How to Get a California Contractors License Part 5

IN THIS SERIES OF POSTS, I’LL TELL YOU HOW TO GET A CALIFORNIA CONTRACTORS LICENSE. HERE IS PART 5.

Now lets discuss different titles or positions and business entities:

RME or RMO Contractors21) What is the difference between an RMO and RME?

RMO or Responsible Managing Officer is the qualifier for the license and may or may not hold any ownership in the company. An RME or Responsible Managing Employee is the qualifier for the license and may not hold any ownership in the company.

22) Can an RMO be a qualifier on more than one License?

Yes. An RMO can be the qualifier on up to 3 corporate licenses as long as he or she holds at least 20% ownership in each company. The CSLB has passed a new law giving them more enforcement power over qualifiers who qualify more than one license. Those qualifiers need to have an active role in all projects done under the licenses for which they qualify. If enforcement action is taken against a qualifier on any one license, it will have a negative effect on every other license that he or she qualifies.

23) Can an RME be a qualifier on more than one License?

No. An RME can only qualify one license at a time. He or she may have a Sole Owner license but it must be inactive while the person is acting as an RME. By law, an RME must work a minimum of 32 hours a week.

24) Can an individual have more than one license?

Yes. An individual can have as many as 10 Sole Ownership licenses.

25) Can a Sole Owner also be an RMO or Qualifier on another License?

Yes. An individual can be an RMO on another license as long as he or she holds at least 20% ownership or more of the company. As I stated in #22, if you are going to qualify three licenses at the same time, be careful not to spread yourself too thin as you will be required to have an active participation in all projects done under all licenses you qualify.

The finale, Part 6, coming soon!

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Start a Construction Business

Below are some tips on how you can Start a Construction Business from the Governor’s Office of Business and Economic Development.

It’s a beginning point to get you started with some basic information. In bullet point number 8 is a link to CalGOLD. Enter your type of business (construction) into the database and it will provide you with a list of agencies that you should or will have to contact before you start your business. I’ve used CalGOLD myself and found it extremely helpful.

Start a business

The Governor’s Office of Business and Economic Development offers you many resources when starting a business in California. Whether you’re interested in a basic checklist of steps to start your own small business, or finding out about various statewide and local incentives to relocating your established business to California, we’d like to help. If you’d like one-on-one assistance, contact one of our business specialists by clicking the below. Our partners at the California Small Business Development Centers are also ready with regional expertise to assist you in becoming a successful business owner, with low cost business training and free business mentoring. If you’d like to find your local SBDC, click the link below. Starting a business involves making many key decisions, both financially and legally. This guide provides the information to help you plan, prepare and operate your business.

1. Researching and Planning

To increase your chance for success, take the time up front to explore and evaluate your business and personal goals. Then use this information to build a comprehensive and well thought-out business plan that will help you reach these goals. The process of developing a business plan will help you think through some important issues that you may not have considered yet. Your plan will become a valuable tool as you set out to raise money for your business. It should also provide milestones to gauge your success.

2. Getting Business Assistance & Training

Take advantage of the several free counseling and training programs are available to assist you in starting your business. From low cost business training and free mentoring, selling to government, finding access to capital and expanding your business internationally, these partners can help get you started.

3. Choosing a Location

It’s important to consider several factors when deciding on the location of your business. For the most part, the ideal location for your business will be dependent on what kind of business you run. Ease of access, proximity to competitors, zoning and signage regulations are all things to keep in mind. Get advice about choosing your best location and complying with zoning laws.

4. Financing Your Business

Every business needs capital at some point to start up or expand. Typically, this comes from savings, home equity, or friends and family. The next most frequent source of funding is to look for some kind of business loan. Find federal, state and local governments financing programs to help you start and grow your operation.

5. Choosing a Business Structure

When beginning a business, you must decide which form of business entity to establish. Your form of business determines the amount of paperwork you have to file, your personal liability regarding investments into your business, and the taxes you have to pay.

6. Choosing a Fictitious Business Name

A fictitious business name statement is required if the company name is different than your own. Fictitious business name statements are obtained through your local county Clerk Recorder office, you can find the list of county contacts and FBN applications here.

7. Registering for Taxes

Register with the state of California and the federal government for a Federal Employer Identification Number, and find out about corporate, payroll, income, and sales tax, as well as learn more about different tax assistance programs for small businesses.

8. Registering for Permits

The business activity type chosen largely determines the licenses and permits needed to operate a business legally. Keep in mind, business licenses are obtained through your local city and business entity registration is through the California Secretary of State. Find out about other permits and licenses you may need by using CalGOLD, a database that provides you with links and contact information for permitting and licensing agencies.

9. Employer FAQs

Learn the legal steps you need to take to hire new employees. There are specific federal, state and local requirements regarding equal opportunity employment, employee safety and health protection, taxes and insurance – find out more with these resources.

I would be happy to answer any questions you may have about how to start a construction business in California. I can also assist you with corporate formations, and of course, help you in obtaining your California Contractors License.

Click on the link below to read more from the above article.

via Start a Business.

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How to Start a Construction Business

How to Start a Small Construction or General Contracting Business

by Caron_Beesley, Community  Updated: March 5, 2012

Below is an article I found about how to start a construction business. There are many great links to information on the Small Business Administration’s (SBA) website. I can also provide you with guidance, information, and tools to help you start your construction business. On my services offered page, we include corporation formation, bonding and insurance services, and of course, license application services.

Interested in getting into the construction business? Now might be the time, with market forecasts courtesy of IBISWorld predicting a steady rise in the value of the construction industry over the next five years – 12.5 percent annually for residential construction and 13 percent for private non-residential construction.

If you’re interested in starting a construction, home improvement, or contracting business, here are some business and regulatory basics you need to be aware of.

how to start a construction business10 Steps to Starting any Business

Start by familiarizing yourself with the basic steps involved in planning and forming any kind of business, including planning your business strategy, incorporating and registering with the right government agencies. Read these essential 10 Steps to Starting a Business from SBA.gov.

Get Licensed, Bonded, and Insured

Protect yourself, your business and your clients by ensuring you have the right licenses and permits, business insurance, and surety bonds. Here are three reasons why and information on how to obtain them:

1) Business Licenses and Permits – In addition to a general business license, most construction or contracting businesses need specific licenses to operate legally. For example, a tradesman license is required for electrical, plumbing, HVAC, gas fitting, and other construction trades.

Use this handy SBA.gov search tool – “Permit Me” – to identify the exact license and permits you’ll need. Just enter your zip code and business type. Local government websites also list this information and can guide you through what you’ll need.

2) Surety Bonds – A surety bond is not something many business owners think about, but in almost all cases, construction businesses need construction bonds in order to operate legally. You arrange for a surety bond from a third party who promises to pay your client if you do not fulfill your work obligations under a contract. Bond regulations vary by state, so research your state’s requirements or speak to a reputable surety bond agent. If you are unable to secure a bond through a commercial channel, SBA offers its own Surety Bond Guarantee program that can help.

3) Insurance – Depending on the nature of your work and whether you employ workers directly, you will need several types of business insurance. Consider getting general liability insurance as well as vehicle and property insurance. This will protect you against claims for personal injury and property damage, and cover the costs of legal proceedings. Individual states also require businesses to carry specific insurance, such as workers’ compensation insurance, unemployment and state disability insurance. Read this article for more information on business insurance: Business Liability Insurance – Tips for Protecting your Assets with the Right Coverage.

Remember: jobsites won’t do business with you unless you can prove you have the right coverage.

Familiarize Yourself with Construction Industry Regulations

From energy efficiency standards to workplace safety regulations, the construction industry is heavily regulated. Read SBA.gov’s Construction Industry Guide, which compiles everything you need to know in one place.

Develop an Occupational Health and Safety Plan

The Occupational Safety and Health Act (OSHA) requires that construction workers are provided a safe workplace free from recognized hazards. Fortunately, the OSHA.gov website offers a variety of tools and services that can help you comply and develop a safe workplace. These include on-site consultations, training, and more. Read more in SBA’s Workplace Safety and Health guide. Check out these quick reference resources, too:

Finding and Hiring Labor

The construction industry generally secures labor from four sources – subcontractors, hired employees, labor brokers, or independent contractors. Of course, the law differs in how you work with each of these. For example, when hiring employees, you’ll take on additional obligations such as withholding taxes, paying wages, benefits, complying with employment law, and so on. To get you started read, 10 Steps to Hiring your First Employee on SBA.gov.

While there are no specific laws governing how you work with subcontractors, you may wish to draw up a contractual agreement and ensure that they, too, are licensed, bonded, and insured.

If you engage a broker to find labor, you will pay the broker directly. If you hire independent contractors (self-employed individuals), you will pay them directly but, unlike employees, you are not responsible for paying benefits or withholding taxes. There are strict tax reporting requirements for working with independent contractors. Read about them here.

via How to Start a Small Construction or General Contracting Business | SBA.gov.

Here is an additional and updated article that you may find helpful: https://www.cleverism.com/employment-law-guide/

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