jklennon

I have recently passed the nc state electrical exam and I am filling out the paperwork to activate my license. I was planning to activate my license as a sole proprietorship for side work at first because I work for a large electrical contractor now. But if I do decide to later on (within six months) decide to take on a full time electrical business will my decision become difficult to modify into a corporation?

Next question is choosing a license name. I know that if I use anything other than my own name i will have to get a fictious name certification, is it worth the trouble of having to get a seperate bank account and all just for side work or should I just get the license in my own name for now and change when I go full time?

Last question. When naming my company will the name have to be my exact full name or would first and middle initials work before my last name followed by electric. ex J.D.Klennon electric. I just want to look at every angle before filing a dba. Thanks alot

jesse

paul d.

welcome and congrats !!!!!! might be time to get you a real CPA. some of the contractors here can help out with a few pointers.

Magnettica

I second the need for a CPA. He/ she will likely suggest becoming an LLC and to open a business account for the company. I'm new at this contracting business portion myself but that's what my accountant suggested and that's what I did.

Congratulations on passing the NC exam. I hear it's one of the toughest in the nation.

__________________

John Valdes

I was in a similar situation when I got a state contractors license in SC. I too was working for another company. Turns out I never used my contractors license or masters license. I still keep them active, but I have never used either one except for resume enhancers.
I could not see spending any money on a business that did not exist.

Ps.....The only reason I have a contractors license is because in SC. If you take your masters test through the contractors association you did not have to take the journeyman's first. I got my masters and contractors license and never tested for journeyman.

MarkyMark

Congratulations on passing the test! And welcome to the forum.

In NC if you activate your license with your own name as conducting a business part time , there is no charge to change it at a later date to a company name and full time status, as long as you are still the qualified individual. Just call Tonya at the NCBEEC. If you fill the form out with just your name now, and set up a corporation or LLC in the near future, it is no problem at all to change your license at a later date.

From a law or tax perspective, you probably want to talk to an accountant and a lawyer before you start up a corporation or LLC. I would think though, that you would want to have as much separation between the sole proprietorship and the corporation as possible. J.W. D!cks has a really good book you can find in the bookstores called "How to Incorporate and Start a Business In North Carolina" that was truly helpful when I first started out.

I don't think you can put the name "Electric" at the end of your name as a sole proprietor, as the name you fill out on the license form will have to EXACTLY match the name you conduct business as. It may seem like a petty thing, but the NCBEEC does not play around with this.

Once again congratulations and good luck.

Tyha

Did you pass the unlimited exam? If so which level are you going to activate. Its not easy to get your unlimited license activated. Do you have any experience pricing work? because right now with the work you may be going after (less than $50,000) its extreamly cut throat and you really need to know how to not only put a good number and bid package together but you need to know how to put it in at the least amount of cost possible. When I first started out ages ago there was alot of work going on and there was great room to recover from mistakes.

william1978

Congrats!! And welcome to the forum. What level did you pass limited,intermediate or unlimited? Where abouts do you live in N.C.? Who do you wor for?

jklennon

I only took the limited test. I barely had the hours for that because my previous boss went out of business and left the state.

thanks for the advice I went ahead and used my first and last name as the license name. I will just print electrical contractor below my name when I have my truck lettered.

I live in WNC near Asheville, I work for A-American Electric Inc. Its is really a great company.

I have an uncle that owns a company in Charlotte running Fiber optics.

william1978

I know several company's that are operating by the owners name. Good luck with starting your own deal.

Article 90.1

Just do a little bit of research about using the term "Electrical Contractor" anywhere alongside your company name. Across the mountain from you, here in TN, you can't use the term "Contractor" unless you have the full (as opposed to the Limited) license. But nothing really seems to matter here in TN as there are a few of us who try to follow the rules and scores more who don't and know better.

Personally, the very idea of any state having multiple levels of licensing is ridiculous, I maintain that you are either qualified or not, and the same potential dangers to persons and property exist for the limited, intermediate, and full contractor.

Congratulations on passing the exam! That is an accomplishment that you should be proud of. Enjoy the journey!

klennon

Here in NC any license classification will allow a listed qualified individual to engage in electrical contracting for the for the referenced electrical contracting license. Limited allows 600v or less 40000 dollars or less per job.

Article 90.1

$25 K per project here, but many of the cities do not recognize the TN LLE, what's worse is many of the cities will recognize the "CE" (Contractor Electrician, yes I know they name it backwards...), but only after you duke them several hundred dollars, and a bond in that cities name. How about I've got the state license, I should be able to pull permits within the states boundaries???

***rant over.

MarkyMark

It is kind of silly as far as taking the test is concerned. I've taken all three tests, and they are about 90% the same anyway. I actually thought the Unlimited test was the easiest.

The multiple levels of licensing actually have more to do with showing the ability to bond higher dollar jobs. That part makes a little bit more sense.

william1978

Really. I always wondered. I took the unlimited test and was curious how the other test were.

MarkyMark

Yeah, the intermediate and limited were exactly the same test as far as I could tell. I took each test as soon as I had the hours to qualify, so I took each test about a year apart. The unlimited test had fewer service load calculations, and more general questions dealing with 600+ volts. Maybe a few more accounting or business type questions as well.

william1978

Which one do you have active?

r_merc

Any advertising must be in the exact wording of your license. Trust me on this the board field representatives will check. And I do mean any. I was warned by the Field Representive while I was getting a permit that my T-Shirt didn't have the complete name on it. Choose your Company Name carefully as in NC your cannot deviate from it.

william1978

Which county were you in?

Russell1200

If you do commercial work the unlimited is easier in NC. You don't have as many single home residential type questions, and the 600v+ questions are actually easier because it narrows down the section of the code book in which you need to look for the answers.

Since you are using your name, I don't think you are going to have problems. But you can also check with the Secretary of State's web site to check to make sure someone else is not using the name.

You will likely need to get a business license in the town you are working in. Be sure to factor the time and money to do this, as many towns will not let you pull the permit until you have this license.

In NC it is the company that is licensed, but they need a qualifier. Thus I believe it is relatively easy to transfer to a new corporate structure and a company new name. That is not true of other states.

If you are working for someone else, they will generally let you get a part-time limited license. They will not let you get a higher level license if you are working for someone else.

And yes! Congratulations!

r_merc

Camden Co.