In Florida, a construction license is given to an individual and not a business organization. If a business organization is not qualified and enters into contracts for the improvement of real property, it may be engaged in unlicensed activity. To avoid this, construction licensees should understand the means and methods to have their business organization qualified in Florida. Section 489.119, Florida Statutes, sets forth the requirements of the construction license holder to qualify a business organization.
Often times, the contractor may actually be seeking to qualify for an additional or second business or to add a second license scope to the existing business. For example, a general contractor may want to qualify two separate companies that focus on different types of construction. The construction license holder must seek to have his/her license placed with the business as the qualifying agent. This is allowed under the Florida’s Construction Licensing laws.
Here are the top 5 questions answered for a Florida Contractor to qualify an additional business entity.
1. What are the requirements for a contractor to qualify more than one business?
In order to qualify for an additional business entity, you must attest to your supervisory ability for each business. If you do not own 20% or more of the proposed business, or if the approval of this application will result in you qualifying three or more businesses (regardless of whether or not you already qualify three or more), you will be required to appear in front of the Board. However, the mandatory board appearance may be waived if the applicant can demonstrate that they are a W2 employee of the proposed business. The mandatory board appearance will not be waived if, upon approval of the application, the applicant will qualify 3 or more businesses.
2. Are Credit Reports Required?
Credit reports are required for the qualifying agent and for both businesses. Credit reports must include a FICO credit score and indicate that public records were checked on local, state and federal levels. Please visit the Department’s Financial Responsibility and Stability website for additional information on the Board’s financial requirements.
3. If I am the Qualifying Agent for a business, can I also contract in my own name?
No, to contract as an individual, you would have to apply to qualify an additional business entity.
4. If I obtain a second license in a different category (i.e. GCG and Roofer) can I operate that license under a different business?
Yes, but you would have to apply to qualify an additional business entity prior to operating in the new business name.
5. If I no longer wish to qualify a business, can I send the board a letter requesting removal from the company?
No, you must file an application to inactivate the license or file the application for a change of status from one business entity to another or a change of status from qualifying business to individual status. You may access these applications online at
https://www2.myfloridalicense.com/construction-industry/
For more information on Qualifying an Additional Business Entity in Florida, review our prior article
https://cobbgonzalez.com/florida-construction-licensing-qualifying-an-additional-business/
or call us for a consultation (Jacksonville: (904) 822-8001 Orlando: (407) 904-0830).