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There is no requirement for a qualifier to own a percentage of the qualified business.
There is no requirement that the qualifier of your construction business must have an ownership interest in your company in order for the DPBR to approve the qualification of your business.
This misconception arises from the supervision requirement imposed by the DPBR. The DPBR has indicated that when the qualifier owns 20% of the business or is otherwise paid as a W-2 employee, such qualifier is incentivized to supervise the construction aspects of the company, and will not be an absent qualifier. Therefore the DPBR will not require such qualifier to attend a one-time meeting to explain the proposed construction supervision framework of the additional businesses.
However the Fla. Administrative Rule on this issue clearly does not require ownership of the qualified business, or that the qualifier be employed as a W-2, provided that there is “[o]ther evidence of the means and methods utilized by the applicant to ensure control over the construction work of the proposed additional entity.“
The administrative rule states as follows,
61G4-15.0024 Supervision of Business Entities.
Documentation of one or more of the following factors in an application to qualify a business entity will demonstrate to the Board, absent evidence to the contrary, that an applicant possesses the ability to properly supervise the proposed additional business entity for purposes of the application:
(1) The applicant to qualify an additional business owns 20% or more of the business to be qualified;
(2) The applicant to qualify an additional business is a W2 employee of the business to be qualified; or
(3) Other evidence of the means and methods utilized by the applicant to ensure control over the construction work of the proposed additional entity.
Rulemaking Authority 489.108, 489.119 FS Law Implemented 489.108, 489.119 FS History–New 5-2-12.
Moreover, the DPBR addresses this issue on its website stating,
What are the requirements for a contractor to qualify more than one construction business?
Published 12/15/2010 08:55 AM | Updated 10/01/2019 03:47 PM What are the requirements for a contractor to qualify more than one construction business?In order to qualify an additional business entity, you must attest to your supervisory ability for each business.
If you do not own 20% or more of the proposed business, or if the approval of the application will result in you qualifying three or more businesses (regardless of whether or not you already qualify three or more), you will be required to appear in front of the Board.
However, the mandatory board appearance may be waived if the applicant can demonstrate that they are a W2 employee of the proposed business, and the proposed business is either currently qualified or was previously qualified within 90 days of submission of the application. The mandatory board appearance will not be waived if, upon approval of the application, the applicant will qualify 3 or more businesses.
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