Legal Question in Construction Law in California

Business Structure

Me and my partner are starting a general contracting business. I have formed a california corporation and plan to use that business structure for tax purposes. We plan on using his General B type lisence to conduct business and register me, the other partner with the CSLB as a 'salesperson' Is that lawful to establish business as a corp and list the guy with the B licensce as the RMO and the guy without as another one of the corporate officers.??


Asked on 9/04/08, 5:02 pm

2 Answers from Attorneys
EZRA FRUCHTER LAW OFFICES OF E. LEONARD FRUCHTER

Re: Business Structure

You can both be officers of the corporation. A corporation needs 3 officers: a president, a treasurer, and a secretary. A single individual can hold one, two, or all three positions. As an officer of the corporation, you would not need to be licensed as a "salesperson" Accordingly, I suggest that you divide the offices between you; a common division is that the license holder is designated "President" and the other partner is designated as "Secretary" and "Treasurer".

Best of luck

E. Leonard Feuchter

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Answered on 9/04/08, 5:20 pm
Terry A. Nelson Nelson & Lawless

Re: Business Structure

The corporation can use the contractor's license, and the officers other than the license holder do not have to be licensed. However, you'd better start getting some sound legal advice on how the organize and operate this business in compliance with all the rules and regs in order to keep you out of legal and financial trouble. Feel free to contact me if you are serious about doing so.

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Answered on 9/04/08, 6:35 pm


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