Guide
Licenses, Permits and Transitions in the Trades
Why licensing matters when a trade business changes hands, and which questions to raise early with the licensing board, your attorney and your CPA.
Many trades can only be practiced under a state license, and the license often runs through a qualified individual: the owner, or a licensed employee. When the business changes hands, the license usually doesn't simply transfer with it. The rules differ by trade and by state, so each business needs its own plan.
What to look at
- Trade licenses. Which licenses the work requires, and in whose name each is held.
- The qualifier. Who the license runs through, and whether that person will stay after the sale.
- Local licenses and permits. City and county business licenses, and permits for open jobs.
- Insurance and bonds. Policies and bonds the trade or your customers require.
- Vehicles and equipment. Registrations and any inspections tied to the business.
Questions to raise early
- Ask the licensing board what a new owner must apply for, and how long it usually takes.
- Confirm whether a licensed employee can serve as the qualifier for a new owner, and whether they would be willing to stay if ownership passed to the right person.
- Ask your attorney how open jobs and warranties are handled at the change of ownership.
- Ask your CPA about any license fees or bonds that should be settled before closing.
How Ojenta does it
- We comply with all licensing requirements. The buying company holds its own licenses, with a qualified licensee, before it does licensed work.
- We start early. The license application starts when the letter of intent is signed, alongside diligence, not after it.
- Work doesn't stop for paperwork. If a board hasn't issued a license by closing, the agreements provide a short bridge so customers are served without interruption, within the licensing rules.
- Qualifiers are planned for. Who holds each license, and whether they will stay, is settled before closing.
In short
Licenses often run through a person, not the business, and rarely transfer automatically. Start early and plan for the qualifier.
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Guides are general information, not legal, tax or financial advice. Talk with your own attorney and CPA.