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Check your state laws.
In my state, it is illegal to give or receive compensation for a referral. A person giving referrals in exchange for compensation (in construction trades) is considered a salesperson and must be licensed as salesman for the company paying the fee. And can only be a salesman for one company.
Also, if you are not yourself licensed as a GC or carpenter, it is illegal in many states for you to hire a carpenter to work for you if he's not licensed. A landscaping license in most states does not entitle you to do carpentry work, whether it is part of a landscaping job or not.
 

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It's not illegal to make commission on a sale here you just need to be registered with the contractors board as a salesman.
Mike.
That's exactly the rule here also. But the salesman can only sell for one contractor. He has to register as that contractor's salesman. If the salesman changes the contractor he works for, he has to change his registration.
 

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With regard to some states requiring a sales license.... I am unsure how they could possibly limit to one contractor/trade etc. That would be "restraint of trade" and easily be bypassed under federal statutes.
They can and they do in MI. No it isn't restraint of trade and not all restraints of trade are illegal.
You can always sue the state and we'll all watch and see how they can :)
 
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