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Dear Davida:
In order to engage in the construction contracting business in Florida,
corporations (including S corps) must apply for a Certificate of Authority
(also known as a Qualified Business License) through a primary "qualifying
agent" with the Department of Business & Professional Regulation. A
qualifying agent is a certified or registered contractor and is typically an
employee and/or manager of the corporation.
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The qualifying agent must have both supervisory authority and final
approval authority for all of the construction affairs of the business. If
the contractor lacks financial responsibility for the company, the company
must designate a Financially Responsible Officer to take financial
responsibility for the company. (The Financially Responsible Officer must
have a bond in place to insure financial obligations that may result from
construction work and complete a Financially Responsible Officer application
to be submitted to the Department of Business & Professional Regulation.)
If you hire your former employee and appoint him as an officer of the
corporation, you would be able to designate him as the qualifying agent for
purposes of obtaining the Certificate of Authority so that the corporation
can engage in construction contracting. An employee, by definition, is
compensated for services rendered on behalf of the corporation, so you would
have to agree on compensation. As an employee of the corporation, his salary
would be subject to tax withholding like any other employee.
For the most up-to-date information on Florida construction industry
licensing or to obtain an application for a Certificate of Authority
(Qualified Business License), visit the Florida Department of Business &
Professional Regulation's web site at
http://www.myflorida.com/dbpr/pro/cilb/index.html .
Chrissie Mould
About the PowerHomeBiz.com Guide:
 Chrissie
Mould has over a decade of experience in business administration and
startup business consulting. She has helped launch companies in multiple
industries and has managed corporate administration and governance for
public and private companies. She is an incorporation specialist with
MyNewVenture.com LLC. The company provides low-cost incorporation services
to entrepreneurs and small businesses. Visit
www.MyNewVenture.com to form
a corporation or LLC.
The opinions expressed in this column are those of the
author, not of PowerHomeBiz.com. Users should not treat the Guide's response as
legal, accounting, or professional advice as all answers are intended to be
general in nature. Such advice can only be properly given by qualified
professionals who are fully aware of a user's specific geographical areas or
circumstances, such as an attorney or accountant.
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