Business & LicensingQuestion 1384 of 1632

The sole owner of a licensed sole proprietorship forms a new corporation and wants to keep the license number. What does the license law allow?

a.Nothing at all, because the number dies with the proprietorship
b.Reissuance, if the owner keeps more than 50 percent of the voting power
c.Automatic transfer as soon as the corporation registers with the state
d.Transfer by sale, since the license number is the owner's property

Explanation

B&P §7075.1(a) makes a license non-transferable, but §7075.1(c)(5) lets the Registrar reissue the number to a corporation or LLC formed by an individual licensee where that licensee keeps ownership, directly or indirectly, of more than 50 percent of the voting power. (a) misses that subdivision entirely. (c) skips the CSLB: registering with the Secretary of State creates the entity, it does not license it, and the new corporation must apply and requalify. (d) is the sale-of-a-license myth §7075.1(a) exists to kill — a number may be reissued on statutory conditions, never bought.

Law Reference: B&P Code §7075.1(a) / §7075.1(c)(5)

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