Which statement about licensing for joint ventures and their parties is true?

Which statement about licensing for joint ventures and their parties is true?

• A. The joint venture or each contracting party must be licensed.
• B. Only the joint venture must be licensed.
• C. Only one contracting party needs a license.
• D. No license is required for joint ventures.

Answer: (A)

In Virginia, licensing applies to anyone performing contracting work, and a joint venture is treated as a contracting entity. That means a joint venture must hold its own license, or, if it doesn’t, the individual parties forming the venture must each hold valid contractor licenses. This setup ensures that someone responsible for the project is properly licensed and accountable.

So the correct idea is that the joint venture or each contracting party must be licensed. The other statements misstate how licensing works: a joint venture can’t bypass licensing by itself, and it isn’t enough for only one party to hold a license or for no license to be required.