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The $100,000 LLC bond is required for all contractors in California with a business entity registered as an LLC (Limited Liability Company). In 2010, Senate Bill 392 authorized the Contractors State License Board to issue licenses to LLC's, which were not obtainable prior to this time.
Second, California law provides that no contractor's license is transferable. [Business & Professions code section 7075.1, subsection (a)]. By that it means licensees may not freely transfer, sell or assign their licenses to someone else without approval by the California State License Board.
The catch is that in most cases contracting licenses don't transfer from one state to another. If you want to work in a state that has a reciprocity agreement with your own, your options for landing the job are better.
California does not accept contractor licenses from other states. To perform services, you must be licensed in California. However, if you have a contractor license in Nevada, Utah or Arizona it is possible, you can get a California contractor license without taking a trade portion of the exam.
You have to meet a certain set of requirements to take the California state contractors license exam. You can find specific requirements on our website, but generally speaking you'll need four years of experience in the construction industry or a lesser amount of experience with a college degree.
Forming an LLC or corporation to operate your construction company is generally a wise decision, because it protects your personal assets from business liabilities. Your income taxes may also be minimized if you opt for your LLC or corporation to be taxed under Subchapter S of the Internal Revenue Code.
Forming an LLC or corporation to operate your construction company is generally a wise decision, because it protects your personal assets from business liabilities.
LLC is short for Limited Liability Company. It's a type of legal business entity that was developed to provide business owners with a lower level of liability. According to the IRS, LLC owners face significantly lower caps on company actions and debts.
The construction companies are divided into different types depending upon the type of job the companies perform. The role in the construction such as acquisition of land, design, financial planning, execution, operating, maintaining and paper works denotes the construction company type.
A Limited Liability Company, or LLC, is not a corporation, although it offers many of the same advantages. An LLC is best described as a combination of a corporation and a partnership. LCS offer the limited liability of a corporation, while allowing more flexibility in managing the business and organization.
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