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A contractor changes from sole owner to corporation. What should be checked before new contracts are signed?

Correct Answer

C) Whether the corporation has the proper contractor license or license transition approval for that entity.

A new business entity generally needs the proper contractor license authority before contracting.

Answer Options
A
Use the prior license record while the new contracting entity signs the documents.
B
Sign under the sales name and update CSLB records after the first progress payment.
C
Whether the corporation has the proper contractor license or license transition approval for that entity.
D
Whether the first customer agrees the old license is close enough, even though the new entity is the one signing the contract.

Why This Is the Correct Answer

A new business entity generally needs the proper contractor license authority before contracting.

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