ECN Forum Forums General Topics of the Trade General Discussion Area Electrician vs. Electrical Contractor

John,

One other thing that we have to worry about as contractors, SALES TAX! We had to almost keep 2 seperate books, (NO Not good and off the record.)but we had to keep one book for new work and one for service work. We had to charge sales tax for any job that had repairs, but not the new home improvement work. I don't miss that plus the payroll.

Harold:
How did you know what I'm running on the other 'puter???

Paid a few vendor bills, ran the payroll for 4, ran the fed witholding, printed the checks.....stuffed the envelopes.

In the things to do column......
Federeal Tax forms, 4th qtr
FUTA Tax forms.
W2's
State Witholding End of Year
State Unemployement & Disability EOY
Sales tax; 4th Qtr & EOY

Prepare for the BIG insurance rate hike..
(Liability, Automotive, & Workers Comp)
RATES ARE GOING UP, UP...

That's some of the stuff an Electrical Contractor has to put up with, or hire (and pay) someone to do it.
BTW, we average about 750K year, so I guess that makes "us" a small guy shop.
John

HotLine1,

Is that 750K per year before expenses such as payroll, material supplies to do the jobs, etc... ?

John,

That was one thing I DON"T MISS! To tell the truth, I stunck at the businees end of this trade. Lucky for me my brother was working for me and he went to college for accounting. He was a wiz at those books. He was one of my part time workers, He had another job and worked for me every Mon. and Thur. 1/2 day. My mom also helped out she was a bank teller. So between those two, they knew better and wouldn't let me near the check book.

Someguy:
No, it's $750K gross sales.

Harold:
Yes, the paperwork is a pain, specially at the end of the year. I use Quickbooks, it does mostly everything, except the NJ Tax Forms. Tried a few other programs, found Quickbooks, and have been happy. (You have to stay current with the Updates/Upgrades.)

I have an accountant, and see him twice a year.

Maybe, someday I'll pack in the tools, and do the AHJ thing full time?

John

From my experience, the main difference between an electrician and an electrical contractor usually comes down to scope and responsibility. An electrician is typically the hands-on professional performing installations, repairs, or maintenance under a contractor’s supervision. On the other hand, an electrical contractor can be a licensed individual or business entity that manages entire projects, handles permits, and ensures compliance with local electrical codes.

In Singapore, for instance, companies such as Electrician Singapore operate as licensed contractors who employ qualified electricians for both small-scale and large-scale projects. They ensure that all work meets the safety standards set by the Energy Market Authority (EMA). You can explore more about how licensed professionals handle residential and commercial wiring on this website, which provides good insights into professional electrical practices and compliance requirements in Singapore.

In Florida it is mostly a licensing and bonding issue. A "contractor" needs a contractor's license (experience level and testing required) plus a $75,000 bond. (may be higher now).
Anyone with a rusty pair if Kliens and a mouthful of wirenuts can call himself an electrician but he needs to work under the supervision of a licensed contractor.

A good way to look at it is this: the electrician does the work, the electrical contractor does the work and carries the business/legal responsibility for it. Exact rules depend on the state, but that’s usually the difference.

I think we got lost in the weeds and have lost our way.
What is the difference between an electrician and a contractor? The contractor is the one who finds the work, prepares the bid, signs the contract, gets the permits and inspections, schedules the job, brings in other contractors, and gets paid by the customer. He is the one who posts a bond, arranges credit with the supply house, gets the necessary certifications (BICSI, lead, asbestos, etc), signs off on the plans, carries the unemployment and workmans' comp insurances, holds the business license. He does all the stuff involved in running a business.
Look around and you'll find a legion of talented Sparkies who never learned to be businessmen. It's not that they are failures - they just never learned. Running a business is every bit as much a skill as becoming a tradesman. Alas, there's rarely any sort of apprenticeship, no four-year program teaching you the things you need. At the start, you don't even know where to go for the proper forms to use with your customers. You've never learned about contracts - not about what should be in them, what should not be in them, what you can reasonably negotiate. You haven't the slightest idea how to find a customer.
Different roles, different skills. That's why so many successful contractors lack trade skills -- theirs is a different skill set.
Here's another truth: Most "independent" contractors are beholden to some corporation. That is, they rely on getting business through one or two franchise agreements or large companies. You'll find, say, a contractor whose bread-and-butter came from installing cable TV for the local cable franchise, or did 90% of his work for a single property management firm.
The next "step" is the guy who has carved out a niche for a particular type of work. For example, he makes it a point to chase gas station or health care jobs.
The rarity is the guy who is able to cover the entire spectrum of electrical work - from pulling data lines to doing service changes. This contractor will have a file full of other contractors who will come at the first call -- guys to pour concrete, repair roofs, patch drywall, install air conditioning, and so on.
Think of what that entails. Apart from the tradesmen, people are needed to be AT the office, MEET the walk-in customers, answer the phone, accept deliveries. Someone needs to keep the books and do the payroll. You'll need a lawyer on tap to review contracts, prevent disputes, and advise you.