Business & LicensingQuestion 442 of 1605
A contractor wants to keep a license on file but does not intend to contract for a period of time. The contractor may:
a.Place the license on inactive status, which suspends the right to contract but keeps the license on record
b.Simply stop renewing the license with no consequences
c.Transfer the license to a friend until business resumes
d.Keep contracting because inactive licenses still allow work
Explanation
A licensee may request inactive status to retain the license without maintaining a bond or contracting. An inactive license does not authorize the holder to engage in contracting until it is reactivated to active status.
Law Reference: Bus. & Prof. Code §7141Practice all 1605 questions free — no signup required.
Related questions on this topic
- A person engages in the business of contracting on a project requiring a license without holding any contractor license. Under California law, this is:
- A licensed contractor allows the $25,000 contractor license bond to lapse because the bond premium was not paid. The effect on the license is that:
- A specialty (Class C) contractor takes on a project. Which statement best describes the proper scope of work for that contractor?
- A prime contractor planning a large remodel wants the simplest reliable way to confirm a prospective subcontractor is properly licensed and in good standing. The best method is to:
- A specialty contractor wants to use the word 'general' in its company name and advertising, even though it does not hold a Class A or Class B license. Under California law, this is:
- When CSLB enforcement representatives have probable cause to believe an unlicensed person is acting as a contractor, they may:
Last reviewed: · editorial process
Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)