ok so hear me out. my buddy is a carpenter, i'm a year out of vo-tech working for an electrical shop near asbury. we want to start an LLC on the side, register as a home improvement contractor with the state, and do bathroom refreshes, decks, and the "small electrical" like fixtures, outlets, fans. he says the HIC registration covers all of it as long as it's under the LLC. is that right? and what insurance would we even need for something like that? we're not trying to do panels or anything crazy
Electrical inspector (former contractor) · 26 years · Ocean County, NJ
Mentor✓ Accepted answer
Not legal advice, just how I'd look at it: as I understand NJ's rules, home improvement contractor registration is not an electrical license and doesn't cover electrical work. If you're paid for it, a licensed electrical contractor has to be the one running it. "Small" isn't a category in the code.
Call the Division of Consumer Affairs and ask them directly before you form anything.
HVAC contractor, owner · 25 years · Middlesex County, NJ
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Same in my trade. As I understand it:
- HIC registration covers general home improvement work
- Licensed trades (electrical, plumbing, HVACR) need the license, or a licensed contractor running the work
- An LLC is a business structure, not a license
Your buddy's carpentry side may be fine under HIC. Check with Consumer Affairs for your exact case.
Electrical Contractor · 22 years · Monmouth County, NJ
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Honestly that's how a lot of legit small outfits work. You pay the licensed EC, he pulls the permit and does or supervises the work. You learn by being on his jobs. Less money for you, but it's clean, and you're building a relationship with someone who might hire you or sign off on your hours.
Our teacher said something similar when a kid asked about LLCs. I wrote it down: the LLC is paperwork you filed, the license is a test you passed. Not his exact words, but close.
Foreman, Inside Wireman (IBEW) · 19 years · Morris County, NJ
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Also think about the fact that you already work for an electrical shop. Doing the same kind of work on the side, in the same area, is going to get back to your boss. Small state. Talk to him before you do anything; some owners will even help you find a path.
HVAC contractor, owner · 25 years · Middlesex County, NJ
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And on insurance, if you go that route:
- General liability for the LLC, with a carrier that knows contractors
- Every sub shows you a current certificate of insurance before they start
- Workers' comp if you hire anyone
Get quotes before you price your first job. It will change your prices.
update: talked to my boss like mbell said. he laughed at the LLC part, then said if my buddy lands bathrooms the shop will do the electrical and i can be on those jobs. so that's kind of a win?
Master Plumber, second-generation shop owner · 23 years · Hudson County, NJ
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One thing I'd push back on a little, thiago. Subbing out is clean, but a lot of the shops that sub for small outfits get burned on payment and stop doing it. Make sure the EC knows you pay on time, or you won't find one twice. My father stopped subbing for two GCs in one year over that.
Electrical inspector (former contractor) · 26 years · Ocean County, NJ
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It's the most common misunderstanding I hear. As I understand it, an LLC is about liability and taxes, and a lawyer or an accountant should tell you what it does and doesn't protect. It doesn't license anyone to do anything. Have him call Consumer Affairs too, so he hears it from them and not from strangers online.
this is basically what my boss's shop is. he's licensed, his brother does the carpentry under the same company. the license is the part that makes it work
my foreman says the same thing about plumbing. he says the fastest way to lose your shot at a license is getting caught doing licensed work without one. not sure if that's true word for word but he was dead serious