Interesting theory, but it seems that would increase insurance rates for the contractors wildly. This would need to be a “one and done” for each contractor.
Just keep spinning up new shell corps with a different henchman owner on paper. That’s IF the rates get too high. The goal is to keep your goons paid so they can earn you money in other illegal ways.
Would explain how trump keeps finding companies willing to get stiffed by him.
Also who knows if he had an insurance broker in on it.
Just keep spinning up new shell corps with a different henchman owner on paper.
There’s an interesting parallel to this in the school bus world, which is why if you pay attention to the buses you’ll see an ever-changing roster of weirdly-named private bus contractor companies. These companies generally make money by operating old, poorly-maintained buses and hiring cheap drivers without checking very closely into the status of their CDLs and school bus endorsement cards or rigorously drug-testing and alcohol testing (or doing child molestation criminal checks like they’re supposed to). They end up costing school districts that privatize more money than operating their own transportation departments did because of greatly elevated accident rates; once their records become truly heinous they fold up and re-open under some weird new corporate name (Total Transportation Corp, KRAPF, Tony Placebo’s Bus Services etc.) and set about bribing more school districts into privatizing.
But we love our children here and would do anything to keep them safe!
That’s one of the reasons to license trades. If you need a Master Electrician for your business’s electrical contractor’s license, it’s a lot harder to spin up fake companies with random, because becoming a Master Electrician takes years of work.
Electricians aren’t magicians, and anybody can learn to do what they do fairly quickly. But making the process require rlyears of work means they’re less-likely to cut corners or participate in shady deals. They don’t want to risk their license.
Interesting theory, but it seems that would increase insurance rates for the contractors wildly. This would need to be a “one and done” for each contractor.
Just keep spinning up new shell corps with a different henchman owner on paper. That’s IF the rates get too high. The goal is to keep your goons paid so they can earn you money in other illegal ways.
Would explain how trump keeps finding companies willing to get stiffed by him.
Also who knows if he had an insurance broker in on it.
There’s an interesting parallel to this in the school bus world, which is why if you pay attention to the buses you’ll see an ever-changing roster of weirdly-named private bus contractor companies. These companies generally make money by operating old, poorly-maintained buses and hiring cheap drivers without checking very closely into the status of their CDLs and school bus endorsement cards or rigorously drug-testing and alcohol testing (or doing child molestation criminal checks like they’re supposed to). They end up costing school districts that privatize more money than operating their own transportation departments did because of greatly elevated accident rates; once their records become truly heinous they fold up and re-open under some weird new corporate name (Total Transportation Corp, KRAPF, Tony Placebo’s Bus Services etc.) and set about bribing more school districts into privatizing.
But we love our children here and would do anything to keep them safe!
That’s one of the reasons to license trades. If you need a Master Electrician for your business’s electrical contractor’s license, it’s a lot harder to spin up fake companies with random, because becoming a Master Electrician takes years of work.
Electricians aren’t magicians, and anybody can learn to do what they do fairly quickly. But making the process require rlyears of work means they’re less-likely to cut corners or participate in shady deals. They don’t want to risk their license.
You don’t need to be a master electrician to “own” a licensed company, you just to have one your staff to operate under their license
Yeah, but there aren’t an unlimited number of MEs. And MEs have a bunch of power over an EC, since the company can’t operate if they walk.