Recently, we were made aware of a contractor whose business name was rejected because it didn’t include the type of work they do. So, do California contractors have to include their classification within their company name?
You may be surprised by the answer: While the California Secretary of State may accept your business name, the Contractors State License Board (CSLB) requires that your business name include the classification that you are applying for. For example, a general building license may require the company name to include “Construction” or “Building,” whereas a plumbing contractor may need to include “Plumbing” or “Plumber” as part of the organization’s moniker.
It’s wise to adhere to the conditions of both the CSLB and the Secretary of State: Violators could face up to $5,000 in fines or even criminal prosecution for violating advertising laws.
The discrepancy between these authority figures comes down to a few different factors:
- The CSLB has the power to reject a business name if they believe it could be misleading to the public.
- Contractors can only advertise work that falls within their classification. Additionally, all advertising must include their license number.
Fortunately, even if your business name is already registered with the State, there are workarounds. This could include a “DBA,” which means “doing business as” and is essentially another name that the business can legally go by.
MeyerPink Law can help you ensure that your business is filed properly with both the Secretary of State and the CSLB. Call (209) 694-3085 or email [email protected] to get started. You can also explore guidance from our business formation lawyers or browse more legal resources for contractors on our website.
