faqs
frequently asked questions
QUESTIONS ASKED BY RMOs
WHAT IS DIRECT SUPERVISION AND CONTROL?
Section 7068.1 of the Business and Professions Code states: “direct supervision and control” includes any one or any combination of the following activities: supervising construction, managing construction activities by making technical and administrative decisions, checking jobs for proper workmanship, or direct supervision on construction job sites.
WHAT IS AN RMO?
An RMO (Responsible Managing Officer) is a licensed contractor who qualifies a corporation or LLC to hold a contractor’s license with the California Contractors State License Board (CSLB).
The RMO is legally responsible for overseeing and directing the construction operations of a licensed business.
Is the RMO process allowed under California law?
Yes, the RMO process is authorized and fully recognized under California law. Business and Professions Code sections 7065, 7068, and 7068.1 specifically allow a business entity to obtain a contractor’s license by designating a qualifying individual, such as a Responsible Managing Officer (RMO). This position ensures the company complies with state regulations by having a qualified person responsible for overseeing construction operations.
Is it required for an RMO to hold an active contractor license?
No, it is not required for an RMO to hold an active contractor license. An individual can serve as an RMO even if their personal contractor’s license is inactive or expired.
As an RMO, how many businesses can I qualify?
Under California law, an RMO (Responsible Managing Officer) may qualify up to three corporations simultaneously, but only with prior approval from the Contractors State License Board (CSLB).
What does holding 20% ownership involve for an RMO role?
It means the RMO has a documented, legal equity stake of at least 20% in the company. This level of ownership is required only if the RMO wants to qualify more than one license at the same time, as regulated by the CSLB.
The ownership must be verifiable—typically through stock certificates, operating agreements, or an RMO agreement—and the RMO must be actively involved in the construction operations of each business they qualify.
Is it possible to voluntarily end my role as an RMO at any time?
Yes, as an RMO, you have the right to voluntarily disassociate from a company at any time. It is important that the RMO agreement includes clear terms regarding termination or cancellation of the contract to protect both parties. Make sure these terms comply with applicable laws and are documented properly to ensure a smooth and legal disassociation process.
Is it required for the RMO to be an employee of my company?
No. Under California law and Contractors State License Board (CSLB) regulations, a Responsible Managing Officer (RMO) is not considered an employee of the company. An RMO holds an officer position within the business entity, which is legally distinct from that of an employee. To meet CSLB requirements and avoid employee classification or time commitment obligations, the RMO should hold at least a 20% ownership stake in the company.
QUESTIONS ASKED BY CLIENTS
Is it legal to perform contracting work without a contractor’s license in California?
No. it is not legal. It is considered a misdemeanor to perform contracting work without a valid contractor’s license in California. The only exemption currently allowed under Business and Professions Code Section 7048 applies to projects with a total cost (labor, materials, and all other expenses) under $1,000, as long as the work does not require a building permit and does not involve hiring any workers. Operating without a license can result in fines, penalties, and legal action.
Who is required to hold a contractor’s license in California?
In California, anyone who performs construction work valued at $1,000 or more, including labor and materials, must have a contractor’s license. This applies to individuals and businesses doing construction, repairs, or specialty trades.
Is an RMO required for every construction license in California?
Yes, every construction license in California is required to have a qualifying individual. In the case of a corporation or LLC, this person is typically an RMO (Responsible Managing Officer).
Can you get a Contractor’s License without taking the Trade and Law & Business Exams?
Yes, under California law, you can hold a contractor’s license and own a construction business without personally taking or passing the Law and Business exam or the trade exam. To do this, you must designate a Responsible Managing Officer (RMO) who meets the experience requirements. The RMO will serve as the qualifying individual for your license.
Can I qualify my own Contractor’s License?
Yes, you can act as the qualifier for your own company in California. According to the Contractors State License Board (CSLB), an individual owner, partner, or an officer of a corporation or limited liability company (LLC) may serve as the qualifying individual for their own business.
Can I add an additional classification to my contractor’s license without taking an exam?
Yes, You may add an additional classification to your contractor’s license without taking an exam if you meet specific requirements. We can match you with a qualified RMO in your desired trade to ensure the classification is added legally and efficiently.
Is it possible to change the name of my construction company?
Yes. You can legally change your construction company’s name by having it updated with both the California Secretary of State and the Contractors State License Board (CSLB) to keep your records accurate and compliant. This process is best handled with professional assistance to prevent delays and costly errors.
Can a contractor’s license be transferred to another party?
If the business structure, name, license number, and qualifier remain unchanged, ownership of a corporation or LLC can be transferred through a change in shares or membership interests. This must be done in compliance with state licensing board requirements and properly documented to maintain the license in good standing.
What is the process to start my own construction company?
At RMO Construction Agency Inc., we manage every step of establishing your construction business. We connect you with a Responsible Managing Officer (RMO) matched to your location and trade classification, handle all required state and government registrations, and oversee the entire licensing process from start to finish to ensure your contractor license is issued promptly and without delays.
How long does it usually take to get a contractor’s license?
After you’re matched with a qualified Responsible Managing Officer (RMO) and all necessary paperwork has been submitted, the licensing process typically takes about 3 to 4 months. Our team oversees and coordinates each stage to ensure the process moves forward efficiently and without delays.
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CONTACT:
- EMAIL US:
- RmoConstructionAgency@gmail.com
- CALL US:
- (323) 615-9566
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- Mon-Fri: 9AM-5PM
- Sat-Sun: Closed