Financial Statement Policy for General & Mechanical Contractors

SOLE PROPRIETOR:

If applying as a sole proprietor, the Board will accept a financial statement in the individual or the company’s D/B/A name.

Example: Sam Jones (Sole Proprietor) or Sam Jones Superior Contracting (Sole Proprietor) or

Superior Contracting (Sole Proprietor)

GENERAL PARTNERSHIPS:

If applying as a general partnership, the Board will accept the financial statements of the general partners and the partnership entity, if any.

LIMITED LIABILITY PARTNERSHIPS:

If applying as a limited liability partnership, the Board will only accept the financial statement in the name of the partnership entity and not in the name(s) of the individual partner(s). The assets must be in the name of the entity requesting an application.

CORPORATION, LIMITED LIABILITY CORPORATION, LIMITED LIABILITY COMPANY, OR S CORPORATION:

If applying as a corporation, limited liability corporation, limited liability company or S corporation, the financial statement must be in the name of the entity and not in the name of an individual sole proprietor, even though the individual is a single member in one of the above entities. The way an entity submits taxes has no bearing on the requirement for the assets to be in the name of the entity making application.

Even though an entity is new or just starting a business, the assets must be in that business. If a business organizes itself against liability, in case of a lawsuit, the public must be able to sue the entity having a net worth that meets the group limitation requirements as stipulated in 40-11-260.

Code References: 40-11-240(B)(3) and 40-11-20(7)

Approved 1/18/2001