Consulting FIrm Ownership

[hdp321]

I am currently talking with two fellow employees about possibly starting our structural consulting firm.

I am young and currently sitting for the SE exam, while the two other guys are a little older and are PE's in the states we would work in.

Most likely, ownership of the firm would be split equally three ways. My question is is there anything restricting me from having an ownership stake in the consulting firm, being I'm not yet a registered PE/SE?

 

[zdas04]

Check with the board of licensure of your state. In my state, for a firm to offer engineering services to the public it must have at least one PE in a policy-making position. The law in this state (and the sample language that NCEES provides) has no restriction that requires all of the principals of an engineering firm to even be engineers, let alone licensed.

David Simpson, PE
MuleShoe Engineering

"Belief" is the acceptance of an hypotheses in the absence of data.
"Prejudice" is having an opinion not supported by the preponderance of the data.
"Knowledge" is only found through the accumulation and analysis of data.

 

[Ron]

Agree with zdas04. Usually as long as one of the officers is a licensed engineer, it's OK. Be careful with naming the firm. If your name is on the banner, some states will require that you be licensed.

 

[MiketheEngineer]

If you are dong work in NY - look carefully. While I agree with what has already been said - NY has some REALLY STRANGE laws and rules....

 

[Maui]

Mike, could you elaborate?

Maui

http://www.EngineeringMetallurgy.com

 

[MiketheEngineer]

No - when I had my lawyer read them - he had trouble!!! and really never gave me a good answer.

Read them and you will see....

 

[hdp321]

We will be doing a significant amount in NY and NYC.

We will certainly look into it. I was just hoping someone had personal experience.

Thanks for the replies

 

[SLTA]

I'd recommend talking with a tax accountant and the NY State licensing board. The tax accountant can give info on the least expensive option for you, and the licensing board can clarify any percentages of owners who must be licensed. When I started up, I had a book called "Starting a Small Business in NC" or something like that, which clearly laid out all the steps for choosing a type of corporation, filing paperwork, etc. I'm sure there's a similar book for NY. Good luck!

 

[MiketheEngineer]

I gave up, simply applied, no one asked any questions and I got my license. I think the main problem might be the COA - which you might need.

 

[dig1]

Mike is correct and I would also encourage you to look closely. NY requires in most cases that all owners be licensed and only certain business forms (PC, PLLC, or certain partnerships) are allowed. It looks like if you are not licensed, own less than 25% of the business, and it was formed after 1-Jan-12 it is ok. My business is a PLLC in NY and it was relatively easy to set-up. Although, I can see some very real difficulties if your business was originally set-up in another state and wanting to practice in NY with the issue around the COA more than the engineering license.

Here are some links:

http://www.op.nysed.gov/corp/pcorpdpc.htm

http://www.op.nysed.gov/corp/pcorpdpc.htm

http://www.op.nysed.gov/corp/pcorpllp.htm

http://www.op.nysed.gov/corp/pcorpcoa.htm

http://www.op.nysed.gov/corp/pcorpdompllc.htm

I hope this helps

Patrick

 

[hdp321]

Thanks guys. We'll actually be registered as a business in PA. Sorry for the.misunderstanding. We do a lot of work in surrounding states.

 

[MiketheEngineer]

dig1 -

If believe the COA was the problem.... we have like 2,000 "owners" - theoretically