Tuesday, July 12, 2016

About California Contractor License Application Processing

By Lucy M. Anaya


If you wish to open a building and construction company you have to get a license for this unless the law exempts you for one reason or another. Thus, it is good to go through guidelines touching on licensure matters in order to determine your situation. California contractor license exam will be easier if you have all the facts.

Do not confuse a license and competence certificate. One cannot stand for the other. The first one is necessary for someone who wants to open a construction company even if he or she will not take part in its active management. The second one just shows that one has the necessary skills and knowledge to carry out construction and building projects.



In addition, you should select the legal status of the enterprise. It can either be a partnership, legal person or sole proprietorship. You can ask experts in the legal field the best entity to go for. Also accountants or notaries can help you out on this. However, make sure this decision is made after considering the objectives and needs of your firm. Anyone who does not enquire about this when advising you should just be dismissed.

Licenses have sub-classes and not just any will be fit for you. It has to be appropriate to the job you are doing. Additionally, the people you are planning to borrow money from in order to start the company and the stakeholders should not be criminals. Another thing is that they should have completed their jail term at least five years before if they had been convicted. Otherwise, the application will be declined. This is per the requirement of fiscal law.

Licenses have subclasses and the one given is determined by the kind of work you will be carrying out. Also, people who are conversant with company laws can inform you on which subclass you should apply for. Your lenders and officers should not have bad criminal records because this can lead to license denial. If the company has been formed under a partnership or it is a limited liability company, records of the shareholders and the officers have to be presented. None of these people should have been convicted in the previous five years. This makes the application process an offence according to criminal act or fiscal law.

When processing for contract license you need to submit a list of financial guarantors. This is in order to provide security for the license. Alternatively, you can get accredited through guarantee. In addition, there are several guarantee plans. Therefore, you need to go through them and select one which applies to your case.

The amount you need to pay as license security varies from one country to another. This can be paid through insurance companies, banking institution or credit unions. Also, you should review the act on license security to determine the acceptable ones. The accreditation certificate does not have to be attached to license application form. You will be called upon to submit it at a later date.

Without qualification, there is no need to apply for a contractor license because you will get none. Therefore, ensure you have performed well academically and have special knowledge as far as construction and building is concerned. The involved officers will assess the management of the site, safety and project and also administration capabilities.




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