Engineering Administration
Engineering Administration
(OP)
Any one has tips as to how gradually shut down (looking to retire)a small structural office after 19 years of operation? No one to take over. Have clients and have work, but work always fluctuates(as we all know), but it has been lots of fun. Thanks for any comments!






RE: Engineering Administration
Where are you located?
Dik
RE: Engineering Administration
Here are my experiences and views:
1. Talk with your accountant to see if your (corporate?) structure would have value if sold outright. Other firms may receive a financial benefit by purchasing an ongoing company shell (complete with employees, minus you). If not, then...
2. Privately talk with any key employees who you want to stay on for a while. The same day tell EVERYONE in the company exactly what you plan to do. I guarantee you that the employees know more about the details of your business than you think they do - without information, rumors start. Some employees, may leave immediately, but you are probably better off without them anyway.
3. As soon as possible brief your customers/clients, suppliers, AND competitors - you want to help your employees get new jobs when the time comes.
4. Obviously, stop taking on new work. Complete existing projects in an orderly, professional manner.
5. As resources are no longer needed, get rid of them, hopefully by selling.
6. Be sure to continue the everyday administration of business matters (tax withholding, insurance coverage, bill payment, etc.)
7. As things come to a stop, do whatever it takes to help former employees get good jobs. I held a "job fair" on the final construction site and invited competitors to come interview employees. Remain available as a reference.
8. See your accountant to close out the books, file final tax return, cancel corporate charter, etc.
9. Distribute net proceeds to investors.
Doing this is a challenge, but has its rewards.
Best Wishes
www.SlideRuleEra.net
RE: Engineering Administration
Cheers
Greg Locock
Please see FAQ731-376 for tips on how to make the best use of Eng-Tips.
RE: Engineering Administration
www.SlideRuleEra.net
RE: Engineering Administration
RE: Engineering Administration
The PE who stamped the drawings.
RE: Engineering Administration
You should talk to your liability carrier about purchasing "tail" insurance (no pun intended, that's what it is called). I shut down my own little one man structural company two years ago and was only able to purchase 3 years of "tail" insurance.
Colorado is one of the few states that do not allow torts against the husband go against the wife, or visa versa. Thus, I "own" nothing: the house, cars, etc. are all in my wife's name. This may be an option too. Specifically, if you have no real personal assets, and you are retired and have no wage to garnish, then I expect it would not be worth a lawyer's time to go after you in the event of a claim.
RE: Engineering Administration
RE: Engineering Administration
RE: Engineering Administration
The plaintiff's lawyer needs to get through the corporation first, which in legal slang is called "piercing the corporate veil". Now whether piercing the corporate veil means being able to name the business principals and/or the specific EOR as a defendant is not super clear to me.
My limited understanding is that it is unlikely, but not impossible, to be held personally liable as either the EOR or a principal. I may be wrong about this and honestly I hope you are right.
This is getting off topic but is a very interesting question. Want to post this as a separate thread?
RE: Engineering Administration