LLC vs Licensed Contractor

[Trevor Suich]

Hello all!  I've been reading several of the BiggerPockets books and listening to the podcasts for some time now, finally signed up for the forums with a contractor related question...

I've been doing a lot of rehab work on my home with the idea of eventually moving out and using it as a rental.  After discovering that my old shower walls were built with drywall instead of a more appropriate hardie board or cement board (that was a fun discovery), I started getting estimates from contractors for a complete tear out and replacement.  

When I asked my preferred contractor to show me his license, he shared with me a document (that I've verified on the Florida Division of Corporations webpage) proving that he's an LLC... however, I can't find his name or his business name on the Florida Department of Business and Professional Regulation website. What good is the LLC here? I know it protects the contractor, but does the LLC mean he's got a license to work as a contractor I'm not finding or that he simply is protecting himself from potential damages? Also, the LLC was created just under a month ago which raises another red flag to me...

Thanks everyone!

- Trevor

[Emilio Ramirez]

LLC is not a license. It is a business entity. That entity then needs to be licensed and in most cases insured. Your preferred contractor has taken the first step to becoming a legitimate concern but has a ways to go.