KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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More on holding license for company you don’t own
January 30,  2025
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More on holding license for company you don’t own
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Ken
     I'm currently part owner of an alarm system company. I hold the New York State licensing for Fire and Burglary. I was recently contacted by a friend who has started his own company in the Maryland area and wants to do work in the NY area as well. He asked if I would use my License for his company to work in NY, and how much I would charge. I googled it and came upon your article. I myself have worked for alarm companies as well as Underwriters Laboratories in certificate services so I'm very familiar with your company. I was wondering if you could help me with this?
Thank You. 
Robert
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Response
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          As I pointed out in the January 13, 2025 article, holding a license for another company should raise plenty of concerns and questions. Licensed jurisdictions each have their own requirements and enforcement policies.  The duties of the license holder differ state to state, as do the qualifications of the license holder and the criteria for holding the license as it relates to the relationship with the company. 
          The Division of Licensing Services, part of the New York State Department of State, issues licenses and is responsible for license enforcement.  A license holder does have responsibilities and the DLS will prosecute those who fail to perform their obligations.
          The Qualifier Agreement provided by K&K provides for a monthly fee and if you have to actually do anything an hourly rate, which will exceed minimum wage.  Doing anything would include apply for the license and following up with that application; dealing with any issues raised by the licensing agency and doing any work that is required of you to properly perform your licensed activities.  If your separate company does subcontracting work for the company you license it will be an independent contractor; that company will be paid as a 1099 contractor.
          As the license holder you will be responsible for all licensed activities.  If you or the company you license fail to adhere to license requirements you risk, suspension or revocation of your license, and not just the license for the company but the license for your own company; you won’t lose one and not the other.  You risk civil penalties and fines from the licensing agency and potential criminal prosecution.  Bottom line is that the license holder needs to take the responsibility seriously.            
        The company needs to be careful as well, because in addition to the above consequences the company could find itself ineligible to continue licensed activities in the state, and that could potential carry over to other states.  Follow the rules, the specific provisions in the K&K Qualifier Agreement, and you and the company should be fine.
        The Alarm Exchange has a category for license holders looking to qualify for a company and companies looking for qualifiers.  You are all at liberty to list on The Alarm Exchange.  For those preferring a bit of anonymity and discretion K&K's License Coordinator Eileen Wagda maintains a current private list of qualifiers and companies; you can get on Eileen's private list by contacting her at 516 747 6700 x 312
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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301
ken@kirschenbaumesq.com
www.KirschenbaumEsq.com