Doing business with a mech. Contractor

[roach1521]

Have some one interested of adding electrical to his mech. Business in NJ, any one ever been a bona fide representative for a this type of set up or does it not exist for electrical


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[infinity]

Is this contractor trying to get an electrical license? He could always hire a current license holder to be the electrical contractor.

 

[roach1521]

Is this contractor trying to get an electrical license? He could always hire a current license holder to be the electrical contractor.

Yes he wants to use my license, he wants to add me as a "Bona fide representative" I never heard that in NJ for electrical contracting, I am just weighing my options and deciding if it is worth it or if it will be to much as, I can only get there like once a week to check on the work

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[Jraef]

It's done a lot here in California. GCs do it too. The down side for you is that you tend to become a "captive" of theirs, so you live and die by their success.

 

[infinity]

Yes he wants to use my license, he wants to add me as a "Bona fide representative" I never heard that in NJ for electrical contracting, I am just weighing my options and deciding if it is worth it or if it will be to much as, I can only get there like once a week to check on the work

It can be done rather easily if all of the parties involved play nice. I have a family member who held the license for a company for a few years. If you spell out everything in a detailed contract and have a good attorney it could be a nice source of extra income.

 

[roach1521]

It can be done rather easily if all of the parties involved play nice. I have a family member who held the license for a company for a few years. If you spell out everything in a detailed contract and have a good attorney it could be a nice source of extra income.

I'm def going to see an attorney to draw up a contract, I'm more concerned of any ramifications if I miss something during work getting done and it comes back on me

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[infinity]

I'm def going to see an attorney to draw up a contract, I'm more concerned of any ramifications if I miss something during work getting done and it comes back on me

That's always a possibility in business especially in the electrical contracting business, that's the reason you have insurance. You should also explore ways to limit your personal liability.

 

[sameguy]

Yes he wants to use my license, he wants to add me as a "Bona fide representative" I never heard that in NJ for electrical contracting, I am just weighing my options and deciding if it is worth it or if it will be to much as, I can only get there like once a week to check on the work

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Have them pay insurance, bond, etc., also you can get $1mil. On yourself and they can pay it too!
Here we had many ,buy a license for a job ,that now you must be on payroll or corp. partner/owner for one year to use your license. If you move from your current status.
Get it all in writing with you first in mind, they need you.

 

[RumRunner]

Have some one interested of adding electrical to his mech. Business in NJ, any one ever been a bona fide representative for a this type of set up or does it not exist for electrical


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This is done all the time and legal in all states. You have a choice of either creating a business corporation or LLC. You will not be "enslaved" by the mechanical contractor. . .you will essentially become equal owners but may differ in tax liability structure.
Consult an attorney how to go about this. I'm not a legal adviser.
There are significant ramifications in terms of liability and taxations that will affect your personal assets.
You can't get meaningful advice from a social media like MH.
Wish you the best.

 

[roach1521]

This is done all the time and legal in all states. You have a choice of either creating a business corporation or LLC. You will not be "enslaved" by the mechanical contractor. . .you will essentially become equal owners but may differ in tax liability structure.
Consult an attorney how to go about this. I'm not a legal adviser.
There are significant ramifications in terms of liability and taxations that will affect your personal assets.
You can't get meaningful advice from a social media like MH.
Wish you the best.

Im not probably going to do it, because I work full time and can't truly give what the jersey law really wants which is a lot of oversight on my part. I was just really looking for some great stories or someone who had a terrible result on here to help sway me

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[roach1521]

Im not probably going to do it, because I work full time and can't truly give what the jersey law really wants which is a lot of oversight on my part. I was just really looking for some great stories or someone who had a terrible result on here to help sway me

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I was actually just wondering in jersey if u can do a bona fide representative, but that looks like it's only good for HVAC and plumbing

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[gadfly56]

Im not probably going to do it, because I work full time and can't truly give what the jersey law really wants which is a lot of oversight on my part. I was just really looking for some great stories or someone who had a terrible result on here to help sway me

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In NJ, you cannot hold the license for more than one entity at a time, nor can there be more than one license holder per entity. If you are currently doing business as "ABC Electric" and he wants to add an electrical division to "DEF Mechanical" with you as the license holder, then ABC Electric will close up shop unless you can find someone to be your license holder. You will now be the license holder for DEF Mechanical, which will probably have to change it's name to "DEF Mechanical and Electric", since NJ requires new entities to include the work "electric" or "electrical" in the business name. That's the simple form of things.

I won't claim there's no way around this as I am not a business lawyer. I suspect that the electrical part of his mechanical business would never keep you occupied full time. You would need some arrangement that allows you to pursue you own electrical business separately and likewise for him to pursue mechanical business separately where there is no intersection of your respective trades, and that might be some holding company or some such.