Looking to Make a Change to Your License? Here's Some Helpful Information

The 2019 Contractors License Law & Reference Book is an excellent resource for information about making any changes to your license. Also known as the CSLB law book, chapter two has answers to questions about common license modifications.

Here are a few tips to help guide you through chapter two.

(This information was taken from pages 36-37 of the CSLB law book. Please refer to the book for more detailed and in-depth information.)

Steps to Adding a Classification to Existing License

If your license status is current, you may fill out a separate "Application for Additional License Classification" for each classification you are requesting. Here are some informative steps to adding a classification:

Select a qualifier (who may also be the licensee) for the new classification you are applying for;
Have the qualifier describe in detail, four years of experience within the last ten years as a journeyperson, foreperson, supervisor, or contractor in the classification for which he or she is to serve as the qualifier;
Provide verification for the claimed experience;
Submit the required application and processing fee with the application;
Take and pass the trade examination for the new classification for which he or she is to serve as the qualifier;
File any required bonds; and
Inactivate the qualifier's license if they are an RME.

This information is available in further detail on page 36 of the CSLB law book.

Changes in Personnel

Changes in personnel can have an affect on a contractor license. Here is a list of what to do if there are personnel changes:

Sole Owner: A sole ownership license is not transferable. If a contracting business was purchased, the new owner must obtain their own license before operating the business legally.
Partner: If a general or qualifying partner leaves the business, the license must be cancelled. A license continuance request could be considered if requested within 90 days of the event that caused the license cancellation. The remaining partners must apply for a new license if they choose to remain in business.
Corporate Officers and Limited Liability Company (LLC) Personnel: If any officer or LLC personnel listed on a license were to leave, that must be reported to CSLB within 90 days using the "Disassociation Request." To add personnel, you must submit an "Application to Report New Officers of a Corporation" or "Application to Report New Officer of an LLC." Officers, members and managers listed on the records of California Secretary of State must match those individuals listed on the contractor's license, including their titles. To report current titles, you must submit an "Application to Report Change of Title for Current Officer or Personnel of Existing Corporate or Limited Liability Company License"
Qualifier (Responsible Managing Officer, Employee, Member, or Manager) Leaves: Notify CSLB within 90 days in writing with the following information:

Date of disassociation
Name of the qualifier who left
Name of the business
Contractor license number
Signature of disassociating individual or current member of license personnel

More detailed information on personnel changes can be found on pages 37-39 in the CSLB law book.

Changes in Business Name or Address

Report changes to business name or address as soon as possible, but no later than 90 days after the change. You can notify CSLB by submitting the Application to Change Business Name and/or Address." Please note the following:

The form must be signed by a current member of the license personnel: an owner, general partner, officer, member, or manager.
For corporate or LLC licenses, you must register the name change with the California Secretary of State.
The new business name must not conflict with the type of business entity or the classification held.
Corporate and LLC registered name changes will be confirmed with the California Secretary of State.

Changes in Business Type

CSLB licenses five types of business entities:

Sole Ownership
Partnership
Corporation
Joint Venture
Limited Liability Company (LLC)

Whenever the business type is changed, it's required to obtain a new license. If you were to change your business entity without obtaining a new license, your business would face all the legal risks of an unlicensed contractor.

For more information regarding changing your business entity, including a Q&A about license requirements, visit page 40 of the CSLB law book.

The 2019 edition of the California Contractors License Law & Reference Book is now available for purchase, or to view online for free. The cost of the 1,100-page book, which includes information you need to become a licensed contractor, maintain your existing license, and run a successful contracting business, is $36.00, plus tax and shipping. The book can only be purchased directly from the publisher.

Click here to purchase a copy of the book

Click here to view a copy of the book online