Two companies - one license?

" Or would I have to run the entire project thru my business?"

If you were in Florida you would. Here a homeowner can be his own GC, but if he sells the house before he's lived there a year, he's guilty of contracting without a license. If he hires a licensed RC, BC, or GC, he can flip the house immediately legally. Your laws may be similar.

Don't run other people's projects through your license/permit.

If he wants to GC his own project, and your state requires licensing for it, then it sounds like he's going to have to either get a license or hire a GC to work with.

If you are going to act as GC on the job, be sure you charge appropriately for the liability.

Kowboy said:

" Or would I have to run the entire project thru my business?"

If you were in Florida you would. Here a homeowner can be his own GC, but if he sells the house before he's lived there a year, he's guilty of contracting without a license. If he hires a licensed RC, BC, or GC, he can flip the house immediately legally. Your laws may be similar.

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That's kind of what I'm assuming the deal would be here.

Half-fast Eddie said:

If he uses your permit, you are responsible for compliance.

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I get that, but I also struggle to see where this could go south for me. He's built the same spec house several times now. Any minor issues arising from an inspection would be corrected and reinspected at his cost. I will be involved enough to see and correct any issues I don't like. If a major issue arose that neither of us saw coming, I'm confident I would not be on the hook financially and he would not attempt to hold me responsible. We would just get it straightened out at his expense.

Half-fast Eddie said:

Read the state licensing rules about being a qualifier for anotuer company, i think you need to be a w-2 employee.

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I've read the rules about a qualifier, but I'm still not clear about it as far as working for two companies. I know I could take the test and be a qualifier for his license, but I want to maintain my own license in my company name for my other work. I guess the question is, Can I take the test one time, be a w-2 employee and qualify him, while still having my license in my LLC? Maybe just a question for the contractor board?

NYCB said:

Don't run other people's projects through your license/permit.

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What would you consider "running it through my license"? Doing it for no profit, or doing it and stepping completely away, what if I'm involved heavily, but the finances don't flow through me?
What level of involvement makes a person a GC vs just a permit puller?
To me, the law should be the dividing line, but I can't find much in writing, and seems like a grey area to me. What's the sense of doing most of the leg work for him, if he's equally qualified(experienced, but not licensed)and wants to do it?

NYCB said:

If he wants to GC his own project, and your state requires licensing for it, then it sounds like he's going to have to either get a license or hire a GC to work with.

If you are going to act as GC on the job, be sure you charge appropriately for the liability.

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He's going to get a license eventually but trying to get a project going sooner than later. I'm the GC he's going to work with for this one(either as my company or qualify his). I'm just trying to determine the easiest way to run the job and meet regulations.

I plan to charge appropriately...

CMF13 said:

I get that, but I also struggle to see where this could go south for me.

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You struggle to see where it could go south for you to pull a permit on a project that you are not going to actively manage?
This line tells me one of two things. Either you are not a contractor or you are an unqualified contractor.
Let's start with the most obvious. When anyone gets hurt on the jobsite, who are the regulators, insurance companies and personal injury attorneys coming after?
Let's throw in the other most obvious. Someone buys the house and a year later it's discovered there is a fatal flaw in the structure, the occupancy permit gets pulled and the building requires 100K worth of remediation to make it safely liveable. Who are they coming after?
Stop being silly.
If you take on the liability you must be compensated.
If you take on the responsibility you must be present to ensure the residence is safe and of reasonable quality.
You are going to trust a guy that wants to build it as cheap as possible and dump it off as quickly as possible to protect your interest while doing so?

CMF13 said:

Any minor issues arising from an inspection would be corrected and reinspected at his cost.
, I'm confident I would not be on the hook financially
he would not attempt to hold me responsible.
We would just get it straightened out at his expense.

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You sound very naive. Hope it doesn’t bite you in the butt.

Florida used to allow one person to qualify two corporations. It required an appearance in front of the licensing board to explain why you are doing this. "To help out my friend" probably won't fly. How do you manage 2 companies and multiple projects? As mentioned earlier, liability, insurance, etc is critical.

dbbii2 said:

Florida used to allow one person to qualify two corporations. It required an appearance in front of the licensing board to explain why you are doing this. "To help out my friend" probably won't fly. How do you manage 2 companies and multiple projects? As mentioned earlier, liability, insurance, etc is critical.

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It wouldn't be just helping a friend, it would be employed by a friend. This definitely isn't a favor deal, it's business.
I don't think managing multiple projects will be an issue since he would do most of the busy work on his. In addition, this will be at least the 5th house with the same plans, same subs, etc. the only difference being the law changed and he can't pull the permit.
The liability, insurance, and finances are what I'm not sure about. I'm just trying to find a way to do it without adding a bunch of double work to the project.

CMF13 said:

It wouldn't be just helping a friend, it would be employed by a friend. This definitely isn't a favor deal, it's business.
I don't think managing multiple projects will be an issue since he would do most of the busy work on his. In addition, this will be at least the 5th house with the same plans, same subs, etc. the only difference being the law changed and he can't pull the permit.
The liability, insurance, and finances are what I'm not sure about. I'm just trying to find a way to do it without adding a bunch of double work to the project.

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At least in Florida (and I think Tennesse has similar requirements) it doesn't matter what YOU think. It matters what the BOARD thinks.

CMF13 said:

I get that, but I also struggle to see where this could go south for me. He's built the same spec house several times now.


?

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How did he do it the last few times? Why does he want to change?


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CMF13 said:

He could pull one or two permits a year before. The law changed, and homeowners can no longer pull permits, only licensed contractor.

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Not sure it changed. Allowing the HO to pull a permit FOR THEIR OWN HOME has been around forca long time. But he can’t sell the house for a year, and other restrictions.