Over the past several months I have been providing updates about the California Contractors State License Board’s (“CSLB”) implementation of legislation enacted in 2010 which finally permits contractors to be licensed as limited liability companies (“LLCs”) in California. The legislation requires that the CSLB begin processing LLC licenses beginning January 1, 2012.
According to a press release issued today from the CSLB, the CSLB issued its first LLC license on January 19, 2012, and it has currently received 36 license applications from LLCs. However, the CSLB notes that it has had to reject a number of license applications from LLCs, the most common reasons being that the license application does not include the LLC registration number from the California Secretary of State, and the personnel listed on the application do not match the information from the Secretary of State:
A common reason for rejection is the missing LLC registration number, which is issued by the California Secretary of State’s office (SOS). That number must be included on page one of the application. Companies should not submit the LLC application to CSLB until the sOs number has been issued.
Another common problem is that the personnel listed on the application do not match those reported by SOS. The same names and number of personnel listed on the application must match all of the personnel information provided to CSLB by SOS.
The CSLB also notes that because there is currently a four-month delay at the Secretary of State in processing Statement of Information forms, and the information contained in the Statement of Information forms must match the personnel information contained in the license applications filed with the CSLB, that LLC’s should expect a four-month delay at CSLB in processing their license applications, unless they pay for expedited processing at the Secretary of State.