I had my own business a while back (10 years ago) before a large firm called needing my expertise - with better pay. My firm was a LLC as opposed to an S-Corp - firm was in Tennessee.
I highly recommend you get the following "experts" under your belt first:
1. Accountant - to offer tax advice and make sure you get to take home all of the money you can.
2. Attorney - to write your legal documents to set you up for long term success. You may be a sole practitioner today, but plan to one day add a partner or partners. Think LONG TERM when you set up the entity.
3. Professional Liability Insurance Agency: Talk with them about the limits of professional liability you really need. This is what sets a "fly-by-night" drafting firm from a licensed architecture firm. Remind your clients of this if they question your fees.
4. Banker: Someone who helps you keep your FAMILY money separate from your COMPANY money. Never the two should mix - otherwise you will open up your FAMILY money to someone trying to take your COMPANY money. ALWAYS keep them separate. (See also - Accountant).
5. A Mentor: Someone with gray hair (or no hair) who has been through the industry ups and downs and can provide you advice/recommendations - and allows you to make your own decisions thereafter.
6. A well-informed spouse: THIS SHOULD PROBABLY BE NUMBER ONE ON YOUR LIST. If you are married, make sure that your spouse understands all of the business decisions that you are making. Do NOT keep any secrets from this person. Because when times are tough - and face it, there are always going to be fluctuations in this industry - he/she will need to be understanding when you and your family are living on rice and beans or tuna fish.
RECOMMENDATIONS:
1. When times are good. Enjoy a steak/great meal every once in a while. You will want to remember this meal later when you are eating the rice and beans or tuna fish.
2. Remember the story of the ant and the grasshopper. Be an ant and not a grasshopper.
Best wishes for a long and happy career...
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Ket West AIA
Associate, Architect
Hafer
Owensboro, KY
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Original Message:
Sent: 05-02-2020 13:11
From: Jerry Roller
Subject: Sole Props/LLC/PC/DPC/S-CORP/C-CORP/ETC - Advice?
Congratulations! Sounds like you are off to a good start.
We have been an LLC for 20 years, and it has allowed us to grow and expand ownership.
Nevertheless, the firm organization is a legal and accounting issue, and you should discuss with your attorney and your accountant. Besides limiting liability, the varying forms have different tax implications. You should also be aware of specific implications in NY .
good luck
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Jerry Roller AIA
JKRP Architects
Philadelphia PA
Original Message:
Sent: 04-30-2020 19:48
From: Matthew Wang
Subject: Sole Props/LLC/PC/DPC/S-CORP/C-CORP/ETC - Advice?
Hello.
I am looking to start my own firm by myself (for now) and already have a couple of clients, ready to go. I have found plenty of resources on the discussion of LLC versus PC (or DPC, since I am in New York) and other business structures, but have yet been able to find anything specific to architecture. If you've been through this before, would you mind sharing what decision you came to and the thought process behind it?
Or if you know of any existing posts or publications I can reference, please share.
I'm in New York. My projects are in Massachusetts and New York. Residential interior renovations for now, with hopes to grow.
Thanks!
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Matthew Wang, AIA, LEEP AP BD+C
New York, NY
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