frequently asked questions
What is an RME or RMO?
A Responsible Managing Employee (RME) or Responsible Managing Officer (RMO) is an individual who proved their experience to the Board for the sake of the company they are qualifying. As qualified individuals, they do not own the licenses they are qualifying. It is possible for the owners, partners or officers to replace them without interrupting the license status. Note the title of officer for RMOs. They can only qualify corporations or LLCs with ownership going anywhere from 0% to 100%. RMEs on the other hand can qualify all types of entities but are listed employees who require payroll and the company has to file a workers compensation policy on the license.
Aiding and Abetting? Can I loan / rent my license? Do I need to change my business name? Can I give my license to the company that hired me?
If you don’t change your license to match the entity you are working under and continue to use the same license number, this is aiding and abetting and is subject to citation by the Contractors Board. (B&P Code §7114) A lot of contractors think that once you have registered your corporation or LLC with the Secretary of State with a name that matches your sole ownership, you can then continue using the same license. Or perhaps a contractor who has a sole ownership license starts working for an unlicensed corporation, LLC or partnership and gives away his license number to the company to use without filing the necessary application. This is illegal! Reduce your liability and make sure you abide by the law. Pleading ignorance with the Board does not waive the disciplinary actions they would take.
What are the requirements to get a license?
Before you can take the test, you need to show four (4) years of work experience within the last ten, or five (5) years under specific circumstances for a waiver, and you need to show documentation proof of it. It's not enough to have other people in the industry sign your work experience certificates. After proving your work experience, then you either pass the test or get the exams waived. The CSLB will then mail you fingerprint forms and ask you to post a Contractor's Bond, Bond of Qualifying Individual if needed, and a Workers Compensation policy or exemption.
Do I need to get fingerprinted? I already have a license.
The Contractors Board only started fingerprinting in 2005. Depending on when you got licensed, you may not have been required to get fingerprinted at the time. If so, you will be required to get one on a new application. Note that when you let a license expire, the DOJ will sometimes tell the Contractors Board to delete fingerprints so you may still be required to get one in the future. Renewals do not require fingerprinting.
I had a license before. Can I get it back?
The Contractors Board allows you to pay a delinquent fee to renew your license if it expired within five (5) years. After that, you will be required to submit a full application and take the Law and Trade tests again.
I kept my license inactive. Is that ok?
Yes! As long as it's actually inactive and not expired. A lot of contractors get confused between the two. If you keep renewing your license every four years and have been paying your state fees, this means you've kept your license inactive. If you've completely let it go, most likely the license is expired. An inactive license can then be reactivated at any time after submitting the right fee and reactivation form. You don't need a Contractor's Bond on an inactive license, but will need to get a new one when you reactivate it.
Is it a good idea to be a corporation?
Many of our clients start out as a sole ownership. As your business grows, it’s a good idea to incorporate to protect your personal assets. You can choose to keep your existing license number and transfer it to the corporation entity, or issue a new one for the corporation and keep the original license personally. Either option depends on your circumstances. Give us a call so we can discuss which way's the right one for you.
I lost my contractors license pocket card! How do I get another one?
Unfortunately, it’s not as easy as ordering one online or over the phone. You have to submit a signed order form along with a check for $25 per copy - you can order as many as you want - and mail that to the Board. Contact us for a free order form!
Can I get a Contractors License if I have been convicted of a felony or misdemeanor?
Yes, it is usually possible, but the Contractors Board will consider how severe and how recent the charges were when making a decision. Although the Board no longer requires applicants to disclose their criminal history on the initial application as of 07/01/2020, the Board still requires fingerprinting and will still ask for additional information on any incidents they find significant and it must be explained properly. We have been successful at obtaining Contractors Licenses for clients with significant felony convictions and long prison sentences. In one case, we were able to smooth things over with the Contractors Board for a client who was arrested during the application process.
Can I file my contractors license renewal online?
You can file your renewal payment online, but only companies with only one qualifier (sole owners without RMEs / companies with only one RME/RMO) are able to completely file the form online and have their renewal processed immediately. Other entities with more than one qualifier still have to mail in the renewal paper form with the required signatures along with the payment receipt and go through regular processing times.
Do I need to disclose my prior charges?
The Board changed their application forms on 07/01/2020 so you no longer need to disclose if you’ve ever had any misdemeanors or felonies BUT fingerprinting is still required. If the Board sees any prior charges they want more information on, they will request for additional info from you near the end of the application process. Usually, they just want to know the context/background story of the charge since they’ll receive your RAP sheet back from the DOJ and FBI. For example, if they see a charge for assault, they would want to know if it was a bar fight or something more.
We are doing an F Reorganization and selling the corporation. Do we need to make changes to the license?
Yes! We understand the nature of an F reorganization, but the license was originally issued to the corporation entity and once the corp has been converted to an LLC, the license will be outdated and the Contractors Board will cancel it. The Board does allow transferring the same license number from the corp to the LLC but specific requirements have to be met. Because this is a complex application, please call us for more information at (800) 580-8129.