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Business Structure & Liability - US Architect, Foreign 'Employer', US project

tektonic7

I am a California registered architect. My previous foreign employer (I lived overseas) would like to re-engage me remotely to act as their local representative for a US Interior Design project in a project management role during Programming through DD. The project will have a separate local AOR in the project's state. My questions:

1. Is it preferable for the foreign firm to set up a US entity to employ me directly, or for me to go at it as a sub-consulant with my own sole proprietorship or PC? 

2. Are third-party US-based "employers-of-record" a legal option whereby the foreign design firm partners with a local thrid-party entity to act as my employer, which handles payroll, tax witholding and labour law compliance, while I report directly to the foreign firm regarding the 'content' of my workload?

3. Does the fact I hold a license increase my personal liability when working in a cross-border PM role, even if the local AOR will be producing & stamping the construction documents? Do I still need my own Professional Liability and E&O insurance, in this case?

Thanks, in advance, for your thoughts on this unusual scenario!

 
Oct 9, 18 2:09 pm
BulgarBlogger

I am also a CA registered architect. The question is if the firm's instruments of service are in the "responsible control" of a CA registered architect. You should know this...

Oct 9, 18 9:27 pm  · 
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BulgarBlogger

https://www.cab.ca.gov/act/ccr...

Oct 9, 18 9:30 pm  · 
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BulgarBlogger

Curtis - get a license, then advise. I'd say the same thing to Balkins. 

OP- if the project is in California, all of the instruments of service that are produced by the "architectural firm" need to be in the responsible control of a licensed architect in that State and all types of those instruments of service (not just limited to technical submissions) need to be sealed by the licensed individual. 

I would highly advise you not to enter into a role of "Architect of Record" in California for a firm that is not licensed to practice architecture there... that is a big no no... 

Oct 9, 18 9:58 pm  · 
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BulgarBlogger

Understanding Zoning involves reading comprehension. Understanding the Building Code involves reading comprehension. Yes- licensed architects need to be able to understand what they are reading; non-licensed individuals do not. So as a non-licensed individual, if you advise on something you may not fully understand or have misunderstood- you are actually doing a disservice to whoever you are trying to help. Its kind of like advising on the dose of a medicine as an administrator in a doctor's office.

Oct 10, 18 11:46 am  · 
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BulgarBlogger

Sorry - what is a licensed residential designer? lol Anyway - only a dumbass would be worried about personal liability if he isn't signing and sealing drawings...

Oct 10, 18 12:21 pm  · 
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thisisnotmyname

The path of least resistance would be for you to do the work as an independent contractor.   Read and understand the IRS definition of an independent contractor and structure how you perform your PM work for the foreign corporation accordingly.   Charge enough to cover your self-employment taxes, health insurance, etc.  

Personally, I would set up a project management company as a simple LLC or S-corp and buy some insurance.   Also explore adding a limitation of liability clause in your contract.  

For a fee, temporary staffing agencies often will act as the middlemen for the "employer of record" thing.

To employ you directly, the foreign company would have to set up a USA entity.  That will require some set-up work and ongoing compliance tasks on their part that your employment for a single project may not justify.

Oct 10, 18 12:02 pm  · 
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