LLC vs Inc vs nothing
LLC vs Inc vs nothing
(OP)
thread784-92621: Inc. Verses LLC or Nothing
Does anyone have experience establishing a mechanical design engineering consulting firm in Georgia? Specifically, LLC vs Inc vs nothing.
Thanks.
Does anyone have experience establishing a mechanical design engineering consulting firm in Georgia? Specifically, LLC vs Inc vs nothing.
Thanks.
RE: LLC vs Inc vs nothing
Dan - Owner
http://www.Hi-TecDesigns.com
RE: LLC vs Inc vs nothing
You can just work as an individual using your personal bank account. The disadvantage of that is:
1. You would have missed out on the PPP stimulus
2. You miss out on an additional layer of financial protection from liabilities
3. Tracking all your expenses is cleaner with a corporation.
4. It's less professional for clients
5. You have to mess with 1099 forms for every client every year
6. It makes it complicated to hire someone, even a 1099. How do you obtain workers comp for them?
7. It makes it complicated to obtain all the weird/frustrating insurances you need for more paperwork oriented clients, like General Liability, umbrella, etc.
The advantage of being an individual is:
1. you don't need to do an extra tax return
2. you don't need to shuffle money from your personal to corporate accounts
3. sometimes there are extra corporate taxes
4. its less brain space thinking about the corporate stuff
I would only work as an individual if I was doing small things for clients who aren't very formal or litigious, and I never wanted to hire anyone.
RE: LLC vs Inc vs nothing
RE: LLC vs Inc vs nothing
TTFN (ta ta for now)
I can do absolutely anything. I'm an expert! https://www.youtube.com/watch?v=BKorP55Aqvg
FAQ731-376: Eng-Tips.com Forum Policies forum1529: Translation Assistance for Engineers Entire Forum list http://www.eng-tips.com/forumlist.cfm
RE: LLC vs Inc vs nothing
RE: LLC vs Inc vs nothing
I think this is more of an accountant thing than a lawyer thing.
RE: LLC vs Inc vs nothing
RE: LLC vs Inc vs nothing
My bigger thing with this forum is that "go ask an attorney" is an unnecessarily cautious answer, and it leads to engineers not understanding legal things.
RE: LLC vs Inc vs nothing
How so? When some random EE poses a structural problem, do you recommend that they should understand how to do the problem, or do you recommend they contact a competent SE? As a PE, you are obligated to practice within your area of competence and expertise, and you'd consult with an EE, or ME, as required.
TTFN (ta ta for now)
I can do absolutely anything. I'm an expert! https://www.youtube.com/watch?v=BKorP55Aqvg
FAQ731-376: Eng-Tips.com Forum Policies forum1529: Translation Assistance for Engineers Entire Forum list http://www.eng-tips.com/forumlist.cfm
RE: LLC vs Inc vs nothing
RE: LLC vs Inc vs nothing
At the same time, however, every building owner should have a basic understanding of the structure of the building, how making changes might effect it, and how to recognize a problem. That doesn't mean the building owner should design said building, or determine the best repair method (though they should educate themselves to the point that they can understand on at least a basic level what is being done). And in this I agree with IR - professionals exist in our respective fields for a reason.
glass99- I wonder if your perception is skewed by your location? You're in NYC, correct? Maybe that drives those costs up disproportionately higher than other areas? A reasonable attorney around here can be had for about $200/hr for basic consultations. You're not getting a partner with 40 years experience in corporate law, but most of us don't need that. I'm going through the process now, so I'll try to come back and post some real numbers for my region when I have them.
RE: LLC vs Inc vs nothing
@phameng: yes you are right that lawyers are especially expensive in NYC. A professional services attorney that you would actually be able to help you is $400/hr.
RE: LLC vs Inc vs nothing
I agree that the owner/manager needs to understate the agreements.
I would hesitate to say that they should write them themselves. If the OP is just trying to set-up one or two projects, then the agreements and contracts are less important. If you are writing a large/risky contract - then the front end investment is worth it. Certain engineering specialties are inherently higher risk (e.g. vertical design - structural/MEP - and geotechnical). If engaging in this, then you better damn well make sure that your contracts and insurance are solid. Something less risky like planning or off-team reviewing, these details are less important.
The path of least resistance for the OP may be to try to purchase and use the EJCDC documents. But, you need to know what you need and what you are getting your client to sign.
RE: LLC vs Inc vs nothing
RE: LLC vs Inc vs nothing
Dan - Owner
http://www.Hi-TecDesigns.com
RE: LLC vs Inc vs nothing
RE: LLC vs Inc vs nothing
Dan - Owner
http://www.Hi-TecDesigns.com
RE: LLC vs Inc vs nothing
> what works and doesn't work
> in corollary, what is enforceable and what is not
> what is general accepted practice
> what is risky
TTFN (ta ta for now)
I can do absolutely anything. I'm an expert! https://www.youtube.com/watch?v=BKorP55Aqvg
FAQ731-376: Eng-Tips.com Forum Policies forum1529: Translation Assistance for Engineers Entire Forum list http://www.eng-tips.com/forumlist.cfm
RE: LLC vs Inc vs nothing
RE: LLC vs Inc vs nothing
TTFN (ta ta for now)
I can do absolutely anything. I'm an expert! https://www.youtube.com/watch?v=BKorP55Aqvg
FAQ731-376: Eng-Tips.com Forum Policies forum1529: Translation Assistance for Engineers Entire Forum list http://www.eng-tips.com/forumlist.cfm
RE: LLC vs Inc vs nothing
If there is one thing I know about developers, it's that their motivations can be inscrutable. Vendetta's, marketing, avoiding liability, tax breaks, and looking cool to their friends are but a few of many factors that will go into steel vs concrete decision. We the humble structural engineers merely provide technically correct information. And so they discuss it among themselves in spite of their lack of qualifications. They probably also discuss legal matters. It's we licensed professionals that get hung up on staying in our lane.
RE: LLC vs Inc vs nothing
That, and for all the good liability reasons above: Incorporate.
www.sparweb.ca
RE: LLC vs Inc vs nothing