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#165438 06/27/07 07:44 PM
Joined: Jun 2007
Posts: 5
alaal Offline OP
New Member
Hi Guys - I'm currently a licensed EC in 3 states (Alabama, Georgia, and Florida) and am looking to form a "partnership" in each state but not to be involved in the business "directly". Does anyone have any experience with this type of arrangement? How would you go about finding a "partner"? Obviously liability insurance is a must, but any other thoughts/suggestions (pro or con) will be appreciated.

alaal #165442 06/27/07 08:22 PM
Joined: Jan 2005
Posts: 5,316
Cat Servant
This thread brings up a number of issues, that just may lead to it being deleted.

"Not involved" yet using your license is a practice that is foolish at best, and fraudulent and criminal at worst. "Renting" out your license, using some sham "partnership" has absolutely nothing good to be said about it.
If you want to "lease" a license ... get a taxicab!

Likewise, partnerships are generally considered to be the absolutely worst method of sharing a company. If you've been around at all, you have heard the tails of troubles that long out live the partnership.
Many places make it easy to incorporate. Consider that.

Again, the industry is rife with "partnership" deals that have turned out to be scams.

If you have to look for a partner .... you shouldn't have one.

renosteinke #165448 06/27/07 10:51 PM
Joined: Jun 2007
Posts: 5
alaal Offline OP
New Member
Thanks for your input, like stated, all is welcome. Yes, I've been around (the # of licenses kind of give it away) but having been around, I'm dizzy from the whole thing. Rather sit back and let the youngsters fight it out with the GC's, employees, and the others. Just trying to find a way to provide for the family. In Florida, there are primary and secondary qualifiers, primary being financially responsible for the corporation and secondary responsible only for the work performed. Nothing fradulent, illegal, or otherwise a "sham" as you state. This is the type of deal I'm interested in, maybe. That's why I posted to see what others think.
Thank you.

alaal #165451 06/27/07 11:36 PM
Joined: Jul 2002
Posts: 8,407
Likes: 2
I don't really think we want to go there.
I won't lock this thread, but I would encourage comments from other moderators.

Trumpy #165456 06/28/07 08:18 AM
Joined: Nov 2006
Posts: 348
ITO Offline
Do you mean an LLC?

Back when the roll-ups came to town buying every one out they found out the hard way that a business is the man who runs the show, and not the employees, the trucks or the building they work. Men who run these kind of shows only need partners for for start up cash, and once the ball gets to rolling they don't need partners any more.

A partnership might work out on a local level but I would not think the out of state deal you are proposing would work like you think it should.

Just my two cent, but maybe one local partnership with an active partner in the background, like you, would be more stable and profitable.

101° Rx = + /_\
ITO #165465 06/28/07 11:22 AM
Joined: May 2002
Posts: 1,716
I agree with the others and seriously doubt FL would allow it per the state statutes.

3. Q. Can a licensee qualify more than one business?
Yes; however, allowing a licensee to qualify more than one business is conditioned upon the licensee showing that he/she has both the capacity and intent to adequately supervise each business organization in accordance with Section 489.522, Florida Statutes. The licensee will be required to appear before the Board before an approval of an additional business is granted. A qualification for an additional business organization may be revoked or suspended upon a finding by the Board that the licensee has failed in the licensee's responsibility to adequately supervise the operations of that business organization.

I would think being a "silent sole license holding partner" would make complying with the statute difficult.


Roger #165496 06/28/07 10:18 PM
Joined: Jun 2007
Posts: 5
alaal Offline OP
New Member
The Q&A section is fine, but to get at the law itself you have to go to the statutes.

489.522 Qualifying agents; responsibilities.--

(b) A secondary qualifying agent is responsible only for:

1. The supervision of field work at sites where his or her license was used to obtain the building permit; and

2. Any other work for which he or she accepts responsibility.

A secondary qualifying agent is not responsible for supervision of financial matters.

No matter what the law says, obviously from the post so far no one thinks it to be a good idea and that's why I asked. I was wanting an honest opinion from peers and I truly appreciate the replies so far posted.
I spent 1 1/2 years and over $4K getting licensed in Florida. My sympathies go out to anyone who attempts it. They make it tough. If anyone does decide they want to be an EC in Florida, I would recommend finding one of the companies that specialize in it. Not Mike Holt or Tom Henry, although great with prep, that is less than 20% of it. Filling out all the paperwork is a nightmare and they have created an industry in Florida that exists only to wade thru the miles of red tape.

alaal #165497 06/28/07 10:33 PM
Joined: Jan 2005
Posts: 5,316
Cat Servant
I don't think the basic goal is without merit .... rather, that we already have numerous methods to deal with these issues. Incorporation, Franchising, etc. Trying to 're-invent the wheel' seems, well, inefficient.

renosteinke #165538 06/29/07 07:48 PM
Joined: Oct 2005
Posts: 141
Good points posted above but the idea can work, i've spoke to some of you guys in the chatroom about my licensing dilemma, not everyone who cannot currently get a license is a bad guy but I will agree there are a lot of scams around, especially down in S FL.

LoneGunman #165550 06/29/07 10:55 PM
Joined: Jun 2007
Posts: 5
alaal Offline OP
New Member
My thoughts were towards a small operation that wants to grow. Before I got my 1st state license, I did resi and service work with 2 full time and 1 part time employees. After licensing, I moved to the commercial market (where I had always worked for others) and things really took off. Within 2 years I had 20 full time employees and 1.5M in revenue. In Florida there are EC's and ER's. ER's are county licenses that are only good for a particular county, the EC is state wide. When you talk about the Tampa-St. Pete-Bradenton area, those are 3 seperate counties that require 3 seperate ER licenses or 1 EC license. I'm not interested in any slick willies just down from New York/New Jersey. I know several of them and they ain't worth pee.

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