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Legal Architecture Firms in NYS

elinor

I was licensed in another state, then sought reciprocity in NYS where I currently live and work. During this time, I called myself an 'architect' on my website. I think it said something like 'architect based in NYC', which was intended to only mean that this is where I live, but admittedly might have been confusing. So I received a friendly yet stern letter from the NYS dept. warning me to change this terminology since I was not yet licensed in NYS. So I eliminated any reference to NY but still called myself an architect, which they agreed was acceptable.

Now I am licensed here and have been familiarizing myself with the laws regarding practice. In NYS, architectural services may be provided by:

* A sole proprietor licensed in New York State.
* A partnership, in which all partners are licensed, at least one as an architect. The other partners may be licensed as a professional engineer, landscape architect or land surveyor. There is no provision in New York for interior designers to have any ownership in business entities providing architectural, landscape architectural, professional engineering or land surveying services.
* A professional service corporation, (PSC) authorized under Article 15 or 15A of the New York State Business Corporation Law.June 17, 2009 corporations where each of the shareholders, officers and directors must be licensed in New York State. The four design professions cited above may form a PSC to render those professional services for which the individuals are authorized to provide.
* Professional Limited Liability Companies, both domestic and foreign, may provide architectural services. All members are required to be licensed in New York State.
* Limited Liability Partnerships, both domestic and foreign, may provide architecture services and all partners must be licensed in New York State.
* Grandfathered corporations, that is a general business corporation organized and existing under the laws of New York and which, on or before April 12, 1929 and continually thereafter, was lawfully practicing in New York. The chief executive officer of such a corporation must be an architect licensed in New York.

No other entity or individual, including a general business corporation authorized under the laws of another jurisdiction to practice, may practice architecture in New York State. A New York licensee who is an officer or employee of a general business corporation operating in New York, or in another jurisdiction, cannot provide architectural services in New York as an officer or employee of that corporation but can do so only as an individual. A contract with a client in New York State must be between the individual licensee and the client and not between the corporate employer (i.e. the corporation) and the client.

Sorry, that's long. But what it says is that every single person who is a partner or officer in the firm has to be licensed in NYS for that firm to be able to legally practice architecture. So it's not possible for a licensed architect to partner with an unlicensed architect and call the firm an architecture firm. However, that describes a lot of well-known NYC architecture partnerships, who sometimes call themselves architecture firms and their unlicensed members 'principals' or 'architectural practitioners' or 'design architects' on their websites.

Are there different rules for them? Or did the rules conveniently get stricter recently just in time to make things difficult for the rest of us? can anyone shed some light on this?


 
Jan 12, 11 3:09 pm
Rusty!

I'd love to know the answer to this as well.

On the surface it appears that architects lobbied for stricter protectionist laws, but in return screwed themselves from all kinds of business opportunities. Say goodbye to ever opening a true interdisciplinary office.

Sometimes I really hate the I-got-mine-so-screw-the-rest attitudes prevalent in this profession. Its harming everyone involved, but arguably not really helping anyone.

Jan 12, 11 3:37 pm  · 
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elinor

i'm having some fun going on the NYS office of the professions website and plugging in names of well-known NY architects...i guess it's always possible that some of them have different legal names or are in fact licensed land surveyors, but it's pretty ridiculous how many don't meet the above description (and how many deliberately avoid the words 'architecture' or 'architect' on their sites while claiming they 'design buildings' or some other such horse s***.......

Jan 12, 11 4:51 pm  · 
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St. George's Fields

Legally, a partner is someone who has a controlling interest in the company, partnership et cetera. They're entitled to a percentage of the firms profits [or debts].

There's a tax loophole that allows owners a way of diverting their money through the corporation and paying less taxes than they would. Typically, these people use a Form 1065, Schedule K-1 rather than a Form W-2.

In full-fledged corporations and those that are publicly-owned and traded, officers and partners are typically employees of the corporation and receive compensation consummate to those positions.

Also, these configurations allow owners to spend their own personal money on their business and then be reimbursed a non-taxable redistribution (publication 550 deals with this, I think). These are basically known as 'capital gains.'

Also, owners of corporation like this can use deferred company capital to issue below-market loans to pay for things. These are tricky but its typically a way corporations can buy personal items while paying little taxes on it. You can find more about this in Publication 535.

The issue is that in these certain circumstances, proprietorships and partnerships also hold a legal liability that's not commonly found in other incorporated schemes. An unlicensed partner certainly cannot share this liability because they're not authorized to practice architecture in really any means.

I believe in New York City, S-Corporations (as well as various other forms of business arrangements) have to pay a standard 8.85% corporate tax. So, there's no real benefit to using one of these arrangements because the tax shelter is effective busted at that point. In which case, having a corporation where unlicensed or non-architectural staff can assume management positions might be a benefit.

Jan 12, 11 4:54 pm  · 
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elinor

yes, but they can't call themselves an architecture firm, or claim that they practice architecture.

Jan 12, 11 4:57 pm  · 
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St. George's Fields

"No other entity or individual, including a general business corporation authorized under the laws of another jurisdiction to practice, may practice architecture in New York State. A New York licensee who is an officer or employee of a general business corporation operating in New York, or in another jurisdiction, cannot provide architectural services in New York as an officer or employee of that corporation but can do so only as an individual."

That theory is shot down.

Perhaps officers and partners are honorary rather than legal? Meaning they are treated as standard employees with no ownership?

Jan 12, 11 5:05 pm  · 
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elinor

yes, that has to be it. and they work for their licensed spouse or whatever. And then they run around calling themselves 'architects' and 'design architects' and 'partners' and 'principals' all over the place. such bs!!

Jan 12, 11 5:08 pm  · 
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elinor

or they have a GBC which is nominally a design firm, and the licensee signs separate individual contracts with clients?


Jan 12, 11 5:11 pm  · 
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St. George's Fields

"and the licensee signs separate individual contracts with clients?"

I looked it up and that seems to be legal. But the licensee has to sign it as an individual rather than through the corporation which means all the liability is on the individual person.

Perhaps the client agrees to hold the corporation liable and make payments to the corporation rather than the licensee? There seems to be workarounds to the whole situation but it seems to be rather rigid.

Doesn't this effectively limit generalist and specialist design-build firms to being a collection of compartmentalized corporations rather than a singular organization?

Do the owners or organizers of conglomerations, venture capitalist firms and investors also have to be licensed architects if they technically own architecture firms?

Jan 12, 11 5:24 pm  · 
 · 
elinor

1. yes, it seems that way.

2. maybe not if they are not officers of the corporation, but it's a good question.

NYS also states the use of honorary titles, like 'vice president' or 'principal' are 'inappropriate' when applied to unlicensed architects.

http://www.op.nysed.gov/prof/arch/archguide-b4.htm

Jan 12, 11 5:37 pm  · 
 · 
St. George's Fields

"Law, rules and regulations, not Guidelines, specify the requirements for practice and violating them constitutes professional misconduct. Not adhering to this Guideline may be interpreted as professional misconduct only if the conduct also violates pertinent law, rules and regulations."

So, it's technically not illegally but kind-of legal?

Way to be clear and concise, SNY.

"Generally, the title "Associate" is acceptable for a non-licensee as long as the employee and the employer do not imply that the associate is an architect. Again, the title Director of Computer Services is acceptable since that title would not confuse the public nor would a title such as Chief Financial Officer."

I thought you can't be an officer of an architecture firm if you're not licensed?

Jan 12, 11 6:24 pm  · 
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snook_dude

If I had a partner in a large firm I would want him to have and MBA not a Masters degree in Architecture. More likely we could sustain the difficult times. I would not want him as an employee but a full fledged partner...

Jan 12, 11 7:20 pm  · 
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olaf design ninja

I worked for a big firm and they did it real easy
They were two companies, one general corporation and one PLLC
Form two entities - one on the titleblock and another for general use

I found out one of my employers was on probation via the department of education, he just kept practicing...

To second rusty architects are morons when it comes to this, you qucikly get rid of the business savvy guys because of a technicality, when all the business savvy guy has to do is partner up with a licensed guy...

Jan 12, 11 7:27 pm  · 
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olaf design ninja

I worked for a big firm and they did it real easy
They were two companies, one general corporation and one PLLC
Form two entities - one on the titleblock and another for general use

I found out one of my employers was on probation via the department of education, he just kept practicing...

To second rusty architects are morons when it comes to this, you qucikly get rid of the business savvy guys because of a technicality, when all the business savvy guy has to do is partner up with a licensed guy...

Jan 12, 11 7:27 pm  · 
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olaf design ninja

But not really partner up...see above...or partner up under the general entity
The problem is the contract between client has to be with a legal architect so the other option is you are the clients rep (general company) who then hires your architect company for legal stuff

I do have a list of lawyers for this stuff elinor, will try and dig up, but most are 300 an hour and what startup architect can afford that!

Jan 12, 11 7:29 pm  · 
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olaf design ninja

And your architect insurance is for you license not the company anyway. So you could sue yourself if you do the two entity thing.
The idea with multiple partners is to divide up the insruance based on type of work etc...or if one insurance goes up you switch to another license in the office

Yes all BS

In NJ only 3/4 need a licens
In PA only 1/2
In AL just one guy

Jan 12, 11 7:33 pm  · 
 · 
Rusty!
If I had a partner in a large firm I would want him to have and MBA not a Masters degree in Architecture.

but but... Those evil non architects are stealing our jerbs! 10 evil contractors team up together and they kidnapp an architect and make him a partner and then they can steal any job they like derp derp. We must protect architecture from these savages.

So what if we are ultimately marginalizing our own profession into irrelevancy? The law says our stamps make us special.

Jan 12, 11 7:35 pm  · 
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olaf design ninja

The market doesn't give a fuck dear architects
You dear architects are not greater than the free market
Protect your right to stamp in contrast with the markets desire to build and see what happens.

This is what happens when the influential members of a profession are rich kids with a hobby.


Jan 12, 11 8:17 pm  · 
 · 
elinor

thanks olaf...very informative. i can barely afford office supplies right now, but when the time comes for lawyers, I'll definitely hit you up for those names!

out of curiosity, which company did the employees work for, the general or the pllc, or both? do you know if there's an advantage to one or the other? i imagine there may be some disadvantages for some employees if they work for the general, like if they're looking to get licensed themselves but their employer is a gbc? i think i remember that some friends of mine had a problem with this.

Jan 12, 11 8:17 pm  · 
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olaf design ninja

My paycheck was from the company but the pllc was on the titleblock. The company had investors by owning stock in the company, obviously can't do that if a PLLC.

I received a stern letter from NYS once for one of my websites. I also was told because I put Inc.at the end of the firms name I wasn't going to get my intern hours, I called yelling at the state and they just re-fill the form out the the RA's name only you worked under.

That was 5 years ago, still haven't taken the exams, but keep getting business, go figure.

Jan 12, 11 8:25 pm  · 
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gtsf

Just so you know....

The type of corporation or partnership that you want to create depends upon the type of liability and tax situation you want to assume. For smaller corporations (just a few parties), this would include flow through taxation (S-Corps) where you are taxed only once given your size, though you reap the benefit of being seen as a person (without any of the constitutional responsibilities that real people have). But this depends upon the state of course.

Partnerships are different. Generally (at least about 10 years ago), partnerships allowed certain members to have the full benefits of the business while having other types of partners which did not receive full benefits either. This is important because general partners assumed full legal liability of the obligations of the partnership, though (I think) are taxed lower than a corporation (I could be wrong about that in NY). But unlike corporations, parties can individually attach the incomes and capita of each general partner (could be different in NYC). However, non-general partners (however they all themselves, usually limited partners, LLP, LP, or even limited corporations-LC) are not liable for the general liabilities of the corporation (such as in bankruptcy).

Jan 13, 11 8:33 am  · 
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logon

Don't forget that you were one of the many "designers" at some point in your life. Are you are saying you never drew a set of plans or worked for an Architect, who broke these rules? You never designed a home for a friend or family member before you were registered and oh so almighty? It's hard not to do what you love, especially when your good at it. I have had NYS on my butt several times due to jealous people who have nothing better to do than report me. Instead of spending all of this time searching names get off of your high horse and get into some marketing and advertising. This is a tough economy, find your own work. Don't be jealous because someone else has a style, website or talent that attracts more clients... I don't spend my down time complaining about how some Architects get their seal shipped overnight with a large package of Asshole, spite and undue judgment.

I design homes for a living under NYS law. And no, I am not registered! (insert emoticon with tongue sticking out at you here), but I plan to be. I design homes 1500 square feet and under. I follow building code, energy code and I am an honest person. NYS gives me the right to design homes, and I do not appreciate the nasty comments. Is it fair to assume you are one of those "they all look the same to me." people? Where is the good moral and of quality character there???

I know people who should not be allowed to work in this profession, still do so . However, there ARE indeed designers who are perfectly capable, but not yet licensed.

I can name several shady Architects. Engineers and Design build firms that should not have their stamps. I know numerous design build companies which have become very successful while staying under radar. All of them employ Architects, who knows he or she is breaking the law because the owner is not an Archiitect. What about the Architects who work in these companies knowing all too well that they are breaking the law and character requirements?? So, why not badmouth these guys? Please do not badmouth all designers, you weren't always an Architect!

The day you see on of us "Evil designers" selling plans for schools, hospitals and bridges, have at it. Spend less time here complaining about "people stealing your work" and more time building your business! Then the work will come. If your not getting clients your doing something wrong. I let my talent show in my website and other advertising. I have plenty of work.

Apr 5, 11 6:24 pm  · 
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Matt_A

if you are interning at a firm that does not comply with NYS law, New York will not accept your hours to meet the internship requirements.

Apr 6, 11 5:33 pm  · 
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logon

Yes, I learned this the hard way. I worked under a registered Architect for five years at a timber Frame Company. All of which is of no use.

Apr 6, 11 5:47 pm  · 
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Rchitect

Hey people, just wanted to chime in on this discussion because the NYS office of professions has also left me with a bad taste for this profession... I have made several complaints against a General Business Corporation who has an Architect who claims to offer space planning, architectural design and workspace consultation. I have supplied proof and documentation of this to NYSOP, filed an official complaint and NOTHING has been done to correct the firm/ stop them from practicing (I know others who currently work there).

Unfortunately, I see that my circumstance of working under this Architect Registered in NY, under this type of business, for over 2 years has left me without my IDP signed appropriately, without NYS board of architecture acceptance and with a grueling idea of retaliation. Don't worry though, the drawings I created made it to the field contractors and the 100,000 square foot office building was built, amongst many others, remarkably without a stamp and certificates of occupancy having been granted.

In other cases the developer comes in and gets an architect to rubber-stamp the drawings these "design firms" create and the architect of record then puts their title block over the drawing as if they reviewed it (also against the current state law).

Likewise, the corporation makes direct interaction with the client, without consultation of the architect of record and the client (also illegal).

I have sent 30 follow up emails, and very recently sent another, to the office of professions... Yet no response. Go figure, that's because NYS Office of General Services employs this firm to possibly cut their own costs?

It is very true that the architects who are currently lawmakers and enforcers of our profession are twisted baby boomers who are messing up the future of architecture in general.

I have invested way too much time and money to leave this profession now though, just want to see this go public. Glad Im not the only one experiencing these unjust decisions.

R

Apr 10, 11 12:35 pm  · 
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Ukiii

In NYS, If I am a professional engineer with experience in architecture, can I partner with a RA and practice architecture together? If I do will I be able to build credit towards getting an RA at some point?

thanks for your opinions I know to contact a lawyer for actual advice just curious what you guys think.

May 31, 24 12:47 pm  · 
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spaceman

These rules have been in place for years, and other states have similar rules. When we do work in NY and Nevada, the contracts have my name on it rather than the firm name. Other states allow our firm to register as a foreign entity without all partners being licensed in that state.

May 31, 24 2:48 pm  · 
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BulgarBlogger

Pretty sure the OP forgot about DPC's in NYS

May 31, 24 4:21 pm  · 
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