<h2 class = 'uawtitle'>What To Know About Contractor License Classes In Los Angeles</h2><br />
<div style='font-style:italic;' class='uawbyline'>by Jeanette Rosario</div><br /><br />
<div class='uawarticle'><paragraph>Contractor licenses are of utmost importance since they allow entities and individuals to provide products and services to clients without going against the law. The permits can be obtained as LLCs, corporations, sole proprietors or partnerships. They are normally issued to the entity whose name is listed on financial statements or the owner of the business. This implies that every business bid has to be sealed in the exact name appearing on the permit. Facts on <a href='http://www.californiacontractorslicensing.org/contractor-license.html'>Contractors State License Center</a>.</paragraph><br />
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<paragraph>New applicants for licenses are usually required by law to take and pass a licensing exam. The exam is usually administered by a government agency. There are classifications in the licenses, which include Mechanical, Electrical, and Building licenses. Each license has several sub-categories under it. All applicants are required to pay a certain fee, which depends on the location the exam is being taken.</paragraph><br />
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<paragraph>In the licensing process, the person who sits for and passes the licensing exam is referred to as the qualifying agent. Qualifying agent may be the owner of the license or an officer or full time owner of the business. It is important to note that the license does not belong to the qualifying agent, unless the qualifying agent is also the owner of the business in whose name the license was issued. That would mean that the name of the qualifying agent must also appear on the financial statements provided during the application of the permit.</paragraph><br />
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<paragraph>There is always a classification accompanying every license issued in the US. Examples of classes include MU, HC, CMC, CE, BC, HRA, Specialties Environmental, and LMC. Class HC handles heavy construction, HRA handles highway, railroad, and airport, BC handles building, CE handles electrical, MU handles Municipal Utility while LMC handles masonry.</paragraph><br />
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<paragraph>In order for one to place a certain bid, the project they bid on must cover at least 60 percent of the class in which they are licensed. However, one may be exempted to bid on projects that do not cover more than 60 percent of the field they are licensed if the project is a commercial one. In such a case, areas of the project that fall outside the area of licensing must be sub-contracted to a properly licensed entity.</paragraph><br />
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<paragraph>The other exception to the above mentioned law is that, one may only sub-contract if the payment for the job in which they do not hold a permit is above 25000 dollars. Every US issued permit normally has monetary limit. As such, a contractor cannot take projects exceeding their limit stated on the license. Exceeding the limit is breaking the law which can attract penalties.</paragraph><br />
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<paragraph>The financial limit stated on the permit is determined by the financial statement submitted by a candidate while applying for the license. The relevant financial statements should be prepared by a licensed public accountant. A part from this, the applicant has to prove that they are insured. The two required insurance policies are general liability and worker compensation.</paragraph><br />
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<paragraph>Application of licenses entails providing a list of owners of the license. One must also disclose the history of the entity and experience in the field. Licenses take between four and six weeks to be approved or rejected. One is not allowed to bod, offer, or contract before the y receive the permit.</paragraph><br />
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