To change a sole ownership license to a corporate license, the contractor must:

To change a sole ownership license to a corporate license, the contractor must:

• A. apply for a new license with an exam waiver after incorporating
• B. transfer the license to the corporate entity
• C. obtain a corporate license by adding officers on the existing license
• D. do nothing; no license change needed

Answer: (A)

When a sole proprietor wants to operate as a corporation, you must establish the corporate entity and obtain a license in the corporate name. Licenses aren’t simply transferred from an individual to a business entity. After you incorporate, you apply for a new corporate license, and you may qualify for an exam waiver under CSLB rules if you meet the criteria for already holding a valid license or otherwise qualifying for a waiver. The corporate license also requires designating a Responsible Managing Officer who meets the experience and qualification standards. Transferring the existing license to the corporate name isn’t allowed, and simply adding officers to the current license does not create a corporate license. Doing nothing isn’t an option when you’re converting to operate as a corporation; you must obtain the appropriate corporate license to legally perform work under the corporate entity.

When a sole proprietor wants to operate as a corporation, you must establish the corporate entity and obtain a license in the corporate name. Licenses aren’t simply transferred from an individual to a business entity. After you incorporate, you apply for a new corporate license, and you may qualify for an exam waiver under CSLB rules if you meet the criteria for already holding a valid license or otherwise qualifying for a waiver. The corporate license also requires designating a Responsible Managing Officer who meets the experience and qualification standards.

Transferring the existing license to the corporate name isn’t allowed, and simply adding officers to the current license does not create a corporate license. Doing nothing isn’t an option when you’re converting to operate as a corporation; you must obtain the appropriate corporate license to legally perform work under the corporate entity.