I've been a licensed Plumbing Contractor for the last 37 years, working in Southern california. The way it works is different in evera area, some States don't require a license, and NONE of them require a Licensed Contractor to be insured, only "bonded". The State License Board doesn't actively police those working without a license and it's not really a problem until there is a problem and the homeowner is unhappy. Most of my competition isn't licensed by the State, licensed by the indivual city, is not bonded , is not insured, and works for cash, avoiding Uncle Sam. They are free to illegally advertise and can usually do the same job for 30% less than I can afford to...VERY attractive to the Homeowner. Most Homeowners couldn't care less about licenses or insurance...they never ask or ever check.....it's all about the bottom buck. Personally, I don't know one Plumber in this area that has ever sued a homeowner because he's been hurt.

I'm not a Joe Fan, but in his defense, alot of self-employed people in his position have a difficult time jumping through all the hoops,and cash flow is always a problem. Unfortunately, the IRS is easy to ignore when it's not taken out of your paycheck each week.....many get into tax trouble...it doesn't make Joe a bad person.