Bronx, NY asked in Real Estate Law and Construction Law for Florida

Q: Want to become a general contractor (FL) to get a permit for dad to build houses. What are the risks?

I reside in NYC. I want to take the test to get the general contractor license in Florida. Then I want to apply for a permit for a family friend to build houses. What are the liabilities/risks for me? I'm thinking of establishing an LLC to be more protected.

1 Lawyer Answer
Phillip William Gunthert
Phillip William Gunthert
Answered
  • Orlando, FL
  • Licensed in Florida

A: You definitely need to create a business entity (LLC would be a great choice). I would strongly advise you to work with an attorney in order to create the LLC, create the LLC Operating Agreement, understand liability protection and how you need to go about it in order to maximize the liability protections available to business entities if properly set up and run. Things like, more than one owner of the LLC, create separate business account, carry proper liability insurance, do not commingle personal and business accounts and funds, properly fund the business and so forth. There is no reason to wait on setting up your Florida LLC and applying for your EIN and so forth. You are thinking correctly in setting up a business entity for increased liability protections if done properly. Also, since this is going to be done in Florida, you might as well set it up in Florida, otherwise you need to register as a foreign business doing business in Florida, or maybe you set up one LLC in NY and another in FL. as an option, there are many things to consider and weigh.

Seril L Grossfeld agrees with this answer

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