Certificate of Incorportation and Authorization

[Jambruins]

I am starting a sole proprietorship engineering business in NY. Do I need to obtain a certificate of incorporation and then a certificate of authorization? I have checked the website and it looks like I do but I am not sure if this applies to sole proprietorships. Thanks.

 

[MiketheEngineer]

Call them and ask them OR talk to your lawyer. The first idea is mucher cheaper. And they will probably say "yes" since it means more money in their pocket.

 

[rbulsara]

Yes, you do. You will also need your Agents in each of those 'foreign' states. Normally they are listed on State's websites. Pick one of them, probably not the law firms, there are other companies that provide agent services in more than one states (so you deal with only one agent) and reasonable rates.

Whether or not you ask, you need to observe laws. While annoying, they are not worth ignoring or breaking.

Rafiq Bulsara

http://www.srengineersct.com

 

[zdas04]

Contact them. In New Mexico, I got a business license without incorporating. I know people in New York that are doing business as partnerships and sole proprietorships without any incorporation papers. Check with the regulator. Check with an attorney.

David Simpson, PE
MuleShoe Engineering

http://www.muleshoe-eng.com

Please see FAQ731-376 for tips on how to make the best use of Eng-Tips Fora.

"It is always a poor idea to ask your Bridge Club for medical advice or a collection of geek engineers for legal advice"

 

[rbulsara]

You do not have to be a corporation. All you need is a Certificate of Authority which requires that your business be registered as a foreign business, be it a corporation, LLC or Sole proprietorship, and you are authorized to conduct business there. There are different forms for each type of businesses. You will also need a Certificate of Good Standing or Existence from your own/original state.




Rafiq Bulsara

http://www.srengineersct.com

 

[Jambruins]

I haven't called them yet but I found this which makes it sound like I do not need to get a certificate of authorization.

Section 7210 of the New York State Education Law requires that all business entities (not individual licensees) legally permitted to provide professional engineering services in New York State obtain a “Certificate of Authorization” from the State Education Department. The law also allows, but does not require, licensed individuals who are legally permitted to provide professional engineering services in New York State as sole proprietors to obtain a “Certificate of Authorization”.

In summary, the following business entities may provide professional engineering services in the State of New York with a “Certificate of Authorization”.

sole proprietorships (Certificate of Authorization is optional)
domestic and foreign professional service corporations
domestic and foreign professional service limited liability companies
professional partnerships
registered limited liability partnerships
foreign registered limited liability partnerships
“grandfathered” general business corporations under section 7209

 

[rbulsara]

You may check but in your home state you do not need certificate of authorization (COA) but you need to register your business. COA is required for 'foreign' entities, that is the businesses originally formed in other states.

Rafiq Bulsara

http://www.srengineersct.com

 

[Ron]

As noted, you do not have to be incorporated as a sole proprietor. It might offer some tax advantages and some liability protection, but is not a requirement. A sole proprietorship is a valid form of a business entity.

Licensing varies with locale. Most municipalities require an occupational license, without regard to your engineering license. It just licenses you as a business. If you name your business something besides your own name, you will likely have to register under a fictitious name statute. Many state engineering boards do not require a certificate of authorization to practice as a sole proprietor...only your engineering license. Again, if you name the business, they will likely require a certificate of authorization for that business.

Check with your state board and your local taxing authority about the two different forms of licensing.

 

[eyec]

before you go sole prop check into Subchapter S Corp.
limits on personal liability and beneficial tax breaks.

disclaimer
i am not a lawyer or cpa and have never played one on tv or stayed at a holiday express (recently)

 

[Jambruins]

I called them and sole proprietorships do not need to obtain a certificate of authorize or incorporation. Thanks for the help.