This message is directed mainly to anyone contracting in California. I have been licensed as a General Contractor in California since 1989. My license status is inactive, and has been for the past several years. I have re-entered the construction arena, and am currently working as a self-employed “handyman”, charging hourly for any job over $500. I am looking into renewing my license, and would appreciate any caveats or suggestions from fellow Calif. contractors. I am planning on specializing in smaller remodels and repair work (ths same as I’m doing now, but without the cap on my bidding amount).
I am planning on registering my license under my own name (it was previously listed under a company name), and just filing a notice with the contractor’s board for any business name I might choose to use).
1. Is it possible, legal, and ethical to use more than one business name (to appeal to a different niche, i.e. “Home Repair Specialists”, and maybe also “Quality Remodels”)
2. Where did you get your bond?
3. How much does a $10,000 cost? (I have had no past problems).
4. What exactly does the bond do?
5. They tell me I’m exempt from worker’s comp, since I have no employees (when I had employees in the past, the policy didn’t cover me anyway).
6. What are your suggestions regarding liability insurance?
7. How do you go about filing a Mechanic’s Lien? (and any other info on liens, like when to file, which jobs, etc.)
Thanks for any suggestions!
Replies
Quite a question:
You can use any dba you want, so long as a license number is on your card, invoices, stationary, etc. Register dbas at the county recorder's office at your county. The cost is about $80
I got my bond out of the yellow pages. There are a number of bonding agents for the $10,000 bond, and you'll fill out a financial statement and pay a premium of about 5% or so. If a customer sues you, then the bonding company will pay that customer the $10,000 to satisfy the judgment. If there are a number of judgments and claims, the bonding company will file a lawsuit against you and the claimants and have the Court tell them who to pay up to the $10K
I do commercial work, so I need insurance. I think if I were you, I'd look into it.
Regards,
Boris
"Sir, I may be drunk, but you're crazy, and I'll be sober tomorrow" -- WC Fields, "Its a Gift" 1934
thanks for the bond explanation - I never questioned it before, just bought it because they said I had to. I was so anxious to get started back in '89, but I look at things a little differently now. Never liened a job before either, but I'm gonna make sure I know how now.
Back when I had my auctioneer license in CA, they had a bonding requirement. They let me put $10k in a CD and earn the interest rather than paying money to a third party bonding company. Check with the license board if they'll let you do that.
-- J.S.
thanks - if I ever get into a position to do that, it will be good to know.
Huck,
Go to the California state licence Board web site.
http://www.cslb.ca.gov/
Lot of current info regarding liens, notice to owners regarding thier rights, what size fonts you need to use in your contracts...etc. Very good stuff if you want to stay out of trouble here in California.
There is the "Preventing Mechannic's Liens" handbook. How to put together a contract handbook...etc...check it out.
Also, http://www.sba.gov has some interesting data.
Gotta go...
Thanks for the links, I'll check it out!