License holder ownership %

[hoya99]

In NJ does anyone know the % of ownership a license holder must have in a company for that company to use his license?

[bdarnell]

0%. I am the qualifier for our company and I don't own any of it. Wish I did :lol:

[tshea]

Depends on NJ laws.
I'm the qualifier for my company and I own it all!

[jeff43222]

I suspect the qualifier doesn't have to actually own any part of the company. It's not required here. The only restriction is that the qualifier can only act in that capacity for one company.

As luck would have it, I own 100% of my current company. :D

[bdarnell]

Follow up:

I looked thru the NJ statutes and I can't find anything that requires the qualifier to have ownership in the company he is qualifying. That doesn't mean it isn't there in the legaleese somewhere, but it didn't jump out at me during the first pass.

Interesting about MN. So you can only qualify one company ? I'm in the process of qualifying us for Florida and I'm told you can qualify multiple companies, but you have to prove to the board that you can manage all of them.

[charlie b]

I don't know how this forks for electrical contractors, and I certainly don't know anything about NJ. But just for comparison sake, I have served a similar role for two separate engineering companies (at different times). I was 49% owner in one case, and 0% owner in the other case. The only thing needed was for the ownership (i.e., board of directors) to formally vote me into that role, and to document that vote in their published meeting minutes.

[charlie b]

Brad, I just noticed you are quoting me in your signature. I am flattered. But should I be getting royalty payments???? 8) :lol:

[bdarnell]

But should I be getting royalty payments????

Probably. And, I should also point out that the quote was used without permission. I am hopeful that Charlie is not the litigious sort. :lol: :wink:

[jeff43222]

Follow up:

Interesting about MN. So you can only qualify one company ? I'm in the process of qualifying us for Florida and I'm told you can qualify multiple companies, but you have to prove to the board that you can manage all of them.

Yep -- every EC must have a master electrician of record who is responsible for all work done by the EC, and this person cannot be employed as an electrician for any other employer. If we didn't have this law, we'd probably have a lot of ECs whose responsible master electricians would be responsible on paper only. It could also be a conflict of interest if a master electrician qualified companies that competed in the same markets.

It doesn't seem to be a problem here. There are more licensed master electricians than licensed ECs, so I think it's safe to say that it's not difficult to hire a master electrician to qualify an EC.

[Minuteman]

I'm the non owner and qualifier for my company. Here, the qualifier need only be a "titled" officer of the company.

I once was an owner. Lost my butt. I found out that there is a big difference between being a wire twister and a businessman.

I must say, as the non owner, I sleep better now.






Edit to correct grammar

[bdarnell]

I once was an owner. Lost my butt.

I posted this once before, but it bears repeating:

How to make a small fortune in the electrical business - Start with a large one. :?

[satcom]

51% for Business Permit, it is not in the electrical contractors law book, it's on the application for a business permit, and you need an active contractors Lic. to apply for a business permit.

[bdarnell]

51% for Business Permit,

I looked thru the business permit application HERE (http://www.state.nj.us/lps/ca/electric/buspermit.pdf)

I didn't see the 51% requirement. Am I missing something ??

[satcom]

I didn't see the 51% requirement. Am I missing something ??



Your right it's not on that application, but it's on the one i filed when i started the business, also Franchise box was not on my application, at the time i filed, i needed a copy of the corporation filing, from the commercial recording office, that had to show the % of ownership, there was a information sheet with the application, is that on PDF?