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Discussion Starter · #1 · (Edited)
Can a RMO in CAlifornia qualify an application with 0% ownership?

My RMO plans to use his license by himself but is willing to help me qualify my application and oversee projects as required by cslb.

He does not wish to qualify any other applications so I'm thinking the 20% rule doesn't apply? Is this right?

Is this possible or does he have to own 20% of the corporation?

If my RMO is allowed to have 0% ownership, then what title would he hold in my corporation?


Also if I apply as a sole proprietor, can an RMO qualify it? Because the application asks for an officer title if RMO is selected basically implying that the RMO in fact has to be listed as part of the corporation... Confused a bit here

Please help.
 

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A person can be an officer of a corporation with no ownership but then must post an additional $12.5k license bond. If the RMO has at least a 10% equity/ownership of that corporation a license bond is not needed.

If the RMO has anything less than a 20% equity/ownership the individual can NOT be listed as an RMO on any other corporation.

An RMO even with 0% ownership of a corp can and often times holds a corporate title, just be sure that your corporate by-laws and minutes reflect this. If the RMO does NOT own 20% of the corporation which he is acting as the RMO for then he can NOT be an RMO/RME or for that matter contract with any of his "other" licenses that he may have, he must in-activate all other licenses.

On a sole proprietors, presuming you are not licensed, you need an RME (this is not a corporation) and the RME has no title because he is simply an EMPLOYEE of your sole proprietor company. Here is some guidance directly off the CSLB website - "A responsible managing employee must inactivate his or her sole proprietor license to qualify for another license, and meet certain employment requirements. On a sole proprietor license, the RME may be replaced by the owner or by another RME. On a partnership license, the RME may be replaced by a general partner or by another RME. Note, however, an additional general partner may not be added to an existing partnership license. On a corporate license, the RME may be replaced by a responsible managing officer or another RME. On an LLC license, the RME may be replaced by another RME, a responsible managing officer, responsible managing member, or responsible managing manager."

This is my long standing understanding, lets see if the License Guru can chime in.
 

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Discussion Starter · #3 ·
A person can be an officer of a corporation with no ownership but then must post an additional $12.5k license bond. If the RMO has at least a 10% equity/ownership of that corporation a license bond is not needed.

If the RMO has anything less than a 20% equity/ownership the individual can NOT be listed as an RMO on any other corporation.

An RMO even with 0% ownership of a corp can and often times holds a corporate title, just be sure that your corporate by-laws and minutes reflect this. If the RMO does NOT own 20% of the corporation which he is acting as the RMO for then he can NOT be an RMO/RME or for that matter contract with any of his "other" licenses that he may have, he must in-activate all other licenses.

On a sole proprietors, presuming you are not licensed, you need an RME (this is not a corporation) and the RME has no title because he is simply an EMPLOYEE of your sole proprietor company. Here is some guidance directly off the CSLB website - "A responsible managing employee must inactivate his or her sole proprietor license to qualify for another license, and meet certain employment requirements. On a sole proprietor license, the RME may be replaced by the owner or by another RME. On a partnership license, the RME may be replaced by a general partner or by another RME. Note, however, an additional general partner may not be added to an existing partnership license. On a corporate license, the RME may be replaced by a responsible managing officer or another RME. On an LLC license, the RME may be replaced by another RME, a responsible managing officer, responsible managing member, or responsible managing manager."

This is my long standing understanding, lets see if the License Guru can chime in.
THANK YOU so much for the detailed explanation. its 100% clear now.

one more question,

If my RMO has a license that has been in "expired" status for less than 12 months, does it matter? does he have to bring that license to active status before he can be the RMO on my application?

because i searched everywhere on CSLB and it didnt specifically say the RMO has to have an "active" license.
 

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The is a huge difference between an "expired" license and one that has been revoked or suspended. Heck looking quickly at the almost 20 licenses I have qualified for over the past 30+ years and I see the majority are expired.

So no all things being equal I don't believe that the RMO needs to bring his expired license to an active standing in order to act as either the RMO or RME for you. This being said there are other requirements so that no examinations are needed, note:

  • If you do not currently or have not previously served as a qualifying individual for the same classification being applied for, or within the past five years have not passed the law and/or trade examinations, you will be required to take and pass the Examination for licensure.
  • If you currently serve, or within the past five years have served, as a qualifying individual for the same classification being applied for on a license in good standing, or within the past five years have passed the law and trade examinations for licensure, as outlined in Business and Professions Code section 7065, No Examination will be required.
  • Waiver provisions for the examination are outlined in Business and Professions (B&P) Code section 7065.1 and 7065.2. You must meet all of the conditions of the appropriate section for the Waiver Provision to apply. In some cases, only the trade exam may be waived.
 
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