Financially Responsible Officer Registration

Are you a Florida contractor or looking to become one? Are you looking to qualify another business with your construction license? If so, you’ll need to designate a financially responsible officer. Learn more about what it is, how to do it, and how much it costs by reading below.

What’s a financially responsible officer?

In general, a financially responsible officer is someone who is financially responsible for a construction company. Florida requires that each construction company appoint one. Ultimately, this person is in charge of all financial aspects of the business.

Who can be a financially responsible officer?

Almost anyone can! In most cases, it’s the licensed contractor who owns the construction company. But what about when you’re using your license to qualify another construction company? Or what happens when your employer is using your license to qualify his or her company? In these cases, you’ll want to select another person to be financially responsible. Let’s take a look at the example below.

A friend or associate proposes a business partnership. He asks if you’ll qualify his business with your existing construction license. In return, he’ll pay you a portion of the proceeds from the partnership. However, you won’t be running the day-to-day operations. Remember, you have a business of your own to run! Would it make sense for you to be financially responsible for his company? In most cases, the answer is no. You’d want to designate your friend or associate as the financially responsible officer.

How much does it cost?

The good news is it’s free in most cases! However, when qualifying another business, the state cost to appoint an FRO is $200. Additionally, you’ll need to file a separate application to associate your license with the new business. You’ll also need a surety bond in the amount of $100,000.

Can The License Company help me appoint a financially responsible officer?

Absolutely! In fact, we’ve helped many contractors do this very thing. We take you from start to final decision from the state. We complete your application, compile the needed items, and submit it to the state on your behalf. Then, we monitor your application’s progress and assist with any follow up questions from the state. In most cases, we’re able to get you approved faster and cheaper than going it alone. Learn more about what we do or apply online today!