Thousand Oaks, CA asked in Construction Law and Business Law for California

Q: If you buy a construction company in California do you get their license as well?

If you buy a construction company in California do you get their license and does the owner that holds the license need to stay on board? If the license holder, quits, is fired or for any other reason leaves the company would the license stay with the new owner?

Thank you!

2 Lawyer Answers
Adam Stoddard
Adam Stoddard
  • Construction Law Lawyer
  • Santa Clara, CA
  • Licensed in California

A: A company cannot get a contractor's license, at least to my knowledge. An individual can obtain a contractor's license, then setup a company (sole proprietorship, LLC, corporation, etc.) and then that company can contract under that individuals license. Thus, if you were to buy a construction company, you will still need someone in the company to hold a contractor's license. If the individual that had a license left the company, then you need someone else to get a contractor's license so the company can continue to do work.

James L. Arrasmith
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
  • Sacramento, CA
  • Licensed in California

A: In California, a contractor's license is not transferable, and a new owner of a construction company must obtain their own license through the Contractors State License Board (CSLB). The existing license holder will need to remain with the company until the new owner obtains their own license. Once the new owner has obtained their own license, the previous license holder can leave the company. It is important to note that there are certain requirements that must be met in order to obtain a contractor's license in California, including passing a qualifying exam and meeting certain experience and education requirements.

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