Renting Your License

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growler

Senior Member
Location
Atlanta,GA
HVElectric said:
Hello Guys,
I've recently been approached from a long time contractor from another state that is now doing work in my state and would like me to pull permits for him.


This guy may have come from a state that doesn't require a license or he may be one of the old guys that grandfathered in ( many of these guys can't pass a test ). Even states with a reciprocal egreements normally will not reciprocate unless the license holder obtained his license by taking a test similar to those required in their state. If they have any disciplinary action against them the state won't give a letter allowing reciprocity. There is probably a good reason why this guy can't get a license in your state and it would be a good idea to find out why before doing any business with him. Many states allow you to verify a license and check standing on-line. Don't waste money on a lawyer until you check out everything you can for free. If you find out this guy is BS-ing you then you wouldn't want to do business with him any way.
 

active1

Senior Member
Location
Las Vegas
"I've recently been approached from a long time contractor from another state that is now doing work in my state and would like me to pull permits for him. He has alot of work and I am just getting started,"

1. This person came to your state and is working without a license.

2. He possabily sold or did electrical work that he can not get a permit for and now has problems with the owner.

3. He realized the sales line "I can't get a permit for this job but can do it cheep" does not aways work.

4. Just because the person says he has a lot of work does not mean anyone will make money. Having work and making money are two differnt things. I could work for minimum wage and have more work than anyone.

5. If they are working and selling without a lic, permit, inspection then what are the chances they have valid insurance in your state, pay taxes, bond, and other things a legitiment business does?

6. If things went bad what are the chances this person would pack up their truck and head out of town with out warning? Leaving someone elce holding the bag, work not finished, money not paid out, a material debt, etc?


Do you even know this person or did they seek you out?

If you wanted to concider it, you could possibility hire them as a salesperson / consultant and maybe helper or electrician depending on the rules. Ods are that's not what they want and that will be the end.

Even being a sub or employee for this person if the rules allow is questionable due to #5 & #6.

Otherwise tell them to get and have em run out of town.
Wantibe EC piss me off (no business lic, no insurance, no bond, no electrical lic, no taxes, no office number, no permits, no inspections, legal employees, workers comp, etc.).

They work on a different playing field alowing them to charge much less.
This hurts a lot of the EC tring to provide a good servive, nice living for them and employees, and a return on their business investment.
 

dezwitinc

Senior Member
Location
Delray Beach, FL
License Rental

License Rental

Seems like paranoia has set in with most people on this subject.
I had a very good (and profitable) experience with a similar situation.
A specialty fire alarm company from Nevada had been awarded several projects in the natural gas generation plants that were being built in MA a few years ago after the original contractor failed to perform.
After answering an ad in the newspaper, we entered into an agreement that made me a non voting officer of the company and which gave me the responsibility of overseeing the installations that they were performing.
All paperwork was reviewed by my attorney, their attorney, and the Commonwealth of Massachusetts.
I was paid a salary as an officer of the company and continued with my own work under their company name and my license as well as performing inspections at the jobsites on at least a twice a week basis.
It was a sad day when their projects were completed and that weekly check stopped coming.
If the "rental" is done properly and not just as a sham, I see nothing wrong with it.
 

dnem

Senior Member
Location
Ohio
dezwitinc said:
Seems like paranoia has set in with most people on this subject.

I don't think that it's so much paranoia as it is a focus on the potential for loss [both $ & liability] which is so much higher than the potential for profit. . I don't think the opportunity should be thrown away without checking it out. . That's why in posts #9 + #10 I tried to highlight caution while still moving forward to check it out.

Others might not think the risk is worth even taking a look. . That's for each person to decide for themselves.

David
 

hardworkingstiff

Senior Member
Location
Wilmington, NC
kbsparky said:
The plumber. I have no business doing plumbing. Hire him to deal with the poop. :roll:

So do you see the difference? The licensed entity is doing the work. In the OP, the non-licensed entity would be doing the work.

The entity doing the work (and signing the contract) needs to be licensed (at least in NC).
 

celtic

Senior Member
Location
NJ
dezwitinc said:
Seems like paranoia has set in with most people on this subject.

....

All paperwork was reviewed by my attorney, their attorney, and the Commonwealth of Massachusetts.
.....
well as performing inspections at the jobsites on at least a twice a week basis.

You were saying something about paranoia :D

If done properly - paranonia is a given ;)
 
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