Running the Business · Part 6
Becoming an RMO for someone else's company: the liability you are taking on, and the only version that is lawful
Lesson 0.4 covered the offer in its crude form: a friend pays you to "put your license on" a company. By year three the offer is dressed better: a real company with real jobs, a minority ownership stake, a title, and a monthly fee, from someone who lost their qualifier or never had one. This lesson is what saying yes means in law: you are personally responsible for that company's construction operations under section 7068.1, with a misdemeanor and license discipline if you do not actually supervise; the exceptions that allow a second license at all; the bond you will owe; the disassociation rule that keeps you responsible until CSLB receives your letter; and the narrow version of the arrangement that is lawful, which involves real ownership, real supervision, and a written agreement about both.
What the full lesson covers
- A qualifier may serve a second company only under 7068.1(c): 20 percent common ownership, a subsidiary or joint venture, or the same majority of officers; and never more than three firms in a year (7068.1(b)). A monthly fee and a title do not satisfy any of them.
- Even where the exception applies, 7068.1(a) makes you personally responsible for direct supervision and control of that company's construction operations, as 16 CCR 823 defines it; failure is a misdemeanor (six months, $3,000 to $5,000) and cause for discipline against your own license.
- As an RMO owning under 10 percent, you owe a $25,000 qualifier bond in your name (7071.9); with less than 20 percent, you cannot lawfully be the second-company qualifier at all.
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More lessons in Growing the Business
- 1Hiring under AB 5: the ABC test, why a 1099 helper is a lawsuit unless they hold their own license, and the construction subcontract exemption
- 2Employees: wage and hour, overtime, meal and rest periods, final-pay rules, and the workers' compensation class code
- 3Apprentices and the Division of Apprenticeship Standards: how a small shop trains its next plumber lawfully
- 4Adding classifications: when to add the B, the C-20, or a second specialty, and how the exam waiver works