Structural Engineer Company Setup LLC question
Structural Engineer Company Setup LLC question
(OP)
I am interested in setting up an engineering company. I have been doing research lately and have found 2 different LLC types. There is the regular LLC and the professional LLC (PLLC). Some claim the PLLC is necessary for practices requiring licenses, such as engineering, lawyers, etc. A friend of mine didn't use a PLLC but because of that he has the checks for his jobs written in his name ( I think that's what he said). In any case does anyone have any experience with this? What company structures do you use?





RE: Structural Engineer Company Setup LLC question
I was originally set up in a PC with my business partner. After he passed away about a year ago I have since formed a new company as a sole proprietor. I have no wishes to employ other people other than as sub contractors. I talked to a few people about it and they basically said that a PC offers no protection against lawsuits since a skilled lawyer can easily pierce the corporate veil and get you personally for mistakes. I'm sure others will strongly disagree.....In the future if things work out I may decide to for again under some sort of corporate veil.
RE: Structural Engineer Company Setup LLC question
Best idea is to check with an accountant or attorney in your location.
As far as the US federal government is concerned, PLLC is the same as LLC. They call you a partnership, sole proprietor, or corporation, depending on your declarations.
I agree somewhat with SteelPE, but not totally. Protection varies by location too, unless the case goes to federal court in the US. According to our attorney, with only one or two members, an LLC is more vulnerable to "piercing the corporate veil" under state law in the event of negligence, errors, and omissions. That's why we buy insurance, just as a sole proprietorship or corporation should. However, financial protection for the members in the event of non-professional liability that does not involve personal malfeasance is pretty tight for defaulting on loans, bonds, or other debt instruments, and employee injuries and other stuff. Again, the level of liability limitation varies from state to state in the US, and from country to country around the world.
Good on ya,
Goober Dave
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RE: Structural Engineer Company Setup LLC question
Robert Billings
www.newrivereng.com
RE: Structural Engineer Company Setup LLC question
Quite frankly, this is a question to ask your lawyer and accountant. In addition to legal questions, there are tax questions to be considered as well. I consulted both before setting up as an LLC.
Good luck with your new venture - it is an adventure for sure.
LJ
RE: Structural Engineer Company Setup LLC question
RE: Structural Engineer Company Setup LLC question
So how are the taxes easier?
TTFN
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RE: Structural Engineer Company Setup LLC question
This essentially makes the taxes easier because an "S" corporation is a pass through structure. You report retained earnings on your personal tax return.
Robert Billings
www.newrivereng.com
RE: Structural Engineer Company Setup LLC question
RE: Structural Engineer Company Setup LLC question
TTFN
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RE: Structural Engineer Company Setup LLC question
RE: Structural Engineer Company Setup LLC question
After exploring the resources, if you still want to go forward it is time to get a good small business lawyer.
RE: Structural Engineer Company Setup LLC question
TTFN
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RE: Structural Engineer Company Setup LLC question
I fully agree both are needed before actually launching.
RE: Structural Engineer Company Setup LLC question