The Best Corporation for Construction - CLS

[@RepentB4TooLate]

Best examples so far out of all these videos! Subscribed

[@ContractorLicenseSchool]

Awesome, thank you!

[@vids595]

2:31 Regarding the two bonds of $25,000. One is the "Contractor's Bond". The other is called the "Bond of Qualifying Individual". If you own at least 10% of the voting stock/membership interest of the LLC, you do not have to carry the "Bond of Qualifying Individual".

[@simplescents3309]

How much to set up for a c10

[@ContractorLicenseSchool]

Depends on what package you are interested in. Give us a call!! (800)-659-1207

[@vids595]

2:49 I was only required to carry a 1 million dollar general liability insurance policy, not 2 million. Did the requirements change recently?

[@vids595]

The policy information listed on the CSLB website calls it 1 million but . . . The minimum amount of general liability insurance required by the CSLB for a general contractor in California is $1 million per occurrence and $2 million in aggregate. This means that the policy must provide coverage of at least $1 million for any single incident and a total of $2 million for all incidents during the policy period. It's important to note that this is the minimum requirement, and depending on the size and scope of the projects that the general contractor undertakes, they may want to carry additional coverage to adequately protect themselves and their clients. Contractors should also be aware that different types of contracting licenses may have different insurance requirements, and they should consult with the CSLB or an insurance agent to determine the specific insurance requirements for their license type.

[@vids595]

Many find this confusing. Sole proprietorship, partnership, LLC and INC are types of corporate structures. S-corp election can be filed for by either an LLC OR an INC. An "S-Corp" is a tax designation, not a type of corporate structure, but sometimes people call an INC or even less often an LLC that has filled for s-corp election an "s-corp". So in order to have reduced bonding and insurance requirements from the CSLB (compared to what an LLC is required to carry) one would need an INC and it does not matter if the INC has filled for s-corp election or is a c-corp, the requirements are the same for both. To further clarify, an LLC that has filed for s-corp election is still required by the CSLB to carry the $100,00 llc bond and general liability insurance, and if the qualifying individual owns less than 10% of interest an additional bond. An INC is not required to carry the $100,000 bond or the "Bond of Qualifying Individual".

[@ContractorLicenseSchool]

Yes but even if an LLC files the s election it still pays for all the bonds and insurance

[@vids595]

My LLC's $100,000 bond costs $2000 per year. The first year was $1500 then the insurance company raised it to $2000. This seems to be common, similar to how your internet service provider offers an introductory rate in order to secure new customers. I do have excellent credit.

[@BRICKBYBRICKCONSTRUCTION1994]

Thank you!!!

[@ContractorLicenseSchool]

You're welcome!

[@PatronsServices]

That’s crazy the worker did not rape she just got caught

[@edwiiiin1]

If we have a sole proprietorship, what’s the process to convert to Scorp? Thanks

[@ContractorLicenseSchool]

Are you licensed or getting licensed?

[@vids595]

You have to establish an llc with the SOS and then file for s-corp election. Then contact the cslb to transfer your license to the llc, if are are already licensed.

[@vids595]

In the case of an s-corp, YOU only have to pay 7.65% self employment tax, but doesn't your s-corp (effectively you as well) have to pay the other half?

[@ljuarez714]

When you pay yourself it’s not an owner draw, it’s through payroll. Taxes are deducted from your check and the employer (your company) pays their portion. To minimize tax, you can pay yourself a dividend tax free

[@vids595]

Corporations (both c-sorps and s-corps) may not be required to carry the $100,000 LLC bond but still are required to have a bond of at least $15,000 for each responsible managing officer, right?

[@ContractorLicenseSchool]

No, only one bond total

[@vids595]

@@ContractorLicenseSchool Thanks!

[@JustinMartinez-y1h]

Very Interested home owner in Illinois and property owner in California I want to Learn and work.and have no problem learning. I've been in construction since 15. 35 now ready to get the proper guidance for success.

[@jesusgutierrez7409]

Yes I would like to restart my license and make it a corporation

[@ContractorLicenseSchool]

Give us a call. We can help

[@erikverghese898]

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