A contractor operates as a sole proprietorship and wants to incorporate. They must notify LARA of the business structure change within how many days?
Correct Answer
B) 30 days
Michigan requires contractors to notify LARA within 30 days of any changes to business structure, ownership, or other material changes that affect their license status.
Why This Is the Correct Answer
Michigan contractor licensing law requires licensees to notify LARA (Licensing and Regulatory Affairs) within 30 days of any material change to their license information, including a change in business structure such as converting from a sole proprietorship to a corporation. The 30-day window ensures LARA's records remain accurate and that the license is properly associated with the correct legal entity.
Why the Other Options Are Wrong
Option A: 10 days
10 days is too short — Michigan law provides a 30-day notification window for business structure changes. A 10-day requirement would be unusually tight and is not the statutory standard.
Option C: 90 days
90 days is too long — waiting three months to notify LARA would leave the agency with inaccurate records for an extended period. The 30-day requirement balances giving the contractor time to complete the incorporation process while keeping regulatory records current.
Option D: 60 days
60 days is not the correct Michigan timeframe for this notification. While 60 days appears in various other regulatory contexts, LARA's contractor notification requirement is 30 days.
Memory Technique
LARA gets 30 days notice — think 'a month to LARA.' Any time Michigan asks about notifying LARA of a material change, the answer is 30 days.
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