If you’re starting a plumbing business or looking to expand, you might be tempted to ask: “Can I have someone else’s license cover my plumbing company?” You’re not alone—many new entrepreneurs hope to cut corners on licensing to save time or money. But this shortcut can land you in serious legal trouble, void contracts, and even trigger fines. In this guide, we’ll break down exactly why using someone else’s plumbing license is almost always illegal—and what you should do instead to build a compliant, trustworthy business.
Is It Legal to Use Someone Else’s Plumbing License?
Short answer: No.
In nearly every U.S. state, it’s illegal to operate a plumbing company under another person’s contractor license unless you meet very specific legal conditions (which we’ll cover below).
Each state regulates plumbing licenses through its Contractor Licensing Board or equivalent agency. These boards require that the licensed individual either:
- Owns the company, or
- Serves as the qualifying individual (also called the Responsible Managing Employee or RME) with direct oversight of all plumbing work.
According to the U.S. Bureau of Labor Statistics, over 75% of states require plumbing contractors to hold an active, individual license tied directly to their business entity. Simply “borrowing” a friend’s license—even with their permission—violates these regulations.
💡 Expert Insight:
“License loaning is one of the top enforcement priorities for state contractor boards,” says Michael Rodriguez, former investigator with the California Contractors State License Board (CSLB). “It undermines public safety and creates unfair competition.”
What Is a “Qualifying Individual” and How Does It Work?
Some states do allow a licensed plumber to serve as the qualifying individual for a business they don’t fully own—but this isn’t the same as “lending” a license.
Requirements typically include:
- The qualifying individual must be a W-2 employee (not a subcontractor).
- They must actively supervise all plumbing projects.
- They must be readily available during business hours.
- The business must list them on official filings with the state licensing board.
For example, in Texas, the Texas Department of Licensing and Regulation (TDLR) requires the qualifying agent to have “direct control” over plumbing operations. In Florida, the qualifying licensee must pass a background check and submit proof of employment.
⚠️ Warning: If the qualifying individual leaves the company or stops working, the business license becomes invalid immediately.
Risks of Using Someone Else’s License Illegally
Operating under another person’s license without proper legal structure exposes you to severe consequences:
| Risk | Potential Consequence |
|---|---|
| Fines | $500–$15,000 per violation (varies by state) |
| Criminal Charges | Misdemeanor or felony in states like California or Arizona |
| Voided Contracts | Homeowners can legally withhold payment |
| Insurance Denial | Claims denied if unlicensed work caused damage |
| Business Shutdown | Immediate cease-and-desist orders |
A 2023 report by the National Association of State Contractors Licensing Agencies (NASCLA) found that license fraud accounted for 22% of all disciplinary actions against plumbing contractors—second only to poor workmanship.
And if you’re caught, you may be barred from obtaining your own license for years.
Legal Alternatives to “Borrowing” a License
Instead of risking your business, consider these compliant options:
1. Become the Qualifying Individual Yourself
- Complete required apprenticeship hours (typically 4,000–8,000).
- Pass your state’s plumbing exam (e.g., UPC or IPC code test).
- Apply through your state board (fees range from $150–$600).
Pro Tip: Most states offer study guides and practice exams online. In California, for example, the CSLB provides free resources at www.cslb.ca.gov.
2. Hire a Licensed Qualifier as a Full-Time Employee
- Offer competitive salary + benefits.
- Document their role in company bylaws.
- Submit paperwork to your state licensing board to officially link them to your business.
3. Partner with a Licensed Plumber
- Form an LLC where the licensed plumber is a managing member.
- Share profits legally and transparently.
- Ensure compliance with state ownership rules (some states require >51% ownership by the qualifier).
4. Work as a Subcontractor Under a Licensed Company
- Provide labor under their license (with proper insurance and contracts).
- Build experience while preparing for your own license.
- Never represent yourself as the licensed entity to clients.
State-by-State Variations: Know Your Local Rules
Licensing laws differ significantly across states. Here’s a quick comparison:
| State | Can Non-Owner Be Qualifier? | License “Loan” Allowed? | Key Authority |
|---|---|---|---|
| California | Yes (as RME) | ❌ No | CSLB |
| Texas | Yes | ❌ No | TDLR |
| Florida | Yes | ❌ No | DBPR |
| New York | Only for corporations | ❌ No | NYC DOB / State |
| Illinois | Yes (with restrictions) | ❌ No | IDFPR |
Always verify current rules at your state’s official licensing website—not third-party blogs.
For a full list of U.S. contractor licensing authorities, see Wikipedia’s List of U.S. State Contractor Licenses.
Real-World Case: What Happened to “QuickFix Plumbing”?
In 2022, a Colorado startup called “QuickFix Plumbing” paid a retired plumber $200/month to “use” his license. They listed his name on permits but never involved him in actual work.
When a burst pipe caused $40,000 in water damage, the homeowner sued. The insurance company denied the claim because the work was done by unlicensed individuals. The state fined QuickFix $12,000 and banned its owner from contracting for 5 years.
The licensed plumber also lost his credentials for “aiding unlicensed activity.”
This case shows: both parties face consequences—not just the business owner.
FAQ Section
Q: Can my spouse’s plumbing license cover my business?
A: Only if your spouse is a bona fide employee or owner and meets your state’s qualifying individual rules. Simply being married doesn’t grant automatic coverage.
Q: What if I’m just doing small jobs under $500?
A: Many states (e.g., California, Arizona) exempt minor repairs under a certain dollar amount—but only if you’re not advertising as a “licensed plumber.” If you use phrases like “professional plumbing services,” you’re likely violating the law.
Q: Can I use a license from another state?
A: Generally, no. Most states don’t recognize out-of-state plumbing licenses. Some have reciprocity agreements (e.g., between Wisconsin and Minnesota), but you still need to apply for in-state approval.
Q: How long does it take to get my own plumbing license?
A: Typically 2–5 years of apprenticeship + exam prep. But many states offer accelerated paths for military veterans or those with trade school diplomas.
Q: What’s the penalty for working without a license?
A: Fines up to $15,000, possible jail time (in extreme cases), and inability to sue for unpaid work. In California, unlicensed contractors cannot legally collect payment—even for completed work.
Q: Can a corporation hold a plumbing license?
A: Yes—but it must designate a licensed individual as the qualifier. The corporation itself isn’t “licensed”; the person is.
Conclusion
So, can you have someone else’s license cover your plumbing company? Only under strict, legal arrangements—and never through informal “borrowing.” Doing it the right way protects your clients, your reputation, and your business from devastating penalties.
Investing in your own license or properly hiring a qualifier isn’t just compliant—it builds trust, credibility, and long-term value. Homeowners increasingly check license status online before hiring, and Google reviews often mention licensing as a key factor.
✅ Ready to go legit?
Start by visiting your state’s contractor licensing board today. Share this guide with fellow tradespeople who might be tempted by shortcuts—because a strong plumbing industry starts with integrity.
Found this helpful? Share it on Facebook, LinkedIn, or with your local trade association to help others avoid costly mistakes!
Leave a Reply