Existing License Number
- Fees to reissue your existing sole owner license number are the same as applying for a new license.
- Reissuing your existing personal number to a new corporation will guarantee the company an appearance of being older, more reliable and more established.
- No waiting for a new number.
- Existing insurance can be transferred. The license number remains the same.
- To reissue a license, initially the licensee must control 51% of the stock.
New License Number
- The history of your existing license number will not pass on to the corporation.
- You may end up with a limited equity in the corporation, so why give up your license number. Apply for a new one.
- You may wish to keep your existing (older) number to fall back on.
- You have an established business and expect to keep it separated from the corporation.
- A new number is a fresh start. Associates will recognize it.
TIPS ON INCORPORATING A LICENSE
The corporation will be DOMESTIC or FOREIGN (registered in California or out of state). A corporation with a foreign registration must be registered in California with the Secretary of State; otherwise a license will not be issued.
A Limited Liability Company (LLC) The Registrar of Contractors will not issue a contractor’s license to the company unless a bond in the amount of $100,000.00 is posted effective 01/2012.
A corporation license can be sold. The license number can be reassigned. Personnel may be added and deleted. Officers of the license can replace the qualifier in the event of a disassociation or death. The license number will always belong to the corporation.
After five years, the actively listed members of the license may be eligible for a waiver of the examination. When the corporation is sold or reassigned, the license number, upon the approval of the Registrar, will be reassigned to the new corporate officers.
BUYING/SELLING A CORPORATION
With regards to the ownership of a corporation contractor’s license number, there are basically two options to consider:
WITH AN ASSET SALE the buyer will be required to have a contractor’s license number; if not, the seller, in an effort to facilitate the sale, may choose to qualify the buyer for an original (new) license number. The amount of time to qualify the license to be determined.
ARTICLES OF INCORPORATION SALE When selling the Articles of Incorporation, the existing state contractor’s license number becomes the property of the buyer. If the buyer is not qualified, in order to expedite the sale, the seller may choose to qualify the buyer until a disassociation is agreed upon.