What is a legal way for a licensed contractor to work on projects with an unlicensed individual?

• A. Hire the unlicensed person as a subcontractor without a license
• B. Form a corporation and obtain a corporate license
• C. Have the unlicensed person obtain a work permit
• D. Use a consulting agreement only

Answer: (B)

In California, the license is tied to the business entity, not to any individual worker. That means the way to legally involve someone who isn’t licensed is to operate through a licensed business and have the licensed person supervise the work. Forming a corporation and obtaining a corporate license allows the business to hire unlicensed workers as employees or under proper supervision to assist with tasks that don’t require a separate license. The licensed contractor remains responsible for ensuring all licensed work is performed by someone properly licensed and within the rules.

This is why forming a corporation with a corporate license is the valid path. Hiring an unlicensed person as a subcontractor to do licensed work isn’t legal, a work permit doesn’t grant licensure, and a consulting agreement alone does not authorize the actual contracting work.