Where Should I host my GC license?

Question

Hello Everyone.

I have about 7 years of construction experience and I am going to be taking the test to get my General Contractors License soon in the state of Minnesota.  The question is, should I host my license under the LLC that is doing the BRRRRs or under another LLC entirely?  I would love to hear the pros and cons.  I would love to hear how you do business.  Thanks!

Nate Sanow · Answer

I’m not a GC but I have an Scorp for my realtor business and keep that very separate from the llc’s I have that hold property. It’s not that hard to have 3 entities for me, and I’d suggest getting an extra one. Besides legal reasons, which I don’t worry about, it will keep taxes and accounting issues clean and tidy, which will really matter. Basically your holdings give you losses but you jeopardize that if you profit as a GC in the same entity. Seek out a CPA to verify that, but that is my understanding. Best wishes.

Andrew Postell · Answer

@Forrest Holden thanks for posting.  Generally speaking this forum is for the BRRRR method - how to do it, finding properties, etc.   So if you need some contractor specific assistance I would recommend posting this same question in the Contractors forum. You should have some better responses there.  Also, this might be a more local question too....in Texas, GC's don't need licenses...so maybe try joining some Minnesota contractor facebook groups.  That also might be worth doing as well.

Hope this makes sense.