Business Entity ???

Hello All,

I am soon to be a licensed Florida Home Inspector. I currently hold a Florida Contractor’s License as well (active status under an LLC, although I am not currently contracting. Long story).

I want the business entity for my inspecting business to be a different name (that communicates “inspecting” and not “contracting”). For the time being and into the forseeable future, my business plans revolve around inspecting rather than contracting. FYI, I am NOT planning on offering contracting services to insection clients in case any of you were wondering.

So I have two choices… 1. Establish a new business entity for the inspecting business, and mothball the entity for the contracting business. Or 2. Legally change the name of the exising contracting business. There are pros and cons that I see for either choice, but I am relatively “green” when it comes to matters like this. I would like to see what the board’s feedback is on which way would be better.

Thanks in advance!


Personally I have S-Corporations for my companies, each a separate entity.

Though you may not actively be in the contracting business, I would keep the entity active in case you want company “B” to buy, rent, lease, etc; (anything) to company “A” the new entity, in the future. And vise-avers.

Definitely speak with a CPA or tax attorney, but this has worked well.

I have done the same. I kept the original company but have the inspection side as a d/b/a. There is advantages, such as insurance, two companies need two different insurance policies.

Same as j, setting up the inspection company as a DBA has allowed me to merge insurance and has some other advantages, like Dale said talk with a good CPA at the least

Thanks guys. That was what I was kinda thinking. One question I have about having both the contractors and home inspectors licenses in a single entity is do you assume more liability when making recommendations like “recommend evaluation and repair by a qualified/licensed contractor” on an inspection? Seems like unless you go to great lengths to disclaim yourself, there is potential for the client to assume since you/your company is licensed to do contracting work, your evaluation is that of a contractor. Maybe I’m over thinking it.

Thanks again,

The benefit of separate entities is all your assets aren’t kept in one basket. If all businesses are in 1 LLC, and the LLC loses in litigation all assets are exposed. See a lawyer in your area

Thanks again everyone. Going to meet with CPA next week.