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Thread: Start business then get license or get license and start business?

  1. #1
    Join Date
    Mar 2017
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    Fulton, Mississippi
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    Start business then get license or get license and start business?

    Wanting to start my own business and was wondering what other people had done in this regard. I am currently studying 4-5 hours a day to get ready for the test and get the state license. My thinking is to have the license and then build the business as then I could go at it at 100% as I am now dedicated to studying and getting the license while I work.

  2. #2
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    Jun 2004
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    Cherry Valley NY, Seattle, WA
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    Quote Originally Posted by KBS View Post
    Wanting to start my own business and was wondering what other people had done in this regard. I am currently studying 4-5 hours a day to get ready for the test and get the state license. My thinking is to have the license and then build the business as then I could go at it at 100% as I am now dedicated to studying and getting the license while I work.
    I''l bet most of us have done side work before we had our licenses. I however, would never do such a thing...... I would want to have my license before completely going out on my own.
    Ethan Brush - East West Electric. NY, WA. MA

    "You can't generalize"

  3. #3
    Join Date
    Aug 2004
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    Northern illinois
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    Quote Originally Posted by KBS View Post
    Wanting to start my own business and was wondering what other people had done in this regard. I am currently studying 4-5 hours a day to get ready for the test and get the state license. My thinking is to have the license and then build the business as then I could go at it at 100% as I am now dedicated to studying and getting the license while I work.
    I don't see how you can legally do any work until you have some kind of license. If doing the work legally matters to you then your course should be pretty obvious.

    OTOH a lot of people don't bother with licenses and no one seems to care all that much. Customers rarely do, anyway. Licensed competitors do.
    Bob

  4. #4
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    Oct 2007
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    New Jersey
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    In NJ you don't actually get licensed as an electrician, you get licensed as an electrical contractor. Then you set up your DBA, Inc., or LLC and tie your electrical contractor's license to the legal entity. And the company name must have "electric" or "electrical" in its name.

  5. #5
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    The op should start out being legal before he starts doing the work.

  6. #6
    Join Date
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    Quote Originally Posted by chris1971 View Post
    The op should start out being legal before he starts doing the work.
    Well it sounds like he's doing just that. I get the impression he's working for someone else now, not under his own shingle.

  7. #7
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    Good Luck, Enjoy the Forum!
    If you are even thirsty, you are two quarts low.

  8. #8
    Join Date
    Mar 2017
    Location
    Fulton, Mississippi
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    Yes I am working for someone else right now and will continue doing so up until I have most everything in order. I know there are no guarantees in life or business, however I do want a client base setup before I leave my current position. I have been doing side jobs for the past several years, nothing that required a permit i.e. residential and commercial service work. I would never do anything illegal or work under someone's else license, and yes I have seen this done around here. One thing to note about Mississippi is that you are not required to be licensed to wire any residential property unless you are inside a certain city limits that require a permit, a lot of towns don't even require permits to build commercial or residential, crazy right. However I want to be able to provide a full service professional business and not be limited by not having a license and insurance. I think that a professional should act like one and I feel like having a state issued license is a big part of that.

  9. #9
    Join Date
    Oct 2007
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    New Jersey
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    Quote Originally Posted by KBS View Post
    Yes I am working for someone else right now and will continue doing so up until I have most everything in order. I know there are no guarantees in life or business, however I do want a client base setup before I leave my current position. I have been doing side jobs for the past several years, nothing that required a permit i.e. residential and commercial service work. I would never do anything illegal or work under someone's else license, and yes I have seen this done around here. One thing to note about Mississippi is that you are not required to be licensed to wire any residential property unless you are inside a certain city limits that require a permit, a lot of towns don't even require permits to build commercial or residential, crazy right. However I want to be able to provide a full service professional business and not be limited by not having a license and insurance. I think that a professional should act like one and I feel like having a state issued license is a big part of that.
    I for one commend your sense of professionalism and wish you the best of luck.

  10. #10
    Join Date
    Jun 2016
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    Tampa, FL, USA
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    Assuming there are no legal reasons in your state that keep you from doing so, you can definitely start the business before you get your license and this is probably a good idea. There are lots of things you need to do before you start doing jobs and getting your license is just one of them.

    You should immediately determine the form of business you are going to have (sole proprietor, LLC, corp, etc), determine the name you will be using, and then register it with the state. You should determine whether a good internet URL is available when determining your name. If you are going to be something other than a sole proprietor, you'll need a registered agent to handle your official document deliveries.

    The sooner you form the company, the sooner you can start using the company name to shop for vehicles, insurance, lawyers, bookkeepers, materials, credit apps at vendors, office space, payroll services, web services, trademarks, loans, bank accounts, business credit cards, and 100 other things. Things like checking accounts and credit cards need your company name before they can be issued. You will want to write company checks to cover start-up costs like licence exams and prep materials.

    People/vendors will take you more seriously if you have a registered business, plus you don't want to start buying stuff in your own name and then have to transfer the stuff to the business. That's messy accounting wise. If you're allowed to do certain work without a licence in your jurisdiction, having a company will make you appear more trustworthy to potential clients.

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