Transfering license to company

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kjfelec

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My employer has asked if i would be willing to use my license (maters) as the company license. I know I would have to have it changed to reflect the company name etc and he is willing to pay for that. My question is what would be a fair compensation for this?


When I first came on board he was partners with another guy who carried the business /masters license. They split about 5 years ago and he never got around to obtaining his masters license. He plans on taking the test in the next year.

What would you guys do? What would you ask for or expect in return for doing this?

Thanks in advance for the responses.
 
I wouldn't even consider doing anything without a lawyer first. Next, I wouldn't agree to anything unless I had complete control of the company operations and finances. Third, I would require a contract... a long term contract... and one that would llow me to back out at anytime.

And finally, it would have to be a whole bunch of money. Probably more than the company could afford.

Bottom line is that it simply is not worth the liabiltiy and risk any other way.
 
I second Bryan's statement and also ask the question: why didn't your theoretical partner get his business/master's license?

I would be a little leary of walking in to that situation.
 
I don't think the OP is a 'partner' in the business, he's an employee.

But I'll third the motion not to do it. It's your license. Ask them if it's OK for you to use their drivers license instead of your own.
 
As long as you can opt out at your convienience and he maintains all nessecary liability insurance and your licensing board has no issue then I would say do it I would ask for General Formans Pay until he recieves his license which would encourage him to test
 
Electrical contracting firms hire license holders all of the time. This is just one way of doing business. As Bryan suggested before you agree to anything you'll need to speak with an attorney. You will likely have a increased degree of liability. This should be off set with monetary compensation. How much compensation is a good question. You would need to define exactly what your role in the company would be. Would you become a partner or just be an employee? Will you work with your tools or become part of the office/project management staff? There are many variables.

Personally I wouldn't have a problem with being a license holder for a company if the compensation and daily job duties were to my liking.
 
Giving away hard earned Lic.for big liability.

Giving away hard earned Lic.for big liability.

bphgravity said:
I wouldn't even consider doing anything without a lawyer first. Next, I wouldn't agree to anything unless I had complete control of the company operations and finances. Third, I would require a contract... a long term contract... and one that would llow me to back out at anytime.

And finally, it would have to be a whole bunch of money. Probably more than the company could afford.

Bottom line is that it simply is not worth the liabiltiy and risk any other way.
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Ditto! you will assume all liabiility for any bad work he does,
 
infinity said:
Electrical contracting firms hire license holders all of the time. This is just one way of doing business. As Bryan suggested before you agree to anything you'll need to speak with an attorney.

Personally I wouldn't have a problem with being a license holder for a company if the compensation and daily job duties were to my liking.
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I agree with infinity, this is done all the time. You have the advantage. Being a project manager you should have and idea of how well the company is doing and any problems. Having been with the company for some time let's you know what type of person you are dealing with.

If you feel comfortable doing this then you should have a better idea what the company can afford than we do. Bigger company bigger paycheck. I think I would want a percentage of gross and become part owner.
 
growler said:
I agree with infinity, this is done all the time. You have the advantage. Being a project manager you should have and idea of how well the company is doing and any problems. Having been with the company for some time let's you know what type of person you are dealing with.

If you feel comfortable doing this then you should have a better idea what the company can afford than we do. Bigger company bigger paycheck. I think I would want a percentage of gross and become part owner.
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Yes, Dale has touched on some of the advantages. As with everything in life there are risks. You won't get very far without taking any.
 
I am in that very situation. I have had my license since '99 but always worked for someone else. The company I work for now realized it would be better for me to do the elctrical than to sub-out. (No previous license or electrical contracting, just generator sales and motor/pump repairs.) He pays for license use, liability, and fees, etc. It is a great gig for both of us as we feed off of each other. If you are confident in the ability and willingness to look out for you, it may be a good fit. Make sure you have all final say over craftsmanship since it ultimately comes back to you. I tell workers and helpers, it is his company but it is my license. He has final say in the business aspect and decisions but he knows and backs me that it is my say on electrical. As I said, here it is great fit, only you will know if it will be for you.
 
In MA you have to be an officer of the company registered with the Secretary of State.
 
tkb said:
In MA you have to be an officer of the company registered with the Secretary of State.
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Which makes me wonder how the employer in the OP is doing business to begin with. What is he putting on the permit application for company license number? Or is he pulling permits as a journeyman? In which case he can only do business as "Soe Schmoe, electrician" not "Schmoe electric", for example. And in which case, he could only have one employee. Something isn't right with the picture.

To answer the OP, only you can decide what kind of compensation would make it worth it for him to use your license.
 
I had done this in MA with my previous employer. I now have my own business. As previously stated you will have to be made an officer of the company.

I would ask your employer what he is offering in exchange for you transferring your license to the company. I suspect you may be able to get a raise and or some frindge benifits.

If you leave the company your license stays with you but you will have to register a new business name when you transfer it back to you.

I would make sure the company is incorporated to provide you with a shield against liability. If the company is not incorporated I would talk to a lawyer. You could ask your boss to pay for any fees you may incur with a lawyer.

I would also make sure that all aspects of the electrical work performed by you and other electricians and helpers/apprentices is done correctly.
 
j_erickson said:
Which makes me wonder how the employer in the OP is doing business to begin with. What is he putting on the permit application for company license number? Or is he pulling permits as a journeyman? In which case he can only do business as "Soe Schmoe, electrician" not "Schmoe electric", for example. And in which case, he could only have one employee. Something isn't right with the picture.

To answer the OP, only you can decide what kind of compensation would make it worth it for him to use your license.
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I just went back to the OP. I also wonder how his boss has been pulling permits for five years. Maybe it's his partners old license and didn't take it with him when he left??
 
I believe what the business would have to incorporate and you would become the Responsible Managing Employee (RME). I also believe that you should talk to a lawyer or contact you local licensing board.

This is from the CSLB: The partnership is not an entity separate from the partners. Each partner may be personally liable to the extent of his or her personal assets and may be legally responsible for the negligent acts of the other partner(s).

If you become a corporation: Creditors may claim only the corporate assets, although corporate officers may be personally liable.
 
j_erickson said:
Which makes me wonder how the employer in the OP is doing business to begin with. What is he putting on the permit application for company license number? QUOTE]


I was wondering the same thing. My guess is he has some sort of license, just not the same capacity.

j_erickson said:
In which case he can only do business as "Soe Schmoe, electrician" not "Schmoe electric", for example.
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Or maybe "SoSo Electric" :grin:
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mkgrady said:
I just went back to the OP. I also wonder how his boss has been pulling permits for five years. Maybe it's his partners old license and didn't take it with him when he left??
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If the partner actually left, he would still be in violation of our regulations. If he just left the "day to day" operations but remained an officer of the corporation, that would have been OK.

How about a little more info from the OP? Is this a corporation?
 
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