I was recently contacted through a friend of a friend to do some minor exterior façade work. The work is minor but requires it to be filed with the building department, so I would I would be putting together drawings and working with an expeditor to do the paper work to be signed and sealed. I am currently writing a proposal for this work and was wondering if there is any legal concerns with filing drawings without a business. I am going to be setting up a business name with the state, but that probably will take some time to set up.
Does anyone know of any issues with writing a proposal and conducting architectural services without a state approved business name?
null pointer
Sep 2, 15 9:59 pm
the state in which you reside matters.
care to clarify?
Sep 2, 15 10:35 pm
Are you using your real and true name?
JeromeS
Sep 3, 15 7:26 am
I can't imagine that there is any state in the union that prohibits a licensed sole-proprietor, operating under his own name from sealing work...
awaiting_deletion
Sep 3, 15 7:34 am
assuming your license is insured with professional liability then using your name which is the name of your license is recommended. your question is not reallt an archit question its a business and state tax question.
awaiting_deletion
Sep 3, 15 7:38 am
also sounds like you may be in NYC, and if not the following statement still holds true - you better be well insured doing facade work.
JeromeS
Sep 3, 15 8:09 am
While Olaf's suggestion is a good one- There is no requirement that you do carry professional liability. Many practices do not and the AIA has published amendments (see B503) for some other way to limit liability.
null pointer
Sep 3, 15 10:16 am
Get insurance. It's not super expensive. I carry a couple of mil. which I bought with the proceeds of something like three renderings for a client.
I've had a lot of landlords ask for proof of insurance when doing TI / retail / restaurant work here in NYC.
gruen
Sep 3, 15 10:34 am
Many states require you to be both licensed as an arch and have your arch firm be licensed, even if a sole prop. This is separate from business licensing that's req''d for corps, llcs etc. get a biz lawyer, worth it
JeromeS
Sep 3, 15 11:00 am
gruen, expound please; What states?
NY requires corporate practices to be "licensed" but there is no similar requirement for a sole-proprietor, unless he wanted to use an impersonal name. Even then its a 25$ fee and a DBA form with the county clerk, not anything complicated.
null pointer
Sep 3, 15 11:09 am
What Jerome said.
It's also worth noting that insuring the practice is almost functionally identical to insuring yourself in NYC, especially given the rules on professional coporations/llcs in NY. There are no corporate protections for EO issues when it comes to NY professionals.
Of course, don't quote me, I'm not a lawyer.
chigurh
Sep 3, 15 2:33 pm
some municipalities require you to register a business in the jurisdiction and pay the associated fees before you can stamp and submit plans to the local building department.
insurance is always a good idea.
Sep 3, 15 3:40 pm
Many cities will be fine with out of town architects, designers, etc. to begin providing services to clients and getting your first chunk of money from the client to prepare plans. In which case, getting a retainer fee or upfront front loaded fee which should include covering costs like municipal business licenses. I actually have to do that in Oregon. There is a state business registration but individual cities have business licenses/occupation 'tax' that they charge which applies to me conducting business in that city even when I am not at all located in the city. They usually will be fine with it. This is due in part that at as service based businesses we don't spend money to every conceivable city. We just take care of business that way.
Just like chigurgh said. They would want to you take care of the local business taxes by that time. Some call this tax a transient business tax. Which an out of town architecture business maybe considered as because we don't hold a permanent office in that city.
If I do a project in Seaside or Gearhart or Warrenton in Oregon, then I would pay the little fee. Same as with Illwaco (WA), Naselle (WA) or other cities in Washington. They probably be cool with us. Even if there is a so call late fee.... just assume the maximum amount (usually there would be) in your fee to the client. Build it into your charge as a sort of profit margin, extraneous business expense to serve that client.
Most cities will be cool if you didn't technically do it before contact with the client.
awaiting_deletion
Sep 3, 15 9:30 pm
look, i have inspected enough facades to know I should cross the street when a sidewalk bridge is up.....if the building is 100 years old its safe, if its shit 60's white brick your chances are good if they repointed in last 10 years, if its 90's you have another 10 and if it was built 10 years ago and has already earned a SWARMP report, cross the street.....some of this new shit doesn't have brick ties where they should be and the cheap builders winged it with guys who have no clue....fucking criminal....GET INSURANCE
poop876
Sep 4, 15 10:19 am
gruen is correct, there are states that do require even as an individual to have a registered company with that particular state!
Sep 4, 15 1:10 pm
Well, it is true that if an individual is using an Assumed Business Name then they are required to register the business name.
JBeaumont
Sep 4, 15 1:48 pm
In many states it's not just an issue of using an assumed name - all firms, including sole proprietorships using the owner's legal name are required to register as a firm with the state.
Here's one from Arizona:
"No firm shall engage in the practice of architecture, assaying, geology, engineering, landscape architecture or land surveying unless the firm is registered with the BTR and the professional services are conducted under the full authority and responsible charge of a principal of the firm, who is also a registrant. A “firm” means any individual or partnership, corporation or other type of association, including the association of a non-registrant and a registrant who offers to the public professional services regulated by the BTR."
Sep 4, 15 2:04 pm
JBeaumont,
Yes. I wasn't reading the question from the architecture licensing board perspective. You are right. In those cases, it may not matter what you name the business, registering with the arch licensing board. No argument of debate there. (Ok... semantic warning: I am aware some states require the business name to include architect, architecture, or architectural in the business name... some don't.)
Sep 4, 15 2:12 pm
gruen wrote:
Many states require you to be both licensed as an arch and have your arch firm be licensed, even if a sole prop. This is separate from business licensing that's req''d for corps, llcs etc. get a biz lawyer, worth it.
He's correct that there are states that requires any business that offers architectural services to be licensed/registered. Washington state is one example. If I added an architect (licensed in Washington... of course) as a business partner to my business and were to offer architectural services in Washington then I would have to register my business despite my business name.
and
JeromeS wrote:
gruen, expound please; What states?
NY requires corporate practices to be "licensed" but there is no similar requirement for a sole-proprietor, unless he wanted to use an impersonal name. Even then its a 25$ fee and a DBA form with the county clerk, not anything complicated.
Take a look at Washington state registered professional design firm. It is just a load of fun when dealing with multiple states.
Hello All,
I was recently contacted through a friend of a friend to do some minor exterior façade work. The work is minor but requires it to be filed with the building department, so I would I would be putting together drawings and working with an expeditor to do the paper work to be signed and sealed. I am currently writing a proposal for this work and was wondering if there is any legal concerns with filing drawings without a business. I am going to be setting up a business name with the state, but that probably will take some time to set up.
Does anyone know of any issues with writing a proposal and conducting architectural services without a state approved business name?
the state in which you reside matters.
care to clarify?
Are you using your real and true name?
I can't imagine that there is any state in the union that prohibits a licensed sole-proprietor, operating under his own name from sealing work...
assuming your license is insured with professional liability then using your name which is the name of your license is recommended. your question is not reallt an archit question its a business and state tax question.
also sounds like you may be in NYC, and if not the following statement still holds true - you better be well insured doing facade work.
While Olaf's suggestion is a good one- There is no requirement that you do carry professional liability. Many practices do not and the AIA has published amendments (see B503) for some other way to limit liability.
Get insurance. It's not super expensive. I carry a couple of mil. which I bought with the proceeds of something like three renderings for a client.
I've had a lot of landlords ask for proof of insurance when doing TI / retail / restaurant work here in NYC.
Many states require you to be both licensed as an arch and have your arch firm be licensed, even if a sole prop. This is separate from business licensing that's req''d for corps, llcs etc. get a biz lawyer, worth it
gruen, expound please; What states?
NY requires corporate practices to be "licensed" but there is no similar requirement for a sole-proprietor, unless he wanted to use an impersonal name. Even then its a 25$ fee and a DBA form with the county clerk, not anything complicated.
What Jerome said.
It's also worth noting that insuring the practice is almost functionally identical to insuring yourself in NYC, especially given the rules on professional coporations/llcs in NY. There are no corporate protections for EO issues when it comes to NY professionals.
Of course, don't quote me, I'm not a lawyer.
some municipalities require you to register a business in the jurisdiction and pay the associated fees before you can stamp and submit plans to the local building department.
insurance is always a good idea.
Many cities will be fine with out of town architects, designers, etc. to begin providing services to clients and getting your first chunk of money from the client to prepare plans. In which case, getting a retainer fee or upfront front loaded fee which should include covering costs like municipal business licenses. I actually have to do that in Oregon. There is a state business registration but individual cities have business licenses/occupation 'tax' that they charge which applies to me conducting business in that city even when I am not at all located in the city. They usually will be fine with it. This is due in part that at as service based businesses we don't spend money to every conceivable city. We just take care of business that way.
Just like chigurgh said. They would want to you take care of the local business taxes by that time. Some call this tax a transient business tax. Which an out of town architecture business maybe considered as because we don't hold a permanent office in that city.
If I do a project in Seaside or Gearhart or Warrenton in Oregon, then I would pay the little fee. Same as with Illwaco (WA), Naselle (WA) or other cities in Washington. They probably be cool with us. Even if there is a so call late fee.... just assume the maximum amount (usually there would be) in your fee to the client. Build it into your charge as a sort of profit margin, extraneous business expense to serve that client.
Most cities will be cool if you didn't technically do it before contact with the client.
look, i have inspected enough facades to know I should cross the street when a sidewalk bridge is up.....if the building is 100 years old its safe, if its shit 60's white brick your chances are good if they repointed in last 10 years, if its 90's you have another 10 and if it was built 10 years ago and has already earned a SWARMP report, cross the street.....some of this new shit doesn't have brick ties where they should be and the cheap builders winged it with guys who have no clue....fucking criminal....GET INSURANCE
gruen is correct, there are states that do require even as an individual to have a registered company with that particular state!
Well, it is true that if an individual is using an Assumed Business Name then they are required to register the business name.
In many states it's not just an issue of using an assumed name - all firms, including sole proprietorships using the owner's legal name are required to register as a firm with the state.
Here's one from Arizona:
"No firm shall engage in the practice of architecture, assaying, geology, engineering, landscape architecture or land surveying unless the firm is registered with the BTR and the professional services are conducted under the full authority and responsible charge of a principal of the firm, who is also a registrant. A “firm” means any individual or partnership, corporation or other type of association, including the association of a non-registrant and a registrant who offers to the public professional services regulated by the BTR."
JBeaumont,
Yes. I wasn't reading the question from the architecture licensing board perspective. You are right. In those cases, it may not matter what you name the business, registering with the arch licensing board. No argument of debate there. (Ok... semantic warning: I am aware some states require the business name to include architect, architecture, or architectural in the business name... some don't.)
gruen wrote:
Many states require you to be both licensed as an arch and have your arch firm be licensed, even if a sole prop. This is separate from business licensing that's req''d for corps, llcs etc. get a biz lawyer, worth it.
He's correct that there are states that requires any business that offers architectural services to be licensed/registered. Washington state is one example. If I added an architect (licensed in Washington... of course) as a business partner to my business and were to offer architectural services in Washington then I would have to register my business despite my business name.
and
JeromeS wrote:
gruen, expound please; What states?
NY requires corporate practices to be "licensed" but there is no similar requirement for a sole-proprietor, unless he wanted to use an impersonal name. Even then its a 25$ fee and a DBA form with the county clerk, not anything complicated.
Take a look at Washington state registered professional design firm. It is just a load of fun when dealing with multiple states.