According to the California Contractors State License Board (CSLB), its Licensing division has processed about three dozen limited liability company (LLC) license applications; to date, five licenses have been issued. The LLC business classification became authorized to hold a California contractor license beginning January 1, 2012.
The causes for the high rejection rate, include two main reasons:
- Missing LLC registration number issued by the Secretary of State (SOS)
- Names and numbers of personnel listed are inconsistent with SOS records that are sent to CSLB. Do not submit your application until you have received an SOS registration number. CSLB cannot process the application until the information is identical to SOS records. Also, since the amount of liability insurance the LLC licensee must carry is determined by the number of officers, that information must be consistent.The Secretary of State indicates there can be up to a four-month backlog in the processing times for the Statement of Information (Form LLC-12); however, expedited processing is available for additional fees.The information provided above was supplied by the California Contractors State License Board.