Wolfden said:
What is the name of your state?What is the name of your state? California
I'm an existing CA Contractor wanting to Incorporate.
Will do S corp or LLC
Cannot find any specific text on CSLB website or literature about LLCs.
They have no website email for questions, and no phone options to speak with a representative.
HELP - Can a California Contractor be an LLC?
Or must I go the S corp route.
Thanks in advance for your help!
Wolfden
I've been down this road, going from sole prop to inc. Unfortunately, the answer is no to the LLC. Here is a direct quote from the CSLB web site:
49. To whom is a license issued?
A license may be issued to an individual, a partnership, a corporation, or a joint venture. The license belongs to the owner of an individual license, to the partnership, to the corporation as it is registered with the California Secretary of State, or to the combination of licensees who are party to the joint venture.
The CSLB does not issue licenses to Limited Liability Companies (LLC's).
I would suggest you enlist the help of a CPA to guide you. There are many important decisions to make, from your fiscal year end to percentage ownership (hint, you can keep your existing license number if you own at least 51% of the company), to fees you can anticipate for refiling your bond, minimum tax due to Ahnuld (state of CA) due 3 months after FYE, new resale number from State Board of Equalization, etc. I originally thought I could handle it on my own (after paying a company to inc for us) but it's a lot more difficult than you think. But it is worth it.
Here's a link to the CSLB site specifically for business type changes. Hope it helps and good luck.
http://198.187.128.12/california/lpext.dll/Infobase/7/13/9f?f=templates&fn=document-frame.htm&2.0#JD_tiich2ar13
