# How much is the Master License worth???



## Sparkman1234

Today my boss propositioned using my Master's license. Long story short, he is buying the company, doesn't have his masters license, and is using the previous owner's license until the company is paid off. This works because the previous owner is technically a full time employee until the company is completely bought off, which will expire soon. 

The problem that I have is that I have started my own small company on the side to make a little extra money legit, and I would have to throw that out the window in order to be on board with this. Someone, who I respect a lot told me that I should never let someone else use my license unless that put a large price on it. The question is, what do you guys think it's worth? Another note: I haven't told my boss that I've started my own company either. I wonder if he ever browses this board? I'm thinking I'll find out soon if that's the case.

Thanks for your input.


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## kbsparky

How much is it worth to you? Master electricians who assign their license to a company can make plenty just by being the company representative. But as you said, you may not be able to operate independently if you do so. 

Check with your business attorney on this aspect, because some jurisdictions do allow a license holder to represent more than one company. But I think the license holder has to be a majority shareholder to do so .... :001_huh:

You could arrange for a specific time period, such as 5 years, with option to renew after that period, or walk away and start your own biz .... just thinking out loud here ...


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## B4T

I would never take a chance with my license unless I talked to an attorney and the AHJ who issued the license..

It is possible you could be breaking laws you don't know about by letting your boss use you like that..


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## Island Electric

I think it is worth over a 6 figure salary, a promotion to project manager and leave your tools at home. If you are not getting over 6 figures for 40 hrs he is just using you. Don't forget a company car too.


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## wildleg

How big is the shop ? If the boss approached me like that, I might say something like - How about you take me out to (insert nice steakhouse here) next Friday for dinner and we'll talk about it ? Sleep on it for a few days, ask around (like you are doing), talk to the wife, and decide what it is worth to you. IMO it is worth a piece of the action, but that can be a lot of things. Everything is negotiable, and it would be better to do it for less than it's worth than not at all. When you sit down the very 1st thing I would hit him with is the fact that you had planned to go out on your own eventually, and already had everything in place, including your own company and insurance etc, and you will now have to dismantle that in order to do this, so without a piece of the action it wouldn't even be practical, but with a piece of the action you still already have out of pocket expenses that need to be recovered, so I agree with the above idea about maybe a 5 yr contract, profit sharing, and by virtue of some action, maybe you are possibly a partner in 5 yrs or maybe you go your separate ways in 5 yrs. You definitely need a plan and you need to be able to hold up your end of the bargain. JMO


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## sbrn33

good post wildleg. I didn't know you had it in ya


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## Modern Castle Inc.

In Massachusetts, the licensee has to sit on the board of directors for the company


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## hardworkingstiff

In NC, you are responsible and you need to have the final control on the electrical work.


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## Sparky J

Do what you think is right for you after considering all options and remember if the [email protected] hits the fan it could possibly (and more than likely) be your ass. Check the rules and reg.s there and cover yourself. Good luck.


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## brian john

Talk to a lawyer.


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## Podagrower

Well, I'm glad not to be the only one in this situation. Every state has different laws regarding what is required to qualify a company, or more than one company. So finding out whether you can qualify 2 companies is pretty important. If I had to fold my business for my boss to use my license, it would be much more expensive for him. But remember that if either business does something to cause your license to be revoked, both companies may be without a license.


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## Outdoorguy

In the state of Texas, you can master for one company and own (and use the master license for) another company as long as long as you own over 50 percent of the company. I had to call the state for that info.


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## mdfriday

Do the dinner thing mentioned above. 

Let him know you want to consult with an attorney, insurance agent and accountant. All of these cost *will* be covered by the company. Make sure that all costs pertaining to you "Partnering" will be covered by the company.

As far as salary, I would at least want an increase equal to what you are making on your own, that is your "opportunity cost" at this point. 

Make sure risk is limited / negated via insurance.

Have the attorney make some sort of agreement (with out it being actual partners)

Also, keep in mind, licensees are replaceable, just like employees.


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## Tiger

The license is worth what you can get him to pay for it. Let him make an offer. Personally, I wouldn't bother consulting with any support professionals until I had heard an initial offer.


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## sparkie2010

In Florida license holder is liable for any neg outcome due from the company action. If the company does not pay there bills or liens etc license would be on the line. 

Its not just a few extra bucks a week. You would need to start filling in owner shoes. Watch the finances. Inspect jobs, everything. 

Their are a few guys that are doing out here and they will say that I'm wrong. However I can forward the Florida document and educate them.

Good luck.


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## Cp30

Would send me more information on it. My boss just asked me to be hus master electrician and use my license


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## electricguy

wow a 7 year old thread


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## Going_Commando

electricguy said:


> wow a 7 year old thread


I did a double take when I saw a reply from B4T. RIP, bucket man.


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## Southeast Power

Cp30 said:


> Would send me more information on it. My boss just asked me to be hus master electrician and use my license


Hus Master? He wants you to be in charge of the beer??


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## Tonedeaf

I would be realistic....you can't get blood from a stone.

If I was in your position....I would do your salary plus 3-5% gross sales of company; *paid quarterly*.

I base my end on the gross sales because your boss can play with profit %.

that would be 30,000-50,000 extra per $1M in sales per year.

gives you extra Money without the headaches of running a business.

Your boss can roll that into his cost of doing business.

I would want a 1 year renewable contract.

This would be supplemental income...so i think it gets taxed at 22% on federal level you gota talk to an accountant.


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## MechanicalDVR

Southeast Power said:


> Hus Master? He wants you to be in charge of the beer??



We can all hope it's only beer he wants to have a Master for!


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## MechanicalDVR

Cp30 said:


> Would send me more information on it. My boss just asked me to be hus master electrician and use my license


First off, welcome aboard @Cp30!

Secondly, you realize that it's illegal in some locations to sell your license, per se? 

The licensee needs to own 20% of a business normally to have the company operate under his license in most locations.

That said it's usually worth an absolute minimum of $10k.

As has been posted I think a percentage of gross sales would be the way to go after having a lawyer draft the contract.


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## The_Modifier

Cp30 said:


> Would send me more information on it.


Try filling out your profile- oh and stop necro posting- 7 year old thread? Really?:vs_laugh:


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## cdslotz

Why can't bossman get his own licence?

Why didn't bossman see this coming a long time ago?

Sounds like bossman is lazy and a procrastinator


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