Associates don't usually own shares. That would make you a "partner", "part-owner", or "shareholder".
You don't necessarily need to own shares of the firm to have a profit-sharing arrangement.
You may or may not want to buy shares, depending on your long-term plans to be with this firm (you'll have to be bought out if you leave), your confidence in the short-term future of the firm, etc.
Also if you are not licensed then you and the firm need to check with the state to see if non-licensed people can be shareholders in your state. In some states they can't, while in others up to a third or even a half of the firm can be owned by unlicensed people.

owning shares is a big deal.

profit-sharing is not a big deal. your end of the year bonus could be considered profit-sharing.

But If I own shares...
what is the way out?
Can I still keep those shares if I am gone?
Do I lose them if I quit?
Do they buy it back?
What is a good revenue on shares?

thanks

Usually the firm would have to buy back your shares, or you and they would have to find someone else to buy in. In some cases it could be possible for you to leave and still retain ownership - i.e. be a "silent partner" - but this is not common in architecture firms - and again, that's a thing that some states have laws against.

you say:

"But If I own shares...
what is the way out?
Can I still keep those shares if I am gone?
Do I lose them if I quit?
Do they buy it back?
What is a good revenue on shares?"

I answer:

"what is the way out/can I keep them/do I loose them/do they buy back?" the answer is: ask them. get it in writing.

and I answer:

"What is a good revenue on shares?" I say better than 10% a year is great. 6-8% ok. Less than 6% you might consider getting a good online savings acct instead.

IE: if you invest $10,000, you should get $1,000 A YEAR in revenue at 10%. Obviously, if you leave before 10 years, and you don't get your original investment back, you are throwing your money away.

I might have some other questions:

1) what is my new title?
2) what are my new responsiblities?
3) can you revoke them? if so, how?
4) can I see the agreement, and take it to a lawyer first?
5) what are my new liabilities?
6) can I buy more shares / when /how much?
7) what new say do I get in the management/running of the firm?
8) can I still be fired? how?


etc etc etc.

I don't know what your level of investment is. I don't know how they are valuing (putting a price) on the shares. I'd want some help with deciding if what you are buying is worth what they say it is. You are buying part of the business, which in architecture is hard to value (really, it's the people, the value of the future work, the value of the current assets (usually pretty low) that make up the value of the firm)

I would invest in a firm if I could get a share in the actual management of the firm. If you are investing, you need to be able to control your investment. If you don't get a say in management, then they're taking your money and you are just hoping that you'll get some/all of it back.

sometimes, this can be good to advance your career quickly, but sometimes they're just putting the 'golden handcuffs' on you - you invest, and they keep your money if you leave. A way of keeping employees.

If you are at all unsure - talk to a lawyer

you say:

"But If I own shares...
what is the way out?
Can I still keep those shares if I am gone?
Do I lose them if I quit?
Do they buy it back?
What is a good revenue on shares?"

I answer:

"what is the way out/can I keep them/do I loose them/do they buy back?" the answer is: ask them. get it in writing.

and I answer:

"What is a good revenue on shares?" I say better than 10% a year is great. 6-8% ok. Less than 6% you might consider getting a good online savings acct instead.

IE: if you invest $10,000, you should get $1,000 A YEAR in revenue at 10%. Obviously, if you leave before 10 years, and you don't get your original investment back, you are throwing your money away.

I might have some other questions:

1) what is my new title?
2) what are my new responsiblities?
3) can you revoke them? if so, how?
4) can I see the agreement, and take it to a lawyer first?
5) what are my new liabilities?
6) can I buy more shares / when /how much?
7) what new say do I get in the management/running of the firm?
8) can I still be fired? how?


etc etc etc.

I don't know what your level of investment is. I don't know how they are valuing (putting a price) on the shares. I'd want some help with deciding if what you are buying is worth what they say it is. You are buying part of the business, which in architecture is hard to value (really, it's the people, the value of the future work, the value of the current assets (usually pretty low) that make up the value of the firm)

I would invest in a firm if I could get a share in the actual management of the firm. If you are investing, you need to be able to control your investment. If you don't get a say in management, then they're taking your money and you are just hoping that you'll get some/all of it back.

sometimes, this can be good to advance your career quickly, but sometimes they're just putting the 'golden handcuffs' on you - you invest, and they keep your money if you leave. A way of keeping employees.

If you are at all unsure - talk to a lawyer

wow! Thanks Gruen!

great post!