I live in the lovely commonwealth of Massachusetts. I just had a meeting with an accountant about a few things. New hire, tax advice etc. He recommends I become a legal entity sooner rather than later. I was thinking of the whole advertising as only "your name licensed electrician" thing. Would this affect me being able to incorporate? I imagine since we as journeyman are allowed to pull permits and hire 1 apprentice, the state would allow us to protect ourselves by incorporating. Anybody run into this?
incorporating as a journeyman
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I'm not an accountant or an attorney but I don't know how one would affect the other.
I'm hoping you're correct. I tend to agree.
The company would be John Smith Electric Ltd. You would be John Smith, licensed electrician.
You are not the corporation. You can be a shareholder but the corporation is an entity unto itself. In terms of advertising, it doesn't matter. The corporation is set up primarily for tax purposes, to limit your personal liability and to make it easier to bring in new shareholders should you decide to expand your business in that manner.
I don't see why the state would dictate your business setup, be it proprietorship or corporation. I'm from Canada, though, so what do I know?
You are not the corporation. You can be a shareholder but the corporation is an entity unto itself. In terms of advertising, it doesn't matter. The corporation is set up primarily for tax purposes, to limit your personal liability and to make it easier to bring in new shareholders should you decide to expand your business in that manner.
I don't see why the state would dictate your business setup, be it proprietorship or corporation. I'm from Canada, though, so what do I know?
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In Mass as a journeyman your business name would have to be "John Smith Licensed Electrician". Only a Master can have a "business name" other than "their own name, licensed electrician"
I kind of like that idea. One question, Scott, what happens when a company employs a Master but the Master isn't a partner or shareholder?
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A journeymen cannot hire a master or another journeymen .
http://www.mass.gov/ocabr/licensee/dpl-boards/el/regulations/rules-and-regs/237-cmr-1800.html
18.01: Rules Governing Practice
(1) Two or more Journeyman electricians shall not associate as partners or otherwise engage in the business or occupation of installing, repairing or maintaining wires, conduits, apparatus, devices, fixtures, or other appliances used for light, heat, power, fire warning or security system purposes without obtaining the necessary Master electrician license.
(2) A licensee shall only engage in the electrical trade or otherwise conduct business in the name printed on his or her license. Any sign, advertisement or other business communication of a Master electrician (Class A) or Journeyman electrician (Class B) or Systems Contractor (Class C) shall indicate the type of license and the license number.
(3) All persons, firms, and corporations engaging in or working at the business of installing wires, conduits, apparatus, devices, fixtures, or other appliances for carrying electricity for light, heat, power, fire warning or security system purposes and employing learners and apprentices shall keep, or cause to be kept, accurate and detailed records of such employment for no less than seven years and shall permit the Board or its agents to inspect and copy such records upon request.
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Yes it sure does.:thumbsup:I like that! It keeps the Master at the top of the food chain.
Seems legit except the semantics. As was pointed out only your name licensed electrician would be legal.
Why doesn't it seem right? Its not like on every job site there is one master electrician to one apprentice. In Massachusetts anyway a business owner doesn't pull permits with his master's license. He uses his journey journeyman's and has to keep it up to date to do so.
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