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Question for you CA builders

ChuckKiser | Posted in General Discussion on December 5, 2006 01:55am

My business partner and I have an opportunity to develop two small properties in southern cal. A total of 9 homes max between both parcels. Of the many questions I have, the one that will drive the project timing is the issue of contractor licensing. I am not licensed GC in California. If we do develop these properties and act as our own GC within a established LLC do I need to be a licensed GC. Four of the homes will be residences for members of the LLC, the other five will be sold to offset the costs of development. Thanks for any information you may have to offer.

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  1. andybuildz | Dec 05, 2006 02:03am | #1

    Just curious...where in California?

     

    I have dreamt of an open world, borderless and wide... where the people move from place to place, and nobody's taking sides.. http://www.yusufislam.com

    http://WWW.CLIFFORDRENOVATIONS.COM                                   

     
    1. ChuckKiser | Dec 05, 2006 03:17am | #3

      Andy,One property is in San Diego, close to the University. The other one is in Spring Valley.

    2. woodway | Dec 05, 2006 06:25am | #8

      Easy there when you speak about California!

      1. andybuildz | Dec 05, 2006 06:33am | #9

        Easy there when you speak about California!<<<<<<<<Wahhhhh, huh? WhadidIsay? I almost moved there before I bought this house.
        I put a bid in on some land in Sebastopol but they never accepted it and about two years later they ended up selling it for a little more than I offered. They woulda made more money had they taken my offer and had the money sitting in the bank collecting interest for two years.
        I'm still thinking about moving there if we deciede to sell this crib. Been looking on line at Sebastopol and Healdsberg a lot. My daughters parents have an incredable piece in Healdsberg (40 acres!!) so we'd be close to family....but I'm kinda getting attached to this house (that wasn't part of the plan)
        "Life's what happens to you while you're busy making other plans"
        John LennonBe well
        Namaste'
        avi yama dass : )~ 

        I have dreamt of an open world, borderless and wide... where the people move from place to place, and nobody's taking sides.. http://www.yusufislam.com

        http://WWW.CLIFFORDRENOVATIONS.COM                                   

         

        1. woodway | Dec 05, 2006 06:59am | #12

          In the last three days, the skies have been almost completely void of clouds, little wind with temps in mid 60's by late afternoon. The nights are a wee bit too cold for me though, last night it really got down to a bone chilling 38 degrees outside. Imagine that! I saw snow on the TV tonight for the first time this year and they're expecting ski season to start for real, very soon. Like, WOW!

        2. User avater
          zak | Dec 05, 2006 08:17am | #13

          Healdsburg is a beautiful place.  I've got good friends up there, it's just about an hour from the bay area, and the weather is warmer and drier.  It's frighteningly expensive, but I'd imagine you're used to that, being on long island.

          They've got great wine and cheese around there, but I know I'm wasting my breath telling you that.

          Cheers,zak

          "When we build, let us think that we build forever.  Let it not be for present delight nor for present use alone." --John Ruskin

          "so it goes"

           

  2. davidmeiland | Dec 05, 2006 02:14am | #2

    I don't believe the CSLB will issue a contractor's license to a LLC. They will issue a license to a corp.

    1. ChuckKiser | Dec 05, 2006 03:22am | #4

      David,Interesting about the LLC vs. Corp and a GC license. I never would have figured that. I do have my current corp. structure for my Chicago biz so I guess I can get licensed thru that corp. Any website you can direct me to that would give additional info? Thanks.

      1. davidmeiland | Dec 05, 2006 05:06am | #6

        I think it's cslb.ca.gov.

        Hey, I have a CA license, maybe I should partner up with you guys!

        1. 1Dude | Dec 05, 2006 06:16am | #7

          You can build one house per person as owner builder.  You must live in it for 12 months before you sell it.  As for the house you wanna build to sell, no you cant do that.  You have to be a builder to build and sell. 

        2. peteshlagor | Dec 05, 2006 03:56pm | #14

          How long does a builder have to stand behind his construction in California?

           

          1. migraine | Dec 05, 2006 07:17pm | #15

            For most stuff, 10 years

  3. savvy | Dec 05, 2006 04:09am | #5

    To my knowledge, in Ca. you can "owner-builder" your own home,however if you are building homes for sale you must be licensed.Also a corperation may do business as a licensed GC, one of the owners(or general partners)must be a licensed GC.He is considered the responsible managing partner.I suspect it is similar for LLCs.

  4. woodway | Dec 05, 2006 06:35am | #10

    Before you jump into this one I recommend that you speak to a tax accountant familiar with California real estate taxes. One big one that began with the infamous Gov. Gray Davis in 2002, "every real estate sale or transfer greater than $100,000 , which is just about everything, is subject to 3 1/2 % withholding at time of sale regardless." There are some outs having to do with 1031 exchanges and LLC corps so check into it before you sign on for the whole trip.
    With the costs being what they are here, making a decent profit can be difficult depending on where it is and potential buyers.
    That 3 1/2 % tax can be a very unpleasant surprise just when you expect to deposit the payoff into your account.

  5. 10saw | Dec 05, 2006 06:42am | #11

    Hi,

    Nice area! You'll do well.

    Contractors licenses are easy to obtain, they have classes out here as they probably do there

    One I know most GC's around here use is "golden state contractors school" who has a school down SD way. Costs about $1000 with proper documentation and classes start every month.

    They will take care of everything.

    Now I have no idea of the laws regarding your particular circumstance but the other links here should point you in the right direction.

    HTH

    10saw

  6. monicamark412 | May 22, 2023 02:37pm | #16

    Hello,

    My business partner and I have an opportunity to develop two small properties in Southern California, with a maximum of 9 homes between both parcels. One important question I have relates to contractor licensing. I am not a licensed General Contractor (GC) in California. If we proceed and Develop these properties and act as our own GC within an established LLC, do I need to be a licensed GC? Four of the homes will be residences for members of the LLC, while the other five will be sold to offset development costs.

    I would greatly appreciate any information or insights you can provide regarding this matter. Thank you in advance for your assistance.

    Best regards,

    1. mgmahan | May 22, 2023 03:22pm | #17

      How did this question get resurrected almost verbatim 16 years later? I am a licensed CA contractor and will be happy to answer your question if this is a legitimate post.

      1. calvin | May 23, 2023 07:07am | #18

        Notice the colored “link” that this crafty s.o.b. inserted in the copied message.

        1. mgmahan | May 23, 2023 11:16pm | #19

          I missed that. Seemed like it must be spam, but I didn’t see the link

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