Utah Contractor Practice Exam

What is a legal method for a licensed contractor to work with an unlicensed individual?

1. Work as partners if the licensed contractor signs all contracts

2. Apply for a sole proprietorship contractor's license

3. Form a corporation and obtain a corporate contractor's license

4. Obtain a joint venture contractor's license

The correct answer is: Form a corporation and obtain a corporate contractor's license

A licensed contractor can legally work with an unlicensed individual by forming a corporation and obtaining a corporate contractor's license. This method allows the licensed contractor to establish a formal business structure through which they can take on projects and legally engage in contractual agreements. By forming a corporation, the licensed contractor is able to ensure that the business operates within the regulatory framework that governs contractor licensing, providing protection and compliance with state laws. In this arrangement, the corporation acts as a separate legal entity, which also helps in managing liabilities and obligations related to construction work. The corporate contractor's license allows the business entity to submit bids, enter contracts, and carry out work while adhering to the legal requirements set forth by licensing boards. This is crucial in maintaining the integrity and legality of the contracting work, ensuring that both the licensed contractor and the unlicensed individual can participate in projects under a regulated environment.