How Does A Change In Business Entity Impact A Construction License?
As Lakeland construction attorneys, we know that there are plenty of reasons a business entity changes, such as a new sole owner to the corporation or a new partnership to the corporation. When a business entity changes, or when a change occurs within the business structure, a new license is mandatory. Because licenses are correlated with a business entity and not the qualifier, they are not able to be moved from one business to another.
Sole Owner Licenses
A sole owner license can be furnished to a particular individual and they can also be qualified by the owner or a Responsible Managing Employee (RME). This particular license is not allowed to be sold or given to another individual.
A partnership license is issued to a particular General Partnership or Limited Partnership structure. These licenses are allowed to be qualified by a qualifying partner or an RME, however the qualifying partner is required to be a general partner of the partnership makeup. An RME is not deemed a part of the partnership makeup because they are a company employee.
General Partnership Licenses
A General Partnership license is composed of at least two general partners. In the case of a general partner or a qualifying partner vacating the partnership, that partnership license must be nullified. In a General Partnership, partners are not allowed to be added or deleted from a partnership license. Instead, a new license must be acquired.
Limited Partnership Licenses
A Limited Partnership license is composed of one or more limited partners and one or more general partners. The role of a limited partner is to be accountable for a company in extent to their monetary appeal. In the case of a general partner or a qualifying partner vacating the partnership, that partnership license must be nullified. General partners are not allowed to be added or deleted from a partnership license, instead a new license must be acquired.
With corporate licenses, a license number is given unshared to a particular corporate registration number allocated by the Secretary of State’s Office. In the case of this registration number changing, a new contractor license number is needed for the new corporation. If a corporation dissipates the contractor license is required to be canceled.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.