As any Oregon real estate developer likely knows, the Construction Contractor’s Board will require you to be registered as a contractor if you are developing land owned by another for a fee or developing land you own with the intent to sell. But many developers have followed what might be an overly conservative path: the registration of development entities – special purpose LLCs for example – when that entity is neither a fee developer or building with the intent to sell. Such entities are typically formed to hold the land during construction and after construction, leasing the premises or perhaps operating manufacturing or other business operations on site. Under these circumstances, the CCB and the courts are much more likely (there are no guarantees!) to consider you as “building for your own account”, which is generally exempt from the registration requirements. While registering with the CCB may be considered a minor inconvenience for a year or two, keeping entities licensed for 10 years or more can add up, both in terms of dollars and administrative hassle. Before making the kneejerk decision to register every special purposes LLC or other entity, consider carefully whether registration is required. If in doubt, call the CCB for guidance.
