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Zeke Zeke is online now
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Join Date: Jan 2002
Location: Long Beach CA, the sewer by the sea.
Posts: 38,264
I believe that building and home improvement contractors have the answer. It's called RME (reponsible managing employee) or RMO (responsible managing officer) here in CA.

I don't do this because I am a one man operation and repudiate the system. But the system supports rearranging the personell at will with any one person carrying the license for a given period.

So, if I have three brothers and we want to work together in the construction business, we form a corporation and one carries the license. If we get in trouble, we change the corp and send another brother up for the license. We abandon the first corp or BK it paying our debt to keep in good standing. When we run out of brothers, we send in an employee for the license. It can go on forever.

The only people who are required to be listed with the State Board are actual shareholders. Employees are free. So, as we use up family qualifiers, we just pay them with salary and bonus. As we use up hired qualifiers, we fire them. Eventually, everyone gets reinstated. Works bset with large minorty families. No reinstatement and they cry discrimination.

We self insure by placing a bond with the state and if a lawsuit occurs that looks like a bad deal, we disolve, reorganize and continue. Maybe out of state for awile. We get our worker's comp from State Fund. With no record of the new company, we start out each time at the base rate. Worker's comp is not affected by civil action regarding performance anyway.

20 years ago there were ads in the paper for contractor licenses for rent. Guys like me would qualify a new company with a notice. I think the only way that law has changed is that I cannot qualify another company if I own more that 20% of a first company. I'm not sure if they plugged the loophole there where I could still qualify 5 companies I own but not own more than 20% of each. I think they did close the hole for employees. An employee RME can only qualify the company he works for and then he must inactivate his primary license. But, they can't stop me from qualifying mutiple companies if I own part of them, AFIK

Perhaps doctors should take a look at the contractor system. Just another clinic name each time out and a new director. Everyone else is a no name employee getting profit sharing.

Last edited by Zeke; 07-21-2004 at 09:40 PM..
Old 07-21-2004, 09:33 PM
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