Employee selling their master license to another contractor

[Ponchik]

seems it isn't known WHY the other guy can't pass the test.... i could probably teach a blind dog with a note in it's mouth to pass the C-10 test... but you can't hold a C-10 if you have some legal issues like.....

I don't know which state the OP is from but you have to agree that the California tests are very easy.

 

[kwired]

TX state law states he has to own at least 50% or more of the other business or be an employee of the other business.

This is true...
Looks like he has a choice to make.....this is an easy call for you

Maybe I am missing something, the person in question in the OP is (maybe is) employed by both businesses in question.

There are cases where similar arrangements do work out, there are cases where the person in the OP's position rightfully should have no interest in participating in such an arrangement. Either way there is details we maybe don't know about, and about the most we can do here is inform those involved what laws do apply, anything else is just personal opinion.

 

[cdslotz]

Maybe I am missing something, the person in question in the OP is (maybe is) employed by both businesses in question.

There are cases where similar arrangements do work out, there are cases where the person in the OP's position rightfully should have no interest in participating in such an arrangement. Either way there is details we maybe don't know about, and about the most we can do here is inform those involved what laws do apply, anything else is just personal opinion.

The OP clearly states:

The employee still wants to work for me and be the license holder for another company.

The State of Texas only allows the aforementioned conditions for this to be allowed......period.

 

[kwired]

The OP clearly states:

The State of Texas only allows the aforementioned conditions for this to be allowed......period.

If the second company is just using his license it is probably illegal, if he has required amount of ownership or is actively involved in operating the business it may be legal. But it does sound like he is mostly just "lending" them a license and has little to do with ownership or operation - so probably illegal.

I still fail to see how the OP can be held liable for much of anything done at the second business unless he is involved or agrees to let them use any of his resources.