Why would the employer have to file a 1099 to deduct. He can simply use his receipt or check as proof of payment . You do not have to issue a 1099 for all expenses/services you simply have to prove that you paid x for y. Over complicating things...
The employer can deduct without the 1099 - but as the article at your link states "IRS auditors do not like indirect evidence. They struggle with it." Direct evidence is better. An audit is less likely to be triggered in the first place if all of the client's contracted labor is 1099'd. If the client wants the 1099 info, I don't understand why giving him that is such a problem here. The client wants to file a 1099, and the OP doesn't want to give him the info to do so. Why?
The other issue, of whether the OP is doing work that she's not allowed to do, seems like a bigger issue. If she's designing things she's not licensed to design, and she takes this to small claims court and reports her client to the BBB, and all of that, and he decides to retaliate by complaining to the state board, then she may lose much more in fines than what she's being stiffed for.
Spontaneouscombustion he was initially trying to get my to fill out an application and a w2 for his company. I wasn't sure what the 1099 was inevitably for for my services. I don't provide architectural drawings and am very cautious to do so because I wouldn't ever put future licensure in jeopardy. I just wanted to see what others on this forum could offer me As advice if anyone had been in a similar situation. I'm new to the freelance thing and am trying to do it legitimately and if that means a 1099 then I will do so
Your lawyer told you that as a freelancer you should not provide information to a client that will allow them to send you a 1099 for your work? I would get a new lawyer.
Has anyone on here run into a situation where you did freelance work without a license, however you stated clearly on all documents that you are not a licensed architect and that the work is not intended for construction use and for design purposes only. And at the end of the project the client refused to pay you an amount that was agreed upon. If so is it viable for such work would be upheld for compensation in small claims court?
You seem to be saying that you did work for a type of project for which you would not be allowed to do construction documents without a license. If that's the case, it doesn't matter that you wrote "not for construction, for design purposes only" on the drawings - you were still practicing illegally. As an unlicensed person you can't provide any type of architectural design services, regardless of project phase or intended use of those documents, for a project that requires a license, period.
Schematic yes. Please don't question whether I provide things I cannot. I take this seriously and understand all ramifications. Renders and a floor plan with no dimensions but with furniture and other misc furnishings and what not. In no way could they ever be used for a permit. I even have a statement that says "these drawings are not to be used for construction. They are to be used for design purposes only" etc something along those lines
It doesn't matter if the floor plans are to be used for permitting or not. In most states you can't provide any type of architectural design, for any phase, regardless of whether they are construction-level plans or not, on projects types that require a license, unless you have that license.
What do you mean "please don't question whether I provide things I cannot"? Isn't that your original question - whether you can collect this fee in small claims court? Based on the fact that you provided services illegally, as an unlicensed professional, the answer is no: if the court becomes aware that you provided services that you aren't legally allowed to provide, you will not be able to collect, because you weren't allowed to do that work in the first place. You also may be reported to your board. Depending on the state the fines range from $500 to $10,000 for providing architectural services without a license - yes even at the schematic level with no dimensions.
Depends. That's technically true, but it happens all the time with famous and foreign architects. Regardless if it's Zumthor or some first year student the court has to treat both equally...and any instance where precedent was set with the boards for people like Heatherwick or Maya Lin or Joe shmo ....it applies to everyone. The boards and courts cannot pick and choose who laws apply to, and if they try you can easily fight it. Also, what you are saying would essentially make open competitions illegal.
Aug 16, 16 5:30 pm ·
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Sorry I paid a lawyer and cpa to set up the company. He told me why but I can't recall the specific reasons just that there are problems with LLCs in the case of death or partnership disputes. Also as licensed professionals we are not protected by the corporate veil due to professional liability. That's why we carry insurance. I think it comes down to tax benefits in the end. It pays to hire very qualified professionals to set up your company and do your taxes. It seems costly but in the end they will save you more than they cost.
True.
My opinion:
Even unlicensed professionals, if you are the owners (versus a lower level employee... ie. non-owner), you are still liable and they pierce to corporate veil because the owners of any business is named in the lawsuits and any negligence in the name of the firm, all owners are jointly liable. Business owners can not escape negligence liability even if they are done by an employee. The only real difference between a licensed and unlicensed person is that a licensed architect is liable even if they are an employee. Owners are ALWAYS liable regardless of licensure status and are ALWAYS liable to acts of their employees. At least that is my understanding from Oregon and Washington laws and most of the States that I have studied the laws of. Therefore, what I said is an opinion and as we know, each state varies and the courts all varies.
Say for example, if you are a licensed architect and you were my employee, we both would be liable for any negligent actions you make.... regardless of entity type.
I doubt limited liability will do much to protect me or you. However, when it comes to say a debt of the business, you would not be liable unless some how you were involved but I would be liable as the business owner as with any of the other business owners. Limited liability would limit how much I am personally liable for.
As for how much does limited liability apply to tort / negligence cases is a variable that I am not going to say is the same everywhere. The universal rule is owners are ALWAYS liable for the acts of the people they employ so even unlicensed I would bear liability for the acts of any employee (licensed or not) that I would employ.
In the case of death or partnership disputes, I agree with what you wrote. I read that as well. The only kind of business entity that ordinarily survives their owners are corporations / incorporated businesses. This is because in those business types, the business is a separate legal entity to that of their owners (shareholders). In the case of death of an owner, problems can still arise depending on how much the house is in order regarding the owner/shareholder and whether or not they have a will or living trust arrangements otherwise it can become a problematic issue in those cases where the death of an owner sets things in legal limbo with regards to issues.
In my opinion, when setting up such a business, a will, living trust or something like it should be established by each shareholder/owner with regards to transfer of ownership of shares and such. In addition, some policy should be made for other owners to be able to buy up the shares of a deceased owner who otherwise does not have an established living trust (with a named executor) or will (benefactor(s)) in order to proceed on as a business.
Ambiguity in these cases can be a pain in the ass. Sometimes it doesn't but sometimes it does. It all depends on how things are set up.
Now the reason I gave him the amount of 400 was to be fair, originally the price came to 800 and I discounted heavily obviously, so I don't understand how you come up with me not wanting to file. If I knew he would want the 1099 I would have charged the original price
The only reason I can understand for not wanting to do the necessary paperwork for the 1099 and for giving him a 50% haircut on your fee to get paid in cash is because you didn't plan to pay taxes. That is the only rational reason for wanting cash. What other explanation is there? If it's purely because you don't trust him with your SS number, you shouldn't be doing business with him in the first place. If he would steal your identity, you really must think this guy is a real thug.
Despite your contract, you gave him the work product without getting paid first. Dumb mistake. My advice is do the 1099 and get paid. If you still don't get paid, write it off as paying your dumb tax. $400 is not worth talking to lawyers and going to court! Get on with your life and learn from the experience.
Aug 16, 16 6:30 pm ·
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ashley,
Spontaneouscombustion he was initially trying to get my to fill out an application and a w2 for his company. I wasn't sure what the 1099 was inevitably for for my services. I don't provide architectural drawings and am very cautious to do so because I wouldn't ever put future licensure in jeopardy. I just wanted to see what others on this forum could offer me As advice if anyone had been in a similar situation. I'm new to the freelance thing and am trying to do it legitimately and if that means a 1099 then I will do so...
1099 forms (eg. 1099-MISC).
If you are engaged as an independent contractor, this is suppose to be a 1099 form.
A W-2 form is the wrong form from my understanding.
For more accurate information, consult the official IRS website, forms and related documents. The wikipedia is more or less sufficient for a quick rudimentary understanding.
The work you described appears to be an independent contractor (self-employed) arrangement. I am not talking about construction contractors. These are two separate terms.
ashleyelizabeth, rwcb is like beetlejuice, easy to summon, very hard to get rid of. kiss your thread goodbye. you will now learn all about his failed personal and professional life in-between copy/pasted passages from wikipedia, the irs, oregon obae, aibd, aia, etc.
As it may seem that I wanted to get paid without taxes, certainly is not the case. I had met with local architects and they've helped me write my contracts. It was when this project was in inception one of my mentors made me write a contract and a fee schedule. I knew the price would have been of controversy for this specific contractor. He's a hot head and I knew he wouldn't appreciate the original price and that's the reason I cut the price down so low. Plus I knew 400$ was sufficient for me. I didn't really even think about taxes or anything else at that point. So please don't assume the worst with everyone. I make a living and I love what I do. If that means I underpay myself well that's my choice. But in this scenario I am offended by this contractor for devaluing my services. And again I ask these questions to see if any one else has been in a similar situation. I by no means am trying to "scam" the system. So everyone get that out of your minds and quit with the negative assumptions
I never said I was against it. I said my lawyer told me not to do it and I was curious to if I should or should not. Read!! Seriously read all my comments! This is an open discussion. Holy moly, you must be one of those book smart people...
Just give the client your SS number & he has to file the 1099. Get paid. End of story. Every businessperson has to do this. It's not rocket surgery. You don't file the 1099, the client does, but you DO need to give the client the SS number. Don't like that? Get an LLC or an S-Corp and a FEIN. Otherwise, it's the SS number? Now, don't post again until you do this, then post to tell us you have the money, and have learned a basic business lesson.
if your total annual income is more than $600 dollars as an independent contractor i.e.: self-employed you need to file a 1099. you can't just do jobs under $600 and not file a 1099. but go ahead, skirt the IRS. enjoy prison.
If your lawyer told you not to do it, why are you getting second opinions from non-lawyers? If your structural engineer tells you a beam won't work, do you solicit second opinions from your manicurist and car mechanic?
If you go to court over this, please make a more coherent case. You don't want the judge to get as big a headache as some of us are probably getting right now.
Aug 16, 16 7:31 pm ·
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ashley,
As it may seem that I wanted to get paid without taxes, certainly is not the case. I had met with local architects and they've helped me write my contracts. It was when this project was in inception one of my mentors made me write a contract and a fee schedule. I knew the price would have been of controversy for this specific contractor. He's a hot head and I knew he wouldn't appreciate the original price and that's the reason I cut the price down so low. Plus I knew 400$ was sufficient for me. I didn't really even think about taxes or anything else at that point. So please don't assume the worst with everyone. I make a living and I love what I do. If that means I underpay myself well that's my choice. But in this scenario I am offended by this contractor for devaluing my services. And again I ask these questions to see if any one else has been in a similar situation. I by no means am trying to "scam" the system. So everyone get that out of your minds and quit with the negative assumptions
No_form again, read! I do stuff by the books. This is just for informative purposes. I'm waiting to get the 1099, but still the contractor will not send it...
Aug 16, 16 7:49 pm ·
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tldr;
if your total annual income is more than $600 dollars as an independent contractor i.e.: self-employed you need to file a 1099. you can't just do jobs under $600 and not file a 1099. but go ahead, skirt the IRS. enjoy prison.
While home sick on the sofa one day, I saw this situation on People's Court. The "unlicensed architect" had provided sketches for a project. The client never paid the designer, and turned around and gave the sketches to somebody else to develop into construction drawings. The client claimed the sketches were poor, and completed late. In the end the judge said the client does not have the right to refuse payment on the basis of poor design, and since he accepted the work even though it was late then that didn't matter either. But the designer was practicing architecture without a license, which is illegal, and because of that he was not owed anything. The comparison was made to a drug dealer trying to collect on a debt in court: the court can't help, because the transaction is illegal.
AshleyElizabeth, if you've done multiple jobs for this contractor then your pay for the year will be over $600, so he will have to 1099 you. As in, he sends you a 1099 (comparable to a W9 for employees) so he has a solid record of where his income went.
When I was in a similar situation as you, I used my SS#. There is a degree of trust in a business relationship; if you are not comfortable giving him your SS#, then consider the $400 cheap tuition.
Or, if the $400 is important to you and you are not willing to give out your SS#, then get an EIN, which is basically a SS# for a business entity. A sole proprietor can get an EIN, or you can set up a different business entity. Personally, I set up an LLC, but operated for many years as a sole proprietor.
Public forums can be a great way to learn but some degree of hazing comes with the territory.
not sure how to rationalize the people's court decison
I work with tons of "designers" usually hired by a restaurant tenant, who basically design the interior and often the exterior of the space, at least on a conceptual level. At another firm I worked with conceptual designers as a part of a 500,000+ sq. ft. shopping center, as far from an except building as one could get.
Now that Balkins has a new friend, I'm just going to leave these here so they can get into an argument over the definition of architectural services and have a falling out:
"The practice of the profession of architecture is defined as rendering or offering to render services which require the application of the art, science, and aesthetics of design and construction [...] services include, but are not limited to consultation, evaluation, planning, the provision of preliminary studies, designs, construction documents, construction management, and the administration of construction contracts."
"The laws of the State are clear in regard to unauthorized practice. It is a Class E felony for anyone not authorized to practice, to offer to practice, or to hold themselves out as being able to practice in any profession in which a license is a prerequisite to practice."
Also, to those wondering about foreign architects who do work in New York ... one example of how this could work given in the practice guidelines themselves: "An example of a person "otherwise authorized" may include a person (but not a corporation of any kind), licensed in another jurisdiction, who has applied for and received a limited permit to practice in New York State but only in connection with the specific project for which it is granted."
Creative director, artist, designer, etc....all perfectly legal so long as you use an AOR. Happens all the time... many unlicensed designers...some very well known do this. Your essentially rendering the 9-11 memorial competition and the million other open competitions "illegal." Technically, yes under a strick interpretation of the practice act, but the Board has limited power to go after non-registrants who's practices overlap with those of architects. Public artists for instance often design large site specific works that conflate the lines between LA and Art. The state cannot restrict an artist as they are protected by freedom of expression/speech. If One were to design a gas station the defense of creative speech would likely be harder to use...so yeah...typology matters.
shuellmi, point taken. I could have sworn I remembered the OP mentioning New York somewhere back in the thread, but appears I was mistaken upon review. Must have confused it with something else.
Where is the OP located?
Aug 17, 16 12:22 pm ·
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E_I,
Now that Balkins has a new friend, I'm just going to leave these here so they can get into an argument over the definition of architectural services and have a falling out:...
Your point is?
Before people get their panties in a twist about claiming that the OP's work is on a non-exempt project, would it not be important to first figure out where the project is located and exactly what the project was in detail?
I might have overlooked as I didn't read through all the posts and most of them, I had mostly skimmed through. I just haven't noticed anything stated anywhere in this thread about the location of the project being stated anywhere or the state where ashleyelizabeth is located.
Aug 17, 16 12:26 pm ·
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Thanks shuellmi,
When I wrote the above, I didn't have a chance to read what you wrote as it wasn't posted when I started writing it.
Yeah Rick, shuellmi and I are already on top of it. I was mistaken, and attributed the OP's project to New York without any evidence. Thanks for following along.
Aug 17, 16 12:29 pm ·
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Sponty,
It would be foolish of her to say, lest Balkins turn around and report her.
Are you aiding and abetting the squandering of evidence to protect her? Even if she was in violation of the licensing law in the location, is it not the statutory duty of licensed architects to do so? I know I haven't waited for those like yourself to report those who violate the licensing law in the past but you know, I'll be leaving those reporting violation of licensing laws to you guys on this one. I received enough headache and backlash from you a--holes over someone I did report.
"I received enough headache and backlash from you a--holes over someone I did report."
we are a club, and balkins you're not invited. mess with one of us, feel the wrath of all of us. go back to your legos and lincoln logs.
Aug 17, 16 12:52 pm ·
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Sponty,
You're right. I had the term wrong. The correct term would be "Suppression of Evidence".
Are you aiding and abetting the suppression of evidence to protect her?
Aug 17, 16 1:02 pm ·
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Sponty,
Since I gave a question, you might say rightfully say 'no' but that would be technically true because there is another term that does apply. That term would be 'hiding evidence' which relates to Spoliation of Evidence... pretty much falls under the broader category of "obstruction of justice".
Therefore, I'll raise this question....
Are you aiding and abetting the obstruction of justice to protect her by suggesting her to not state where she and/or the project is located?
I'm stating that if she tells you where she is, then based on past episodes I believe you are likely to report her. That's a cause-and-effect observation. I have no knowledge of the project, her role, or her location, so nothing I could report.
"Suppression of evidence" typically refers to prosecutors illegally refusing to show evidence to the defense - it's got nothing to do with this situation.
"Spoliation of evidence" usually refers to destroying known physical evidence - again not relevant - because there is no evidence to destroy.
If you want to play lawyer you need to move beyond Wikipedics.
Aug 17, 16 1:24 pm ·
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Sponty,
However, you could still be in effect being obstructive to justice. The licensing board is part of the law enforcement and justice system in administrative/civil matters. If she violated the licensing laws, you are obstructing the administration of law enforcement. You are obstructing the government system from carrying out its duties by interfering with the discovery of violations of the laws.
Whether or not I report the person is irrelevant. Since there are a considerable number of licensed architects on this forum with the legal duty to report violations, I shouldn't have to report such violation.
However, if she is not violating the law, it would be clearly put to rest with full disclosure.
I heard Wikipedics (TM?) are being added to the academic decathlon.
Aug 17, 16 1:47 pm ·
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Licensing boards gets information about violations from architects, building officials, city/county officials, and anyone else who reports violations. We are the information source for the licensing boards. The eyes and ears of the licensing board is through those of us who informs the board of violations.
You are a licensed architect, Sponty. If you suggest people who violates the licensing laws to keep quiet, then you are interfering with the licensing board's ability to enforce the laws they are tasked to enforce.
There is no violation here that any of us can report, because we don't know the project type or the location or her role in this project. This is not the same situation as, for example, having to report a known danger to health, safety and welfare - and knowing the location of that dangerous building, and the name of the "building designer".
What is it exactly that you think I'm required to report here? And to whom?
Also, in the situation of your own theater-of-death, you claimed we had an ethical obligation to hold off reporting until we had pointed out the imminent life safety dangers three times, over some span of months or years, and allowed time for them to be corrected. Why would the same not apply here? Here's attempt #1: AshleyElizabeth: if you are working on a project of a type that you as an unlicensed person are not allowed to work on in that jurisdiction, stop it.
Aug 17, 16 2:01 pm ·
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There is no violation here that any of us can report, because we don't know the project type or the location or her role in this project. This is not the same situation as, for example, having to report a known danger to health, safety and welfare - and knowing the location of that dangerous building, and the name of the "building designer".
What is it exactly that you think I'm required to report here? And to whom?
Thanks you you, we may never know. You obstruct discovery of evidence that can be enough to build a case. Thanks to you, that may never be obtained.
Freelance work not getting paid
Why would the employer have to file a 1099 to deduct. He can simply use his receipt or check as proof of payment . You do not have to issue a 1099 for all expenses/services you simply have to prove that you paid x for y. Over complicating things...
http://howardlevyirslawyer.com/2014/08/03/i-didnt-issue-a-form-1099-to-my-subcontractors-can-i-still-deduct-the-expense/
The employer can deduct without the 1099 - but as the article at your link states "IRS auditors do not like indirect evidence. They struggle with it." Direct evidence is better. An audit is less likely to be triggered in the first place if all of the client's contracted labor is 1099'd. If the client wants the 1099 info, I don't understand why giving him that is such a problem here. The client wants to file a 1099, and the OP doesn't want to give him the info to do so. Why?
The other issue, of whether the OP is doing work that she's not allowed to do, seems like a bigger issue. If she's designing things she's not licensed to design, and she takes this to small claims court and reports her client to the BBB, and all of that, and he decides to retaliate by complaining to the state board, then she may lose much more in fines than what she's being stiffed for.
Spontaneouscombustion he was initially trying to get my to fill out an application and a w2 for his company. I wasn't sure what the 1099 was inevitably for for my services. I don't provide architectural drawings and am very cautious to do so because I wouldn't ever put future licensure in jeopardy. I just wanted to see what others on this forum could offer me As advice if anyone had been in a similar situation. I'm new to the freelance thing and am trying to do it legitimately and if that means a 1099 then I will do so
And additionally my lawyer told me not to fill that information out Soooo I wanted to see what others thought of the situation
Did you provide schematic level design? Was the design for a project type that requires a license in your state?
Your lawyer told you that as a freelancer you should not provide information to a client that will allow them to send you a 1099 for your work? I would get a new lawyer.
Has anyone on here run into a situation where you did freelance work without a license, however you stated clearly on all documents that you are not a licensed architect and that the work is not intended for construction use and for design purposes only. And at the end of the project the client refused to pay you an amount that was agreed upon. If so is it viable for such work would be upheld for compensation in small claims court?
You seem to be saying that you did work for a type of project for which you would not be allowed to do construction documents without a license. If that's the case, it doesn't matter that you wrote "not for construction, for design purposes only" on the drawings - you were still practicing illegally. As an unlicensed person you can't provide any type of architectural design services, regardless of project phase or intended use of those documents, for a project that requires a license, period.
Schematic yes. Please don't question whether I provide things I cannot. I take this seriously and understand all ramifications. Renders and a floor plan with no dimensions but with furniture and other misc furnishings and what not. In no way could they ever be used for a permit. I even have a statement that says "these drawings are not to be used for construction. They are to be used for design purposes only" etc something along those lines
It doesn't matter if the floor plans are to be used for permitting or not. In most states you can't provide any type of architectural design, for any phase, regardless of whether they are construction-level plans or not, on projects types that require a license, unless you have that license.
What do you mean "please don't question whether I provide things I cannot"? Isn't that your original question - whether you can collect this fee in small claims court? Based on the fact that you provided services illegally, as an unlicensed professional, the answer is no: if the court becomes aware that you provided services that you aren't legally allowed to provide, you will not be able to collect, because you weren't allowed to do that work in the first place. You also may be reported to your board. Depending on the state the fines range from $500 to $10,000 for providing architectural services without a license - yes even at the schematic level with no dimensions.
Depends. That's technically true, but it happens all the time with famous and foreign architects. Regardless if it's Zumthor or some first year student the court has to treat both equally...and any instance where precedent was set with the boards for people like Heatherwick or Maya Lin or Joe shmo ....it applies to everyone. The boards and courts cannot pick and choose who laws apply to, and if they try you can easily fight it. Also, what you are saying would essentially make open competitions illegal.
Sorry I paid a lawyer and cpa to set up the company. He told me why but I can't recall the specific reasons just that there are problems with LLCs in the case of death or partnership disputes. Also as licensed professionals we are not protected by the corporate veil due to professional liability. That's why we carry insurance. I think it comes down to tax benefits in the end. It pays to hire very qualified professionals to set up your company and do your taxes. It seems costly but in the end they will save you more than they cost.
True.
My opinion:
Even unlicensed professionals, if you are the owners (versus a lower level employee... ie. non-owner), you are still liable and they pierce to corporate veil because the owners of any business is named in the lawsuits and any negligence in the name of the firm, all owners are jointly liable. Business owners can not escape negligence liability even if they are done by an employee. The only real difference between a licensed and unlicensed person is that a licensed architect is liable even if they are an employee. Owners are ALWAYS liable regardless of licensure status and are ALWAYS liable to acts of their employees. At least that is my understanding from Oregon and Washington laws and most of the States that I have studied the laws of. Therefore, what I said is an opinion and as we know, each state varies and the courts all varies.
Say for example, if you are a licensed architect and you were my employee, we both would be liable for any negligent actions you make.... regardless of entity type.
I doubt limited liability will do much to protect me or you. However, when it comes to say a debt of the business, you would not be liable unless some how you were involved but I would be liable as the business owner as with any of the other business owners. Limited liability would limit how much I am personally liable for.
As for how much does limited liability apply to tort / negligence cases is a variable that I am not going to say is the same everywhere. The universal rule is owners are ALWAYS liable for the acts of the people they employ so even unlicensed I would bear liability for the acts of any employee (licensed or not) that I would employ.
In the case of death or partnership disputes, I agree with what you wrote. I read that as well. The only kind of business entity that ordinarily survives their owners are corporations / incorporated businesses. This is because in those business types, the business is a separate legal entity to that of their owners (shareholders). In the case of death of an owner, problems can still arise depending on how much the house is in order regarding the owner/shareholder and whether or not they have a will or living trust arrangements otherwise it can become a problematic issue in those cases where the death of an owner sets things in legal limbo with regards to issues.
In my opinion, when setting up such a business, a will, living trust or something like it should be established by each shareholder/owner with regards to transfer of ownership of shares and such. In addition, some policy should be made for other owners to be able to buy up the shares of a deceased owner who otherwise does not have an established living trust (with a named executor) or will (benefactor(s)) in order to proceed on as a business.
Ambiguity in these cases can be a pain in the ass. Sometimes it doesn't but sometimes it does. It all depends on how things are set up.
"unlicensed professional" cough cough. whut.
Now the reason I gave him the amount of 400 was to be fair, originally the price came to 800 and I discounted heavily obviously, so I don't understand how you come up with me not wanting to file. If I knew he would want the 1099 I would have charged the original price
The only reason I can understand for not wanting to do the necessary paperwork for the 1099 and for giving him a 50% haircut on your fee to get paid in cash is because you didn't plan to pay taxes. That is the only rational reason for wanting cash. What other explanation is there? If it's purely because you don't trust him with your SS number, you shouldn't be doing business with him in the first place. If he would steal your identity, you really must think this guy is a real thug.
Despite your contract, you gave him the work product without getting paid first. Dumb mistake. My advice is do the 1099 and get paid. If you still don't get paid, write it off as paying your dumb tax. $400 is not worth talking to lawyers and going to court! Get on with your life and learn from the experience.
ashley,
Spontaneouscombustion he was initially trying to get my to fill out an application and a w2 for his company. I wasn't sure what the 1099 was inevitably for for my services. I don't provide architectural drawings and am very cautious to do so because I wouldn't ever put future licensure in jeopardy. I just wanted to see what others on this forum could offer me As advice if anyone had been in a similar situation. I'm new to the freelance thing and am trying to do it legitimately and if that means a 1099 then I will do so...
1099 forms (eg. 1099-MISC).
If you are engaged as an independent contractor, this is suppose to be a 1099 form.
A W-2 form is the wrong form from my understanding.
The form is 1099-MISC.
https://en.wikipedia.org/wiki/Form_1099-MISC
For more accurate information, consult the official IRS website, forms and related documents. The wikipedia is more or less sufficient for a quick rudimentary understanding.
The work you described appears to be an independent contractor (self-employed) arrangement. I am not talking about construction contractors. These are two separate terms.
ashleyelizabeth, rwcb is like beetlejuice, easy to summon, very hard to get rid of. kiss your thread goodbye. you will now learn all about his failed personal and professional life in-between copy/pasted passages from wikipedia, the irs, oregon obae, aibd, aia, etc.
As it may seem that I wanted to get paid without taxes, certainly is not the case. I had met with local architects and they've helped me write my contracts. It was when this project was in inception one of my mentors made me write a contract and a fee schedule. I knew the price would have been of controversy for this specific contractor. He's a hot head and I knew he wouldn't appreciate the original price and that's the reason I cut the price down so low. Plus I knew 400$ was sufficient for me. I didn't really even think about taxes or anything else at that point. So please don't assume the worst with everyone. I make a living and I love what I do. If that means I underpay myself well that's my choice. But in this scenario I am offended by this contractor for devaluing my services. And again I ask these questions to see if any one else has been in a similar situation. I by no means am trying to "scam" the system. So everyone get that out of your minds and quit with the negative assumptions
Then what is your obsession with not doing a 1099?????????????????????
I never said I was against it. I said my lawyer told me not to do it and I was curious to if I should or should not. Read!! Seriously read all my comments! This is an open discussion. Holy moly, you must be one of those book smart people...
tldr;
if your total annual income is more than $600 dollars as an independent contractor i.e.: self-employed you need to file a 1099. you can't just do jobs under $600 and not file a 1099. but go ahead, skirt the IRS. enjoy prison.
If your lawyer told you not to do it, why are you getting second opinions from non-lawyers? If your structural engineer tells you a beam won't work, do you solicit second opinions from your manicurist and car mechanic?
If you go to court over this, please make a more coherent case. You don't want the judge to get as big a headache as some of us are probably getting right now.
ashley,
As it may seem that I wanted to get paid without taxes, certainly is not the case. I had met with local architects and they've helped me write my contracts. It was when this project was in inception one of my mentors made me write a contract and a fee schedule. I knew the price would have been of controversy for this specific contractor. He's a hot head and I knew he wouldn't appreciate the original price and that's the reason I cut the price down so low. Plus I knew 400$ was sufficient for me. I didn't really even think about taxes or anything else at that point. So please don't assume the worst with everyone. I make a living and I love what I do. If that means I underpay myself well that's my choice. But in this scenario I am offended by this contractor for devaluing my services. And again I ask these questions to see if any one else has been in a similar situation. I by no means am trying to "scam" the system. So everyone get that out of your minds and quit with the negative assumptions
https://en.wikipedia.org/wiki/Predatory_pricing
http://www.investopedia.com/terms/p/predatory-pricing.asp
There is plenty of stuff written about this topic both from legal sources and other sources. Wikipedia article is a small primer on the subject.
http://www.investopedia.com/terms/p/predatorydumping.asp
http://www.investopedia.com/terms/d/dumping.asp
No_form again, read! I do stuff by the books. This is just for informative purposes. I'm waiting to get the 1099, but still the contractor will not send it...
tldr;
if your total annual income is more than $600 dollars as an independent contractor i.e.: self-employed you need to file a 1099. you can't just do jobs under $600 and not file a 1099. but go ahead, skirt the IRS. enjoy prison.
https://www.irs.gov/businesses/small-businesses-self-employed/am-i-required-to-file-a-form-1099-or-other-information-return
Ashley.... read the page at the link above and repeated just below this sentence.
Link: https://www.irs.gov/businesses/small-businesses-self-employed/am-i-required-to-file-a-form-1099-or-other-information-return
Rick, Box 7, thanks! sent it off! you've been helpful and not at all confrontational. I appreciate that. Thanks for your help
While home sick on the sofa one day, I saw this situation on People's Court. The "unlicensed architect" had provided sketches for a project. The client never paid the designer, and turned around and gave the sketches to somebody else to develop into construction drawings. The client claimed the sketches were poor, and completed late. In the end the judge said the client does not have the right to refuse payment on the basis of poor design, and since he accepted the work even though it was late then that didn't matter either. But the designer was practicing architecture without a license, which is illegal, and because of that he was not owed anything. The comparison was made to a drug dealer trying to collect on a debt in court: the court can't help, because the transaction is illegal.
Congrats!
AshleyElizabeth, if you've done multiple jobs for this contractor then your pay for the year will be over $600, so he will have to 1099 you. As in, he sends you a 1099 (comparable to a W9 for employees) so he has a solid record of where his income went.
When I was in a similar situation as you, I used my SS#. There is a degree of trust in a business relationship; if you are not comfortable giving him your SS#, then consider the $400 cheap tuition.
Or, if the $400 is important to you and you are not willing to give out your SS#, then get an EIN, which is basically a SS# for a business entity. A sole proprietor can get an EIN, or you can set up a different business entity. Personally, I set up an LLC, but operated for many years as a sole proprietor.
Public forums can be a great way to learn but some degree of hazing comes with the territory.
not sure how to rationalize the people's court decison
I work with tons of "designers" usually hired by a restaurant tenant, who basically design the interior and often the exterior of the space, at least on a conceptual level. At another firm I worked with conceptual designers as a part of a 500,000+ sq. ft. shopping center, as far from an except building as one could get.
Now that Balkins has a new friend, I'm just going to leave these here so they can get into an argument over the definition of architectural services and have a falling out:
"The practice of the profession of architecture is defined as rendering or offering to render services which require the application of the art, science, and aesthetics of design and construction [...] services include, but are not limited to consultation, evaluation, planning, the provision of preliminary studies, designs, construction documents, construction management, and the administration of construction contracts."
http://www.op.nysed.gov/prof/arch/article147.htm
"The laws of the State are clear in regard to unauthorized practice. It is a Class E felony for anyone not authorized to practice, to offer to practice, or to hold themselves out as being able to practice in any profession in which a license is a prerequisite to practice."
http://www.op.nysed.gov/prof/arch/archguide-b1.htm
Also, to those wondering about foreign architects who do work in New York ... one example of how this could work given in the practice guidelines themselves: "An example of a person "otherwise authorized" may include a person (but not a corporation of any kind), licensed in another jurisdiction, who has applied for and received a limited permit to practice in New York State but only in connection with the specific project for which it is granted."
http://www.op.nysed.gov/prof/arch/archguide-b1.htm
ei, i believe those are very specific to new york, or at least to not apply to michigan (my exp) Where is the OP located?
Creative director, artist, designer, etc....all perfectly legal so long as you use an AOR. Happens all the time... many unlicensed designers...some very well known do this. Your essentially rendering the 9-11 memorial competition and the million other open competitions "illegal." Technically, yes under a strick interpretation of the practice act, but the Board has limited power to go after non-registrants who's practices overlap with those of architects. Public artists for instance often design large site specific works that conflate the lines between LA and Art. The state cannot restrict an artist as they are protected by freedom of expression/speech. If One were to design a gas station the defense of creative speech would likely be harder to use...so yeah...typology matters.
shuellmi, point taken. I could have sworn I remembered the OP mentioning New York somewhere back in the thread, but appears I was mistaken upon review. Must have confused it with something else.
Where is the OP located?
E_I,
Now that Balkins has a new friend, I'm just going to leave these here so they can get into an argument over the definition of architectural services and have a falling out:...
Your point is?
Before people get their panties in a twist about claiming that the OP's work is on a non-exempt project, would it not be important to first figure out where the project is located and exactly what the project was in detail?
I might have overlooked as I didn't read through all the posts and most of them, I had mostly skimmed through. I just haven't noticed anything stated anywhere in this thread about the location of the project being stated anywhere or the state where ashleyelizabeth is located.
Thanks shuellmi,
When I wrote the above, I didn't have a chance to read what you wrote as it wasn't posted when I started writing it.
It would be foolish of her to say, lest Balkins turn around and report her.
Yeah Rick, shuellmi and I are already on top of it. I was mistaken, and attributed the OP's project to New York without any evidence. Thanks for following along.
Sponty,
It would be foolish of her to say, lest Balkins turn around and report her.
Are you aiding and abetting the squandering of evidence to protect her? Even if she was in violation of the licensing law in the location, is it not the statutory duty of licensed architects to do so? I know I haven't waited for those like yourself to report those who violate the licensing law in the past but you know, I'll be leaving those reporting violation of licensing laws to you guys on this one. I received enough headache and backlash from you a--holes over someone I did report.
E_I,
No prob.
"squandering of evidence"? Find that for me in any state's law!
"I received enough headache and backlash from you a--holes over someone I did report."
we are a club, and balkins you're not invited. mess with one of us, feel the wrath of all of us. go back to your legos and lincoln logs.
Sponty,
You're right. I had the term wrong. The correct term would be "Suppression of Evidence".
Are you aiding and abetting the suppression of evidence to protect her?
Sponty,
Since I gave a question, you might say rightfully say 'no' but that would be technically true because there is another term that does apply. That term would be 'hiding evidence' which relates to Spoliation of Evidence... pretty much falls under the broader category of "obstruction of justice".
Therefore, I'll raise this question....
Are you aiding and abetting the obstruction of justice to protect her by suggesting her to not state where she and/or the project is located?
I'm stating that if she tells you where she is, then based on past episodes I believe you are likely to report her. That's a cause-and-effect observation. I have no knowledge of the project, her role, or her location, so nothing I could report.
"Suppression of evidence" typically refers to prosecutors illegally refusing to show evidence to the defense - it's got nothing to do with this situation.
"Spoliation of evidence" usually refers to destroying known physical evidence - again not relevant - because there is no evidence to destroy.
If you want to play lawyer you need to move beyond Wikipedics.
Sponty,
However, you could still be in effect being obstructive to justice. The licensing board is part of the law enforcement and justice system in administrative/civil matters. If she violated the licensing laws, you are obstructing the administration of law enforcement. You are obstructing the government system from carrying out its duties by interfering with the discovery of violations of the laws.
Whether or not I report the person is irrelevant. Since there are a considerable number of licensed architects on this forum with the legal duty to report violations, I shouldn't have to report such violation.
However, if she is not violating the law, it would be clearly put to rest with full disclosure.
PS: The last I recall, you are not her attorney.
I heard Wikipedics (TM?) are being added to the academic decathlon.
Licensing boards gets information about violations from architects, building officials, city/county officials, and anyone else who reports violations. We are the information source for the licensing boards. The eyes and ears of the licensing board is through those of us who informs the board of violations.
You are a licensed architect, Sponty. If you suggest people who violates the licensing laws to keep quiet, then you are interfering with the licensing board's ability to enforce the laws they are tasked to enforce.
There is no violation here that any of us can report, because we don't know the project type or the location or her role in this project. This is not the same situation as, for example, having to report a known danger to health, safety and welfare - and knowing the location of that dangerous building, and the name of the "building designer".
What is it exactly that you think I'm required to report here? And to whom?
Also, in the situation of your own theater-of-death, you claimed we had an ethical obligation to hold off reporting until we had pointed out the imminent life safety dangers three times, over some span of months or years, and allowed time for them to be corrected. Why would the same not apply here? Here's attempt #1: AshleyElizabeth: if you are working on a project of a type that you as an unlicensed person are not allowed to work on in that jurisdiction, stop it.
There is no violation here that any of us can report, because we don't know the project type or the location or her role in this project. This is not the same situation as, for example, having to report a known danger to health, safety and welfare - and knowing the location of that dangerous building, and the name of the "building designer".
What is it exactly that you think I'm required to report here? And to whom?
Thanks you you, we may never know. You obstruct discovery of evidence that can be enough to build a case. Thanks to you, that may never be obtained.
You didn't answer the question.
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