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For years when I was starting out I spent alot of time trying to figure out how to not have to show income on my taxes. Then one day my accountant told me to make and show as much as I could and let him figure out how to minimize the tax burden. Since then I don't care how they pay. It all goes in the books and no one gets a discount for cash. Makes life much easier
 

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Gotta wonder about any GC that asks for a cash price. How is he doing his accounting?? I have been approached by people in the past about framing their houses for cash when they were going to self contract. Unless the homeowner actually has the cash, it aint gonna happen. Banks are going to want to see the paperwork. If your going to show the bank, you better show the IRS too!
!
 

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DavidC
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Once, at the end of a long one day job, the lady of the house asked for the bill. I obliged. While handing it to her, she suddenly remembered that she didn't transfer any $$$ into the checking account.

She was dumbfounded. In a panic. Didn't know what to do.


She looked at me, embarrassed, nearly frightened out of her mind, what would I think of such a question!?!

"Do you take cash?" she asked.

Always helpful and willing to go the extra mile I replied, "Only if you have proper ID."

She started to show me her license just about the time the light went on.

Good Luck
Dave
 

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Plus, if you contract without a license consumers don't have to pay you for your work. You don't have a right to sue them in court for work you weren't legally able to perform.
I suspect that this is the case in most "cash" jobs. If this law was enforced more tailgate contractors would be operating by the books.
 

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If I call me insurance company and tell them I may have a problem, there immediate response is "Do you have an invoice?" No invoice, no coverage. I do take cash, but I always give them an invoice. The invoice has the customer name, date, what was done, payment amount and payment amount. When the bank deposit is made, I make copies of all checks, money orders, and cash.

My attorney tells me if I do not have an invoice, I do not have a court case.
 

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If I can deposit, I'll take that form of payment. Doesn't matter to me if its a CC, traveler's check, check or cash. I do draw the line at kids, as the market seems a bit flooded these days, but I'm hoping to start accepting them again soon.
 
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Maker of Fine Sawdust
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At one of my hardware suppliers they have a sign:

Attention Parent
----------------
Unattended children
will be sold


Cracks me up everytime I see it. One of these days I am going to bring my kids in there and see how true it is.
 

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Plus, if you contract without a license consumers don't have to pay you for your work.
I know that it is in WA. and CA. for sure and probably many more states as well.
No, that is not true. You are required to have a license and insurance in Washington. If you do not, then the beef becomes between you and the state. The customer does not gain cart blanche to stiff you with the bill
 

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No, that is not true. You are required to have a license and insurance in Washington. If you do not, then the beef becomes between you and the state. The customer does not gain cart blanche to stiff you with the bill
I know in MD and VA some cases have been dismissed the minute it is found the company did not have a home improvement license .

It is a crime in these 2 states to work on an existing home without a license . Not sure how a judge can force a homeowner to pay for what is technically a criminal act. Not sure if this is how all cases are handled though .
I have also heard of homeowners going this route on purpose . I.E they have no intention of paying all the money and know the court won;t make them .
 

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No, that is not true. You are required to have a license and insurance in Washington. If you do not, then the beef becomes between you and the state. The customer does not gain cart blanche to stiff you with the bill
My understanding is that if an unlicensed contractor is hired by the customer, but the customer does not KNOW they are unlicensed - they are not obligated to pay that contractor. However, contract law takes precedence if the customer knows or would have reason to know about the contractors licensing. So, if you hire a handyman, and can reasonably assume they aren't licensed for electrical work, you're still going to pay them. If you hire a person advertising as an electrician, and you have every reason to believe they are, but go to sue them later - if they weren't licensed, you don't owe.

Also, at this point, the state should step in and be prosecuting the guy....but this is Washington, so, unless there's a fish involved, nothing seems to happen.

For the most part, the same people who ask me to take cash are the same ones who are concerned that I'll deep hole the well and drill it deeper than necessary. I always tell clients "I'm certainly not going to START stealing from the guys with guns".
 

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Contractor law

Consequences of Contracting Without a License


The Contractors State License Board (CSLB) was established in 1929 at the request of the building industry. Since work done by contractors can endanger both them and consumers, the industry realized being regulated would help raise standards, thereby protecting consumers.
Those who operate without a license harm consumers each and every day. They tarnish the respectability of the construction industry and harm the state's financial situation by operating in the underground economy.
The CSLB makes a concerted effort to target unlicensed operators. The CSLB's Statewide Investigative Fraud Team (SWIFT) conducts undercover sting and sweep operations on a weekly basis around the state. You could be targeted by one of these operations. If you're caught contracting without a license, you will likely have to go in front of a judge to answer to misdemeanor charges, which carry a potential sentence of up to six months in jail and/or a $500 fine, and a potential administrative fine of $200 to $15,000.
If you get caught again, the penalties get stiffer. You could face a mandatory 90 day jail sentence as well as a fine of 20 percent of the contract price of the work performed, or a $4,500 fine.
Felony charges may be filed against those who illegally use someone else's license or who try to mislead consumers into believing that you are a licensed contractor. In addition, you could face felony charges if you contract for any project that is covered by a state of emergency or disaster proclaimed by the Governor of California or the President of the United States. If you're convicted of felony charges, you could end up in state prison.
Plus, if you contract without a license consumers don't have to pay you for your work. You don't have a right to sue them in court for work you weren't legally able to perform.
In addition, if you've got your contractor's license and have a dispute with a consumer, the CSLB has a variety of tools to help resolve it. These range from on-site negotiation to mediation and arbitration. These services are free of charge to consumers and licensed contractors.
Plus, when you consider the cost of your contractor's license, about $20 a month, you can't afford not to be licensed.


CA Contractors State License Board
 
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