Business & LicensingQuestion 1433 of 1605
A sole proprietor licensee incorporates the business. Can the new corporation keep operating under the sole proprietor's license number without action?
a.Yes, automatically
b.No; the corporation is a separate legal entity and must obtain its own license, though the number may be reissued under section 7075.1 conditions
c.Yes, for one year
d.No; the business must close
Explanation
Under B&P Code section 7075.1, a corporation is a distinct legal person and must be separately licensed. However, where continuity of ownership exists, the Registrar may reissue the original license number to the successor corporation if conditions are met.
Law Reference: B&P Code §7075.1Practice all 1605 questions free — no signup required.
Related questions on this topic
- The contractor's license bond and the bond of qualifying individual are two separate bonds. When is the bond of qualifying individual required?
- An RMO who owns 15% of the licensed corporation qualifies its license. Is a bond of qualifying individual required?
- A licensee changes the business name style (for example, from 'ABC Builders' to 'ABC Construction Inc.'). What is generally required?
- Claims against the $25,000 contractor's license bond are generally handled how when total claims exceed the bond amount?
- Departing from accepted trade standards for good and workmanlike construction, as a willful violation, can lead to what?
- Willful or deliberate disregard of state or local building laws by a licensee is what?
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)