Question for California PEs: PE as RIC for a Business — Legal and Compliant

Typically engineering business owners must be PEs, with select exemptions but always one must be a PE and non PE a certain percentage. Likely option 1 isn’t going to work and I don’t know why you would even want it, option two your business would be a drafting service that a PE would subcontract you for work. You really need to be an employee of the PE to be considered under their supervision in a sense.

What’s your end game here?

@dgengineering are you currently employed by a company as a W-2, and trying to do some moonlighting, or are you currently not employed by anyone (other than your own business/yourself)?

Trying to run a company as an EIT in the engineering space will be near impossible for many reasons, aside from being a drafting service as jhnblgr said. And I doubt that would be considered as qualified experience toward getting your PE license.

Is there a reason you can't put this ambition on hold until you have your PE? I assume you are young and working toward your PE, then go work for a company under a PE until you get your PE license. You don't know what you don't know, and the only way you are going to know is by learning under a PE willing to teach you or in a court room with any hope of an engineering career stripped from you.

To specifically answer your questions.
1. Owner (or % of owners) of any engineering firm needs to be a PE, and you cannot advertise any engineering services to the public unless you are a PE or work for a company owned by a PE. The PE would need to be at least 50% owner (confirm California's specific ownership requirements) of the firm offering the engineering services.
2. This is called a 1099 contractor. Yes, the PE can hire your services (regardless of whether you are a sole proprietor or LLC), and your services will be solely to the PE, not to the end client. You cannot be the one getting the clients in this arrangement. Yes, the PE can still consider you under his responsible charge since the PE is essentially paying for drafting/plug and chug services, but you would not necessarily be under his direct supervision when recording experience for your PE application.

No business yet. I work in a PE owned firm now with w-2. I was just speculating. I think I will just stick to my job and pursue my PE now. Thank you for your answers

Also when you work for yourself you have to remember all the tax liabilities and such.