Your accountant looks after the financial and business structure. We look after the builder and trade licensing requirements.
As a builder or trade contractor business grows, there often comes a time when you will need to review how the business operates.
This might involve moving from a sole trader to a company, introducing new directors, expanding into other states or upgrading existing builder or trade licences.
Your accountant is often the first professional you speak with about these changes.
Your accountant will advise on the financial, taxation and business implications, however changes to your business structure can also affect your builder or trade contractor licensing arrangements.
That’s where Construction Licensing can assist.
Changing from a Sole Trader to a Company?
One of the most common situations we see is a licensed builder or trade contractor moving from operating as a sole trader to a company structure.
Your accountant may recommend establishing a company for taxation, asset protection or business growth reasons. It is important to keep at front of mind that your individual Builder or Trade Contractor Licence does not automatically transfer to your new company.
Operating under your individual same licence number in many cases is not meeting licensing compliance.
In Queensland and New South Wales, a company generally requires its own contractor licence to undertake regulated building or trade work.
Depending on the state and licence class, there may also be additional requirements relating to nominated supervisors, qualifications and financial eligibility.
Getting the timing right is important, particularly where the business has existing contracts or intends to continue trading through the new entity.
When Should You Involve a Licensing Specialist?
Ideally, licensing should be considered in conjunction with changes to your business structure, and proactive steps for licensing are finalised BEFORE the new entity begins contracting for regulated building work.
Other circumstances where specialist licensing advice may be beneficial include:
- Company restructuring: Changing business entities, directors or supervisory arrangements.
- Business expansion: Upgrading existing Builder or Trade Licences to undertake a broader scope of work.
- Interstate operations: Establishing appropriate licensing arrangements in Queensland, NSW or other states.
- Business acquisitions: Reviewing licensing requirements when purchasing or taking over an existing construction business.
- Company licensing: Assessing the requirements for a new company contractor licence, including appropriate supervisory arrangements.
Early consideration of licensing requirements can help avoid unnecessary delays and disruption to business operations.
Working Alongside Your Accountant
At Construction Licensing, we regularly receive referrals from accountants whose building and trade clients require specialist licensing assistance.
We understand that licensing applications sit outside the usual scope of accounting services.
Our role is not to replace your accountant’s advice, but to work alongside them where appropriate.
Your accountant can continue to advise on business structures, taxation and financial reporting, while we focus on the relevant licensing requirements and application process.
For Queensland companies, this may also involve coordination around the QBCC’s Minimum Financial Requirements (MFR), including financial information and reporting obligations relevant to the proposed licence.
By working together, we can help ensure that licensing requirements are considered as part of the broader business decision.
Supporting Accountants and Their Construction Clients
With more than 30 years of experience in building and construction licensing, Construction Licensing provides specialist advice and application assistance for builders, trade contractors and construction companies.
We assist with individual and company licensing, licence upgrades, supervisory licensing and interstate licensing arrangements.
Whether you’re an accountant advising a construction client or a business owner considering changes to your operations, we can provide practical guidance on the licensing implications.
Our approach is collaborative, with a clear understanding of the different professional responsibilities involved.
Planning Changes to Your Construction Business?
Before changing your business structure, upgrading your licence or expanding into another state, consider how those decisions may affect your licensing arrangements.
Construction Licensing offers an Initial Licensing Consultation to review individual licensing requirements, along with specialist Corporate Consultation services for businesses with more complex licensing needs.
Accountants are welcome to refer clients directly or participate in discussions with their client’s approval.
Make An Enquiry Contact Construction Licensing to discuss how we can work with you and your accountant to address your building and trade licensing requirements
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This article provides general licensing information only and does not constitute accounting, taxation, legal or financial advice. Business owners should seek advice from their accountant and other relevant professionals before making decisions about business structures. Licensing requirements vary according to the jurisdiction, licence class and individual circumstances.
