| Who to ask | Florida Department of Business and Professional Regulation, plus your local building department |
|---|---|
| What to file | A qualifier arrangement for the new owner, license applications or changes, and updated insurance |
| When | Start well before closing, because licensing can run on its own schedule |
Common snag: A business that keeps working under a seller's license after closing may be operating without proper authority.
The License Belongs to a Person
In Florida, many construction trades work under a license held by a qualifying individual. The company operates because that person qualifies it. When ownership changes, the license does not automatically follow the business.
If you are the qualifier, a buyer needs another way to be licensed once you step away.
Common Ways Buyers Handle It
- The buyer already holds a license and qualifies the company
- A licensed employee becomes the new qualifier
- The seller stays on as qualifier for a defined transition period
- The buyer applies for a new license before closing
Each route has its own timing and risk. Ask the state licensing board and your attorney which one fits your trade and deal.
Staying as Qualifier
Some sellers agree to stay as the qualifier for a short time. That keeps jobs moving but leaves you responsible for work you no longer control. Put the terms in writing, including pay, duties, insurance and an end date.
Do not keep a license tied to a company you no longer own without legal advice.
Insurance and Bonds
Liability, workers compensation and any bonds belong to the company or its owners. A buyer usually brings its own coverage on closing day. Ask your insurance agent how to handle open jobs and past work.
Open Jobs and Permits
Jobs in progress carry permits pulled under a specific contractor. The local building department may need an update when the qualifier changes. Make a list of every open permit and the contractor on record.
Warranties on finished jobs stay with the company, so a buyer will ask how many exist.
Questions Owners Ask
Can the buyer just use my license for a few months? Not without proper authority, and doing so can bring penalties. Settle the plan in writing before closing.
What if I am retiring and nobody here is licensed? Then the buyer must bring its own qualifier, or the deal may need to wait. Tell buyers about this early so they can plan.
Does the lender care? Yes. Lenders ask how the company will stay licensed after closing.
Timing
Start the licensing conversation as soon as you accept an offer. The sale can close on schedule while the buyer finishes paperwork, if the contract allows an interim plan. Storm season can add pressure, so avoid leaving it to the end.
Related Steps
Local tax receipts are covered on the business tax receipts page. For price factors, see roofing company values.
Deal terms for your own role are in transition and non compete terms.
This page is not tax or legal advice. Confirm each step with the state licensing board, your attorney or your CPA.
Want to know your range? Request a free valuation.