Business & LicensingQuestion 677 of 1605
When a sole proprietor licensed contractor incorporates the business and wants the new corporation to hold the license:
a.The corporation can simply use the sole proprietor's existing license number after filing articles of incorporation
b.The corporation must wait 12 months after incorporation before applying
c.The corporation must file a NEW license application as a separate legal entity under Bus. & Prof. Code §7065, including its own bond, qualifier, and workers' compensation certificate; the sole-proprietor license cannot be assigned to the corporation under §7075.1
d.The CSLB will automatically transfer the license upon receiving the new EIN
Explanation
Bus. & Prof. Code §7075.1 expressly prohibits the transfer or assignment of a contractor's license between separate legal entities. When a sole proprietor incorporates, the corporation is a new legal person and must file its own application under §7065, post its own $25,000 contractor bond (and BQI if applicable), and provide its own workers' comp certificate. The sole proprietor may continue to qualify the corporation as RMO without re-examination (under §7065.1's waiver if the same qualifier is used within the prior five years). There is no 12-month waiting period; automatic transfer is not permitted.
Law Reference: Bus. & Prof. Code §7065Practice all 1605 questions free — no signup required.
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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)