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can i subcontract under a workmates flatglass business


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so im in cali i do alot auto and have done a bit of fg here and there. i sub out for various peoples one of whom just got his contractors liscence to start doing com and res. he thinks i need to have a contractors liscence to to work with him, even though ive been subbed out to other glass businesses through another buddy a few times without an issue from them. basically im just trying to get some clarification. I can sub out to a legit contractor thats bonded and insured and still be 1099d cant i?

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If you lack a Contractor's License you're limited to the hourly wage as you cant "contract". I'm guessing he'd rather not carry Workman's Comp on someone who just comes in for certain jobs.

So in essence you can't contract and he can't escape having the government characterize you as an employee.

But if you had a license you'd personally not be required to carry Workers Comp by filing and exemption certificate stating you have no employees (other than family).

 

Bur. & Prof. Code §§ 7026 and 7026.1:

 

California law requires that all persons who act as a "contractor" on behalf of a property owner or other person and who performs work or installs fixtures on a property other than for hourly wages must be "duly licensed" as a contractor by the Contractors State License Board,

 

"Contractor" includes subcontractor and specialty contractor.

 

Bus & Prof Code § 7031 provides in relevant part that:

A. Contractors Who are Not Properly Licensed Cannot Sue to Get Paid.  (Seen it happen).

And for the Contractor:

Aiding & Abetting an Unlicensed Individual to act as a licensed Contractor is a violation of California Business & Professions Code § 7114.

Aiding & Abetting an Unlicensed Individual to act as a licensed Contractor is one form of Renting a Contractor's License. One of the Contractor State License Board's top enforcement priorities is to prevent Renting of a Contractor's License.

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