Business & LicensingQuestion 416 of 690
An individual holds a contractor license as a sole proprietor and decides to incorporate the business. Regarding the license, the individual must:
a.Simply mail a name change form to the CSLB
b.Transfer the existing sole proprietor license number to the corporation
c.File a new application, because the corporation is a separate legal entity
d.Do nothing, since the same person controls the business
Explanation
Under §7075, a contractor license is not transferable between entities. A corporation is a distinct legal entity from the sole proprietor, so the business must apply for a new license in the corporate name.
Law Reference: Bus. & Prof. Code §7075Practice all 690 questions free — no signup required.
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