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#30998 11/05/03 11:13 PM
Joined: May 2001
Posts: 160
Look what the Board of Professional Regulation and the State Legislature has done to the small Electrical Contractor.
Changes in Workers’
Compensation Law
Due to recent changes to the Workers’ Compensation law, electrical
contractors who hold an exemption from workers’ compensation coverage
as a sole proprietor, or a partner of a partnership engaged in electrical
contracting, your exemption will no longer be valid as of January 1, 2004.
If you are a sole proprietor, or a partner of a partnership engaged in
electrical contracting and wish to maintain your exemption from Workers’
Compensation coverage, you must reorganize your business as a
corporation, registered with the Department of State, Division of
Corporations and you must be listed as an officer of such corporation, of
which you hold at least 10% of the stock in the corporation. Also, you must
form, available from the Department of Financial Services, Division of
Workers’ Compensation. Please refer to Chapter 440, Florida Statutes for
specific details of these requirements.
To change your electrical contractors’ license status from a sole
proprietorship, or partnership to a corporation, you must submit an
application to transfer a license to a new business entity - certified or
registered as applicable. You may obtain an application via the Internet by
visiting > Find an Agency > Business and Professional
Regulation > Professions and Professional Boards > Electrical Contractors’
Licensing Board > Application Packages and Individual Forms. For
assistance concerning transfer applications, please contact the Department
of Business and Professional Regulation, Customer Contact Center at
If you have questions concerning Workers’ Compensation Insurance
requirements, or need assistance obtaining an exemption, please contact
the Workers’ Compensation office nearest you. You may contact the Division
of Workers’ Compensation via phone at 850.413.1601, or via the Internet by
visiting > Find an Agency > Insurance >
> Worker’s Comp.
Jeb Bush
Diane Carr
Division of
Professions and Regulation
Electrical Contractors’
Licensing Board
1940 North Monroe Street
Tallahassee, FL
This is going to cost me almost $1000.00 to comply.

#30999 11/06/03 07:26 AM
Joined: Aug 2001
Posts: 7,520
It may not be much consolation, but things have been getting much tougher for anyone wanting to take on employees this side of the Big Pond as well.

The new legislation that has been pouring out of Whitehall and the EU in recent years means that many small companies simply cannot afford to take on staff.

#31000 11/06/03 10:18 AM
Joined: May 2001
Posts: 160
All I want to do is to operate as a one person sole proprietorship with my own insurance.I suppose that I am frustated with the State because they have passed laws that will eventually squeeze out the small EC.I have heard that other small Florida EC's are going to turn in their license and let the property owner pull the permits.

#31001 11/06/03 11:13 AM
Joined: Oct 2000
Posts: 4,035
Likes: 1

This legislation is against the sole proprietor. I thought that State Government in general was supposed to be supporting the Sole Proprietor and Small Business, but I haven't seen it where I am either.

One example is that Vytra (Big HMO Health Ins. Co.) recently went around and dropped all Sole Proprietors' policies for the sole reason that they had no employees. It didn't matter if they were a part of a larger group or not. The funny thing is that if the Sole Proprietor was to hire 1 Employee only 1/2 of the Company (1 person) would have to purchase Insurance from them. It's got to be some Statistical thing with them.

And the Ins. Companies that do accept Sole Proprietors are allowed to charge more than the One insured in a 2 person company pays. I thought NY had some law(s) passed to support the Sole Proprietor in this issue, but maybe I was wrong.


#31002 11/06/03 06:38 PM
Joined: Aug 2001
Posts: 7,520
Ah, sorry. I misread the first part this morning. shocked

Some sections of British govt. are set in their methods and tend to treat everyone as though he is an employee working for X hours per week at £x per hour. One-man self-employed bands often confuse them.

I'm assuming that a large-ish part of that $1000 is going to be to set up a new corporation. Have you thought about going off-shore?

I don't know too much about it, but I've heard that off-shore companies can sometimes end up being cheaper to maintain than domestic. Might be worth investigating, unless some other dept. insists that it must be a Fla. registered corp.

#31003 11/06/03 07:47 PM
Joined: May 2001
Posts: 160
I wish I could go offshore,way offshore,but the Corp must be a Florida registered Corp.
Today I had to payout $125.00 for a $25,000.00 bonding statement and $50.00 for a credit report on the newly formed Corp that is less than 2 weeks old!!!It is like starting all over.

#31004 11/06/03 09:19 PM
Joined: Apr 2002
Posts: 914
I don't see this as a bad thing. The first thing I did when starting my company was set it up as a corporation. It provides much higher insulation against liability and provide a different level of legitimacy. Anybody can buy a business license, but setting up a corporation shows that you're serious.

#31005 11/07/03 09:50 AM
Joined: May 2001
Posts: 160
Starting a sole prop or a corp in Florida requires almost the same paper work and expense(I know this now that I have been through both).I agree the corp is a good idea for an EC with employees.Having employees indicates more business that the sole prop can handle by himself and the EC should take the corp route for liability,insurance, etc.

#31006 11/07/03 06:35 PM
Joined: Aug 2001
Posts: 7,520
You have to go through a lot of expense to just set up as a sole proprietor in Florida?

I'm not counting things specific to electrical contracting like a master or journeyman license and things like that -- Just the actual formalities than anyone setting up as a sole proprietor in any sort of business would need to do.

#31007 11/07/03 09:14 PM
Joined: May 2001
Posts: 160
I know it sounds very harsh but it is true.When I passed my Unlimited EC exam I had to set up a sole prop and have the bank send a notarized letter to the State that I had $10,000.00 in a checking account in the Company's name.In addition I had to have $800,000.00 liability insurance plus a surety bond statement for $25,000.00.I also had to file for a fictious company name(Chris Rudolph's Power factor) that cost $50.00 plus a personal credit report that cost $50.00.None of these cost had anything to do with obtaining the license, that is another financial story.

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