about one mile from the famous Santa Monica Pier served as the backdrop for an undercover sting operation conducted Thursday, September 26, 2013, by the Contractors State License Board’s (CSLB) Statewide Investigative Fraud Team) (SWIFT). The operation resulted in eight people receiving Notices to Appear (NTA) in court to answer a variety of misdemeanor charges. Seven of the eight gave bids for painting.

via CSLB Undercover Sting in Santa Monica Leaves Unlicensed Painters Feeling Blue.

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Contractors State License Board meeting, Sacramento, CA. 9/16/13

I attended the CSLB Board meeting today and here are a few note worthy items.

1) The CSLB is working with the Highway Patrol to educate some officers on contractors license law. It’s currently a pilot program, but if you are pulled over and have a truck full of construction materials, the officer may ask you for proof of a license. Just something to be aware of.

2) The CSLB conducted some trial stings where they approached contractors, or persons who looked like contractors, at SoCal area building supply stores. They approached these persons to get their contact information. Then they made appointments to have these persons come over to a sting house to give a quote. Several were caught, cited, and/or arrested.

The bottom line here…. the CSLB is cracking down on unlicensed activity in many ways that haven’t been seen or used before. I commend them on their efforts.

3) It was stated in today’s meeting that if you submit self employed experience and are afraid that if you provide documents that may suggest you are working illegally without a license…. no worries. They have said on the record that they will not pursue you administratively for working above the $500 limit. Their goal is to get people licensed.

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