Full question:
I want some one who is a Individual owner (A/C contractor to license my Corporation (Plumbing contractor)so my corp. can do both. I need to understand what is meant by 7068.1 C under 7068. Qualifications. I don't want to give up 20% ownership in my company and he doesn't want to close his business. Can this be done? by using line (c) of 7068.1. What is meant by (the majority of the partners or officers are the same)? Could he then form a partnership with his business and become an officer of mine with out owning 20% of my company. His business is very small in comparison to mine.
- Category: Contractors
- Date:
- State: California
Answer:
In California, a qualifying agent for a contractor's license must own at least twenty percent of the company. However, under subsection (c) of Section 7068.1, a managing person from another company can act as the qualifying agent if they are also a principal in both companies. This means that if the individual is a managing partner of their own business and wants to qualify your corporation, they would typically need to have some ownership stake in your company.
Section 7068.1 states that the qualifying individual must exercise direct supervision and control over the construction operations of the company they represent. To qualify for more than one firm, one of the following conditions must be met:
- Common ownership of at least twenty percent of each firm.
- The additional firm is a subsidiary or joint venture.
- The majority of the partners or officers are the same.
In your case, if the individual does not want to give up twenty percent ownership and you want to avoid that as well, they could potentially form a partnership with their business and become an officer of your corporation, but they would still need to meet the requirements of being a principal in both entities. It's important to consult with a legal professional to explore the best options for your specific situation.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.