This past year I wrote an article about the enactment of legislation which finally permitted contractors to be licensed as limited liability companies (“LLCs”) in California. Many states, including Arizona, Nevada, Oregon, Texas, Utah and Washington, already permit contractors to be licensed as LLCs. According to the California Contractors State License Board, while they are not currently processing LLC license applications, they will be ready to issue licenses to LLCs by the law’s January 1, 2012 deadline. Under the new law LLC’s will need:
- Surety Bond – $100,000. This is in addition to the current $12,500 license bond.
- Liability Insurance – $1 to $5 million depending on the number of individuals listed as personnel of record.
- Personnel of Record – Every individual who is an officer, member, responsible manager or director of the LLC must be listed as personnel of record.
- Qualifying Individual – LLC’s must be qualified by either a responsible managing employee (RME), responsible managing officer (RMO), responsible managing member or responsible managing manager.