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Oregon Limited Liability Companies

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					Construction Contractors
 License Application –
      Step-by-Step

     For Limited Liability
         Companies
Select a business entity:
Limited Liability Company (LLC)

 Unincorporated
 association having one or
 more members, who are
 the owners.

 May be managed either
 by members or
 managers.
Create:
Limited Liability Company (LLC)
          Oregon LLCs must file “Articles
          of Organization” with the Oregon
          Corporation Division.
          Other LLCs must file an
          “Application for Authority to
          Transact Business in Oregon”
          and a “Certificate of Existence”
          with the Oregon Corporation
          Division.
Register:
Assumed Business Name
 Unless the LLC uses its legal name,
 which must contain the words or
 abbreviations for “limited liability
 company,” the LLC must register any
 other name, such as “A-1 Contractors,”
 with the Oregon Corporation Division
 Business Registry as an assumed
 business name (ABN).
Complete:
Parts 1 and 2 of the Application (page 4A):



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Determine:
Class of Independent Contractor
If the LLC has no employees and
no more than two unrelated
members, the LLC is an EXEMPT
independent contractor.
To qualify as EXEMPT, the
members must own at least 10% of
the business.
If the LLC has employees or more
than two unrelated members, the
LLC is a NON-EXEMPT
independent contractor.
Unrelated Members

             Unrelated members are
             persons who are not
             members of the same
             family.
             “Family” refers to parents,
             spouses, sisters, brothers,
             daughters or sons,
             daughters-in-law or sons-
             in-law or grandchildren.
(For Employers) Obtain:
Workers’ Compensation
 Obtain a 7-digit compliance number from
 the Workers’ Compensation Division
 (WCD); or
 Obtain the name and policy number of a
 workers’ compensation policy.
 If you have questions, contact the WCD
 at 503-947-7815.
(For Employers) Obtain:
Taxpayer Identification Numbers

 Obtain an Oregon Business Identification
 Number (BIN) from the Oregon Department of
 Revenue. A registration form is available at
 www.oregon.gov/DOR/BUS/doc/211-055.pdf.
 Or call 503-378-4988.
 Obtain a federal employer identification
 number (EIN) from the Internal Revenue
 Service (IRS). Contact the IRS at www.irs.gov
 or call 800-829-4933.
Complete: Part 3 of the Application (page 4B)




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Appoint:
Responsible Managing Individual (RMI)

         Every contractor must appoint and maintain at least
         one RMI.

         For a limited liability company, either the
         member, manager or an employee may qualify as
         an RMI. (If your RMI is an employee, make sure
         you selected the NON-EXEMPT independent
         contractor status).

         The RMI must exercise management and
         supervisory authority over the construction activities
         of the business by meaningfully participating in:
          • the administration of the construction contracts; or
          • the administration of the day-to-day business
             operations.
Training and Testing
The RMI must complete 16
hours of training offered by a
CCB-approved training provider.
(See instructions, pages 14 -15,
for list of approved providers).

The RMI must pass a test. (See
instructions pages 14 -15 for
scheduling testing).
 Experience in Lieu of Training
 and Testing

Training and testing is not required if:
  The RMI is listed on the CCB’s current licensing
  records before July 1, 2000 as a sole proprietor,
  partner, or other principal of a business that was
  licensed before July 1, 2000, and
  The business’ license has not lapsed, or, if lapsed,
  has not lapsed for more than 24 months (before the
  application date); and
  The RMI was the sole proprietor, partner, or other
  principal within the 24-month period before the
  application date.
NOTE – You will next complete
Part 5 of the Application



 You will complete Part 4 of
 the Application after
 reviewing additional slides.
Complete: Part 5 of the Application (page 7)




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Endorsements – Related to
Types of Structures


 To determine an endorsement, identify
 the structure type upon which work will
 be performed:
 • Residential Structure
 • Small Commercial Structure
 • Large Commercial Structure
Residential Structure

 Site-built home
 Structure with one or more
 dwelling units, four stories or
 less above grade
 Condominium, rental or other
 residential unit part of a
 larger structure, separate
 property interest
 Modular home
 Manufactured dwelling
 Floating home
Small Commercial Structure
               Non-residential structure, area
               less than or equal to 10,000
               square feet; not more than 20
               feet high
               Non-residential unit part of
               larger structure, area less than
               or equal to 12,000 square feet;
               not more than 20 feet high
               Non-residential structure, any
               size, costs less than $250,000
               for contract price of
               construction
Large Commercial Structure

 A structure that
 is not a
 residential
 structure or a
 small
 commercial
 structure.
Select:
Endorsement by Structure Type

 Residential Endorsement: May perform work
 involving residential or small commercial
 structures or projects.

 Commercial Endorsement: May perform
 work involving small or large commercial
 structures or projects.

 Dual Endorsement: May perform work on
 any structure or project.
Endorsement Classifications –
Related to Scope of Work

   To determine an endorsement
   classification, identify the scope of
   work that will be performed:
    • General Contractor
    • Specialty Contractor
    • Limited Contractor (Residential Only)
    • Developer
General Contractor

               A (prime) contractor
               that supervises or
               performs any
               number of unrelated
               business trades or
               crafts
Specialty Contractor


 A (sub) contractor
 who performs two
 or fewer
 unrelated building
 trades or crafts
Limited Contractor
(Residential Only)
            A residential limited contractor
            can perform any number of
            unrelated building trades, but may
            not:

               Perform work as a contractor
               exceeding $40,000 in gross
               annual income; or

               Enter into contracts to perform
               work as a contractor in excess
               of $5,000.
Developer
Owns the property being developed;

Acts in association with general
contractors, one or more of whom
has sole responsibility for
overseeing all phases of the
construction; and

Does not perform any construction
work on the property.
Select:
Residential Endorsement Classification
Residential Endorsement                               Scope of Work
     Classification
Residential General Contractor         May supervise, arrange for, perform an unlimited
(RGC)                                  number of building trades.

Residential Specialty Contractor       May perform one or two unrelated building trades.
(RSC)                                  May perform more trades if cost for labor and
                                       materials is $2,500, or less.
Residential Limited Contractor (RLC)   May supervise, arrange for, perform an unlimited
                                       number of building trades, if work per job site is
                                       $5,000, or less, and annual gross is $40,000 or less.
Residential Developer (RD)             Owns property; arranges for work to be performed
                                       by licensed contractors; does not perform any
                                       construction work.
Select:
Commercial Endorsement Classification

 Commercial Endorsement                             Scope of Work
     Classification
Commercial General Contractor Level 1     May supervise, arrange for, perform an
(CGC-1)                                   unlimited number of building trades.
Commercial General Contractor Level 2     May supervise, arrange for, perform an
(CGC-2)                                   unlimited number of building trades.
Commercial Specialty Contractor Level 1   May perform one or two unrelated building
(CSC-1)                                   trades.
Commercial Specialty Contractor Level 2   May perform one or two unrelated building
(CSC-2)                                   trades.
Commercial Developer (CD)                 Owns property; arranges for work to be
                                          performed by licensed contractors; does
                                          not perform any construction work.
IMPORTANT TIPS – Level 1 and
Level 2 Commercial Contractors

 Level 1 and Level 2 commercial contractors may perform
 the exact same types of work on the same structures or
 projects (small or large commercial).

 Level 1 contractors must maintain a higher bond and
 more insurance coverage. (See below).

 Key employees must have prerequisite experience:

    Level 1 = 8 years
    Level 2 = 4 years
Complete: Part 4 of the Application (page 6)




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Certify:
Experience for Commercial Contractors
An applicant for any Level 1 license must
certify that the applicant’s key employees
have 8 years of construction experience.

An applicant for any Level 2 license must
certify that the applicant’s key employees
have 4 years of construction experience.

See instructions, page 16, for education that
may substitute for experience.
Complete:
Part 6 of the Application (page 8)




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    Purchase:
    Residential Surety Bond and
    Insurance
  Residential Endorsement              Residential    Insurance Policy
       Classification                    Bond
Residential General Contractor (RGC) $20,000         $500,000 per occurrence


Residential Specialty Contractor       $15,000       $300,000 per occurrence
(RSC)

Residential Limited Contractor (RLC)   $10,000       $100,000 per occurrence


Residential Developer (RD)             $20,000       $500,000 per occurrence
    Purchase:
    Commercial Surety Bond and
    Insurance
     Commercial Endorsement               Commercial   Insurance
         Classification                     Bond         Policy
Commercial General Contractor Level 1     $75,000      $2 million
(CGC-1)                                                aggregate
Commercial General Contractor Level 2     $20,000      $1 million
(CGC-2)                                                aggregate
Commercial Specialty Contractor Level 1   $50,000      $1 million
(CSC-1)                                                aggregate
Commercial Specialty Contractor Level 2   $20,000      $500,000 per
(CSC-2)                                                occurrence
Commercial Developer (CD)                 $20,000      $500,000 per
                                                       occurrence
IMPORTANT TIPS - Dual
Endorsed Licenses

A licensee that holds a dual endorsement is a licensee that
may perform work on all types of structures, residential,
small commercial, and large commercial.

The licensee must maintain BOTH the residential and the
commercial surety bonds.

The licensee need maintain ONLY ONE insurance policy, in
the higher amount for the classification selected.
Complete:
Parts 7 and 8 of the Application (page 8)



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Select:
Standard Industrial Classification (SIC) Codes
 SIC Codes are used to identify, for statistical purposes only, the type of work the
 contractor performs. The contractor should select between one and three codes.
    Building Construction                                Special Trades (Continued)
    1521 Single Family Houses                            1742 Plastering, Drywall, Acoustical and Insulation
    1522 Residential, Other than Single Family           Work
    1523 Operative Builders                              1743 Tile, Marble and Mosaic Work
    1541 Industrial Buildings and Warehouses             1751 Carpentry
    1542 Nonresidential Buildings other than             1752 Floor Laying, Other Floor Work
         Industrial Buildings and Warehouses             1761 Roofing, Siding and Sheet Metal
                                                         1771 Concrete Work
    Heavy Construction                                   1791 Structural Steel Erection
    1611 Highways and Streets                            1793 Glass and Glazing Work
    1622 Bridge, Tunnel and Elevated Highways            1794 Excavation Work
    1623 Water, Sewer, Pipeline, Communications, Power   1795 Wrecking and Demolition Work
    Lines                                                1796 Installation of Building Equipment
    1629 Heavy Construction not otherwise classified     Not Elsewhere Classified
                                                         1799 Special Trades, not elsewhere classified
    Special Trades                                       0783 Tree Services
    1711 Plumbing, Heating and Air Conditioning          7342 Pest Control
    1721 Painting and Paper Hanging                      7349 Chimney and Other Structural Cleaning
    1731 Electrical Work                                 7363 Help Supply Services
    1741 Masonry and Stone Work                          7389 Inspection Services
Residential Contractors -
Certified Home Inspectors

             If a residential general
             contractor or a residential
             specialty contractor will
             perform home inspections,
             a member, manager or
             employee must be certified
             as a home inspector or
             must employ a certified
             home inspector.
Complete:
Parts 9 and 10 of the Application (page 9)



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List:
Debts and Criminal Convictions
The law requires disclosure of the
members’ and managers’ construction
debts or obligations relating to construction
activity that arose no more than 5 years
before the application.
The law requires disclosure of certain
criminal convictions of the members and
managers that occurred no more than 5
years before the application.
Complete:
Parts 11 and 12 of the Application (page 9)


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List:
Licensing History and Business Information

              Applicants must provide
              information regarding their license
              histories as contractors, in
              Oregon as well as other states.

              The application requests
              information, for statistical use
              only, relating to the amount of
              business that the applicant
              expects to perform in the
              upcoming year.
Complete:
Parts 13 and 14 of the Application
(page 10)



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Complete:
Part 15 of the Application (page 11)




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Sign and Date:
Application

 Sign the application at Part 16
 (page 12).
 Members sign on the sixth and
 seventh lines after the certification.
 Print name of members.
 Insert date that application was
 signed.
Complete: Part 16 of the Application (page 12)




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Pay:
$260 fee
 Complete part 17 (page 13)
 and submit application with
 a fee for $260. The fee
 covers a two-year license.

  Payment may be made by
 check, money order, some
 credit cards, and cash (if
 delivered in person and
 exact amount only).
Complete:
Part 17 of the Application and (optional) Credit
Card Payment Section (page 13)




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FINISHED!!!!
      Following these step-by-step
      instructions, you should have
      completed all portions of the
      CCB license application for a
      limited liability company.

      If you need help or have any
      questions, contact the CCB at
      (503) 378-4621.

				
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Description: Oregon Limited Liability Companies document sample