PARTNERSHIP / CORPORATION

PARTNERSHIP OR CORPORATION

An existing partnership license cannot be reissued (transferred) or sold. A corporation can.
A partnership license will be cancelled upon the death or disassociation of one partner. This will not occur with a corporation.
Partners cannot be replaced, but you can replace officers of a corporation.
A partnership cannot change partners. A corporation is not limited to the same requirement.
When a partnership license is cancelled, the surviving partners must apply for a new license number. Corporations may continue with same existing number.
After five years, partners may be eligible for a waiver of the examination. However, the original partners must share the same license, or apply for a new number. A corporation license will remain the same. Any one officer can keep it.

A corporation will cost a little more to set up, but it is much safer to conduct business.
A corporation may be formed with one individual: President, Secretary, or Treasurer.
A personal license number may be reissued (transferred) to a corporation. Otherwise, a new number will be issued.
The ‘S’ Corporation is preferred. It removes double taxation. Income may be reported as individual income.
A Limited Liability Company (LLC) will be approved by the Contractor’s Board. However, the Board will require a LLC Employee/Worker bond in the amount of $100,000.00 effective 01/2012.
A corporation license number may be reassigned or sold. It can be passed on to family members for generations.
Officers are usually not personally liable for claims against a corporation. Creditors may claim only the corporate assets.
Officers may be added or deleted to a corporation. There is no limit.
After five years, officers on the license are eligible for a waiver of the examination. Qualifying individuals can be replaced.