Business & LicensingQuestion 452 of 1632

Why does the CSLB require each separate business entity to hold its own license rather than allowing one license to cover several businesses?

a.Because the licence names the responsible legal entity and its qualifier
b.To raise the number of licensing examinations the board administers yearly
c.Because federal law forbids two businesses from sharing one licence
d.To charge the larger companies a higher renewal fee each cycle

Explanation

§7065(b)(1) issues licences to individual owners, partnerships, corporations, limited liability companies and participating tribes, and §7065(b)(1)(A)-(B) requires every officer, member, responsible manager, director or partner to be listed as personnel of record; §7068(b) then attaches a qualifying individual to that entity. One licence per entity is what lets the record answer the only question a homeowner or a claimant really has: which legal person is responsible for this work, and who qualifies it. §7075.1(a) completes the logic by making the licence untransferable, so the answer cannot be moved from one business to another. (b) and (d) treat the rule as workload or revenue, which no section supports, and (c) invents a federal rule where contractor licensing is entirely state law.

Law Reference: Bus. & Prof. Code §7065(b)-(c); §7068(b); §7075.1(a)

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