@Jay Hinrichs, I really appreciate your second and even more thorough post about this topic. Thanks to you, I have already called the State and I personally will be working on getting our GC license (will be setting up our LLC to cover us both), while Brian continues to work on our first official flip. Now that I have thoroughly assimilated this reality (which initially bummed us out), we have decided it will behoove us on several fronts to be sure we're doing everything on the up and up. Regardless of a possible $5,000 hit, we just want to be covered and not feel like we're skulking around or have something to hide. The other plus is it will cover us if my husband wants to do an excavation job or make a cement countertop for someone (his new passion). Basically, we will have other income options should we ever need it, which is a good feeling of security. We'd also be covered with insurance and a bond. I mentioned we have a relative in Oregon who does not have their contractor's license who does flips. I spoke to him about this on a visit this weekend, and he didn't actually know this and they've done many many flips. I got the feeling he really just didn't want to know it. But I think it got him thinking. Anyway, much appreciated that you brought this to our attention. It's a hassle and an expense but we are serious about what we're doing, and will be well worth it.