Licensed VS. Unlicensed - Contractor Talk - Professional Construction and Remodeling Forum

jgjrei · 04-11-2007, 09:09 PM

I was Just wondering if anyone could tell me first of all an idea of how much more a licensed painting contractor can charge than one who is not licensed. Also, how is it that licensed contractors can get enough jobs if there are so many contractors out there running "businesses" unlicensed? aside from the obvious need to stand out based on quality and professionalism. Any input would be appreciated.

farrellpainting · 04-11-2007, 09:17 PM

A licensed contractor can charge as much as he can get!

An un-licensed's contractor can't charge anything!

How we stand out is that we get more and bigger jobs due to the fact that we are professional, legal and have Ins.!

Don't plan on getting too far in life as a painting contractor, if you think it will cost you less to "do business" with out a license/paying taxes!

Brushslingers · 04-11-2007, 09:20 PM

Quote:

Originally Posted by jgjrei

I was Just wondering if anyone could tell me first of all an idea of how much more a licensed painting contractor can charge than one who is not licensed. Also, how is it that licensed contractors can get enough jobs if there are so many contractors out there running "businesses" unlicensed? aside from the obvious need to stand out based on quality and professionalism. Any input would be appreciated.

Depends on if during your own presentation, you tell them exactly what you said above and remind them to check license and insurance from all who work on thier home... thier biggest investment ever.... then show em yours.

4thGeneration · 04-11-2007, 09:36 PM

Bottom line is homeowners are looking for rock bottom prices for the majority of estimates. If they can cut someone 100 dollars they will. I will never lower my prices again. I hd a real estate lady try and get me to go lower on price because they were moving to a bigger house and had a budget. What about my family and the budget I have I said. I also asked has she ever cut her % take because remember they all have a "Budget" My whole thing is stop trying to keep up with neighbor and buy a home you can afford to keep up. I always show ins, license and such, but are never asked for it.

jgjrei · 04-11-2007, 10:08 PM

I appreciate the input. I fully understand the importance of having a license and running legitimate business, however it just seems that the market being what it is does not reward those who are licensed. therefore does one get a license simply to be protected or is there a real difference in pricing?

farrellpainting · 04-11-2007, 10:26 PM

Get a damn license and build a business!

Who cares about the low-life self proclaimed paint contractor, that will be undercutting other contractors for small time jobs, for poor clients, til he's 75!

dirt diggler · 04-11-2007, 10:46 PM

Quote:

Originally Posted by jgjrei

I was Just wondering if anyone could tell me first of all an idea of how much more a licensed painting contractor can charge than one who is not licensed.

here's the breakdown

$8.35 per square foot without license
$9.64 per square foot with license

additional 20% mark up with insurance (25% with workers comp)

NOW ... KEEP IN MIND ... the rates in your area might not be the same as mine!!!!

jgjrei · 04-11-2007, 11:01 PM

Dirt Diggler, Thank you. I didnt want to come off as against licensing. I am far from that. Just wanted to know the real differences we should expect as legitimate contractors in terms of both benefits and pay.

farrellpainting · 04-11-2007, 11:11 PM

Quote:

Originally Posted by dirt diggler

here's the breakdown

$8.35 per square foot without license
$9.64 per square foot with license

additional 20% mark up with insurance (25% with workers comp)

NOW ... KEEP IN MIND ... the rates in your area might not be the same as mine!!!!

Quote:

Originally Posted by jgjrei

Dirt Diggler, Thank you. I didnt want to come off as against licensing. I am far from that. Just wanted to know the real differences we should expect as legitimate contractors in terms of both benefits and pay.

!

Richard · 04-12-2007, 05:35 AM

Quote:

Originally Posted by jgjrei

I was Just wondering if anyone could tell me first of all an idea of how much more a licensed painting contractor can charge than one who is not licensed. Also, how is it that licensed contractors can get enough jobs if there are so many contractors out there running "businesses" unlicensed? aside from the obvious need to stand out based on quality and professionalism. Any input would be appreciated.

An unlicensed painting contractor can and will charge whatever they can get. They typically will charge less than a legit business owner, but not always. Keep in mind that in some states you dont need a license to operate a business. I feel like carrying insurance is more important than having a "license" which is really just a tax thing anyway. Insurance is a monthly cost, where a license is a one time payment per year.

I hope and pray that all the unlicensed/uninsured idiots break or drop a $300,000 vase or painting. Or drop their ladder onto a customers car. Or better yet, burn down a customers house. Then and only then, I will be satisfied.

Exroadog · 04-12-2007, 09:37 AM

Also....if your unlisensed, all checks written to you will have to be written in your name. So when you cash enough or get a few big ones, the IRS gets a red flag! They will hunt you down! And to get a business bank account, you need the license, unless your in one of those un licensed states!

MakDeco · 04-12-2007, 09:46 AM

Quote:

Originally Posted by Exroadog

Also....if your unlisensed, all checks written to you will have to be written in your name. So when you cash enough or get a few big ones, the IRS gets a red flag! They will hunt you down! And to get a business bank account, you need the license, unless your in one of those un licensed states!

Yes each state has different license requirements and it varies big between different states. Here in IL Painting contractors do not have to have a license with the state. All tho each village would love you to have one to work their. I have work in over 50 different towns and I am not going to pay each town money to work there. Not going to happen. If I will a GC, Electrician, Plumber and working with in the limits of a permit within a village then yes I see a purpose for it.

(BTW - I pay taxes, insurance and have a business banking accounts)

Joewho · 04-12-2007, 02:11 PM

Bottom line is that being licensed, insured, pay taxes, costs more to do business, so you have to charge more.

KellyPainting · 04-12-2007, 07:14 PM

I live in Mass. We do not have to get a license.
If we choose we can send $200.00 to some government agency and get a piece of paper in the mail.There is no test, no qualifications... just send money. I do not have a license...what I do have is insurance, bank account.. and a steady business built on references. I can get my dog a license tomorrow if I wish, but what will it prove.

In my short time in business (only 2 years) I have been asked for proof of insurance once..other than that, I am never asked for anything. I have never even given a page of references.. just rattled off a few names here and there..(Did I mention Bob..from Bob's discount furniture?..ya..I did his house). maybe because I don't work for people who have never heard of me yet.

I think there should be paint inspectors..ya thats right...
and there should be codes and fines. Maybe even some
color citations... I'd love that!

farrellpainting · 04-12-2007, 07:20 PM

Are we talkin about a "Painting License?" or a DBA for tax purposes?

I'm a little confused, is there really an actual license?

KellyPainting · 04-12-2007, 07:29 PM

Not where I live, it's a general contractors license
...and I have never seen a Painting license in my life
can anyone produce one? please copy and paste (along with a unicorn)
I have been painting for around fifteen years in conn, R.I and Mass.
No one has ever showed one to me ever...you would have thought I would have seen one by now if say..they were so important.

I do have a business certificate from my town.
if thats what you mean.

jgjrei · 04-12-2007, 08:12 PM

In our State (California) any painting contractor must have a contractors license to accept any job over $500, so umm, yeah. We're talking about a Contractors License, well at least I was.

farrellpainting · 04-12-2007, 08:17 PM

Kelly,So where you live you can get a GC license in the mail for $200, w/o takin any test's?

You should have your business registered by filing a DBA(doing business as) to get an EIN(employment I.D) to pay taxes,and make you eligible to obtain Ins.That's all that N.Y requires anyway!

I don't really give a f**k anymore, people can pay taxes, or not, have Ins, or not, License? etc... I just hope that they come do an estimate after me because I notify every prospect of the potential atrocities of doing business with HACK's! Good Luck !

farrellpainting · 04-12-2007, 08:20 PM

Jihad?,What are the requirements to this painting license?

For any paint work over $500???

Brushslingers · 04-12-2007, 08:24 PM

In every state you must have a business license filed in the county/city that your office is located, as well as at least an LLC to actually be "legal". Some states require certification and a license to do whatever the trade you are working in calls for however, most do not. You CANNOT get an EIN/business account/insurance without proper certs, nor can you get workers comp or exempt without it. Those that do not are illegal and can be hit with well over 1500.00 in fines for a single incident. If you have no idea what I am talking about, you are not legal.