- August 7, 2023
- Posted by: admin
- Category: Blog
In short, NO you may not. It is illegal to rent, use and/or work under someone else’s Florida contractor license as it states in Florida Statutes Section 489. There may be some wiggle room when you work as a sub contractor as it states in:
F.S. §489.113(2) where it states that subcontractors working within the scope of the contractor’s license are exempt if a state license is not required. For example, if a licensed general contractor employs a subcontractor to perform concrete placement work, and the contractor supervises and takes responsibility for the subcontractor’s work, the subcontractor need not be licensed. This exemption does not apply to plumbing or other subcontractors whose work requires a state license. The close supervision that must be exercised over independent contractors to comply with F.S. §489.113(2) appears to contradict the federal definition of an independent contractor,37 but no case or scholarly article has been found to shed any light on this interrelationship.
Outside of these very small and limited scenarios, if you are the primary project manager (i.e. general contractor) in a project, you “can not” use someone else contractor’s license in the state of Florida.
Why Is It Illegal? Let’s explore the top few reasons.
- It’s The Law: Simply put!! But if you wish you ask what are the “financial” and “liability” reasons this law was put in place, consider this……
- Liability issues: Let us say you are a licensed contractor and you sub lease/rent out your license illegally, you have now exposed your self to extreme financial risk and liability. As the person responsible for the work being done under the license that you have subleased to another person, you are now responsible for any resultant damages or legal issues caused by that person. This could result in costly lawsuits and fines that would be your responsibility to pay, regardless of whether the license owner is at fault or not.
- Reduced Work Opportunities: Contractors who sublease licenses often lack the necessary experience and reputation required to secure work independently; as many clients prefer working with contractors who have their own license. In these cases, finding additional work can become difficult and challenging for subleased contractors.
- Severe Penalties: Subleasing a contractor’s license is illegal in Florida and the violation of any of the state’s laws or regulations could result in severe penalties. This includes anything from suspension to permanent revocation of your license, as well as hefty fines.
The Bottom Line
At the end of the day, subleasing someone else’s contractor’s license is often not worth the risk, carries to much liability to all parties and most importantly you are breaking the law as it is illegal. It may seem like a convenient solution at first, however it can quickly lead to expensive and lengthy problems down the road. If you are looking to start your own contracting business, the best option is to apply for a license yourself. This will enable you to obtain more work opportunities and protect yourself from potential liability issues.
This is why we here at LicensesETC are here to help you get your Florida Contractor’s License fast. We provide a proven process to get your application forms quickly and efficiently through the state application process and approved. Contact us today to learn more about how we can help you get started!
We hope this article was helpful in breaking down the risks associated with subleasing contractor’s licenses in Florida. If you have any further questions,