I'm in discussion with a long term freind ( I'll call him Dave) to start a partnership in the construction industry.

Here's were I'm at, I'll do my best to make things clear.

I'm a State Licensed General Contractor. Prior to talking to Dave about a partnership, I set up a LLC which is qualified by my GC License. This made it possible to keep the license active without having to purchase Workers Compensation.

I'm working full time for a large corporation as a Project Manager so I'm not actively using the license.

I would like to set up the LLC to include Dave which would be doing 98% of the work. Basically letting him utilize my license to do business. He would keep me up to date on the all the jobs. Depending on how things go, I would take on more responsibility down the road.

Hope this makes sence, I'm not that good at putting words on paper.

Any input on the best way to go about this would be greatly appreciated.

Thanks,

RKF

Hi RKF

I cannot comment on the legal aspects of doing this as i am unsure of what they would really entail, but i will try more on a point of things that could go wrong.

I see at least one or two problems in doing this, the first one is your license, you need to be 110% sure that Dave is going to be reliable, knows what using the license entails and is going to uphold the sort of workmanship you yourself would under the licnese. Because if he becomes complacent or isnt concenred about meetin particular standards then you could risk losing your license i would think.

Another thing to consider is that what happens if Dave is working under your License in your registered LLC, what happens if he does injure himself and you have no Workers Comp, I dont know how good your friendship is but i have seen many friendships break up through partnerships and it could happen more so if he gets injure while working and maybe carnt work again, it will be very hard for him if he hasnt got soe sort of compensation.

Anyway i wish you luck in sorting this out, and hope that you can get it going.

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Can Dave legally work under your license? I'm not positive but wouldn't the new LLC have to have its own license for this?

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GatorGuy
I would be the qualifying agent for the LLC and Dave would be brought in as a partner or a % owner.

As far as WC, he wouldn't be covered under WC but would have medical insurance. This way he's covered 24 hours a day, not just when he's on the job.