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A contractor with a general building license wants to form a corporation with two others holding Electrical and Plumbing licenses. What should the new corporation do?

  1. Be licensed in the general building classification only

  2. Be licensed in Electrical and Plumbing classifications only

  3. Be licensed in all three classifications

  4. Obtain a special license from the State

The correct answer is: Be licensed in all three classifications

A contractor with a general building license, along with partners who hold Electrical and Plumbing licenses, should form a new corporation that is licensed in all three classifications. This is essential for ensuring compliance with state regulations that require contractors to hold the appropriate licenses for the work performed. By obtaining licenses in general building, electrical, and plumbing classifications, the new corporation can legally take on a wider range of projects. Having all three classifications allows the corporation to perform comprehensive services, which can enhance project management efficiency and streamline operations. It also expands the potential client base by being able to handle projects that involve electrical and plumbing work, in addition to general building tasks. This comprehensive licensing aligns with the legal requirements in the state, ensuring that the corporation operates within the boundaries of the law and maintains a strong reputation in the industry.