How to Start and Engineering Company Part 1: Paperwork

in #blog6 years ago

I've recently been exploring what it takes to work for yourself as a professional engineer. To be honest, I don't know any engineer who has worked for themselves and Im beginning to understand why. It's a difficult thing to do and there are a stack of liabilities that the engineer of record holds once they sign and seal a set of drawings. So why do it?

It seems that most engineers are in the business to engineer solutions and not for money. Unforunately, a structural engineer can only make so much as an employee of a large company, so working for yourself becomes the only way to profit from the hard work necessary to become an professional engineer.

The reality is that there are many headaches and costs associated with becoming an engineer, therefore you have to understand what the risks are. What better way than to go headfirst and form a company? My research into this matter is quite in depth but it's not backed by any actual work, so Im going to document my journey to creating an engineering company. What happens after that is beyond me. It's unlikely that I will quit working for a large company because the benefits of Healthcare, 401k and low stress outweighs a company with no clients.

Forming a Professional Limited Liability Company (PLLC)

There are many types of companies that can be created, depending on their size and type of ownership. For individuals making small amounts of money on the side, the preferred company type is an LLC, or limited liability company. To further that even more, people who wish to provide professional services are required to create a PLLC, or Professional Limited Liability Company.

The Nys Department of State requires you to submit an Articles of Organization, which describes the names of the owners , and where they live. This form is submitted to the department of state (who controls all commerce activity in the state) and within 30 days, also sent to the department of education for verification of professional certification.

So with that said, I've formally submitted my company to the NYS Department of State for review and within 2 months, I should have my own company with 1 owner and 1 employee.

Ive decided to name my company

Factory Engineering Works

Heres the quote direct from the Department of State

Articles of Organization Professional Service Limited Liability Companies

A professional service limited liability company may be formed by filing Articles of Organization pursuant to Section 1203 of the New York State Limited Liability Company Law. A Certificate of Good Standing from the appropriate Appellate Division or a Certificate of Authority (Form PLS709) under seal from the New York State Department of Education, Division of Professional Licensing Services, Corporations Unit, 89 Washington Avenue, 2nd Floor, Albany, NY 12234, must be submitted with the Articles of Organization.

For a listing of professional services, please see New York State Department of Education, Office of the Professions.

The completed Articles of Organization, together with the filing fee of $200, should be forwarded to the New York Department of State, Division of Corporations, One Commerce Plaza, 99 Washington Avenue, Albany, NY 12231.

Section 1203 of the New York State Limited Liability Company Law requires a notice related to the formation of a professional service limited liability company (PLLC) to be published in two newspapers. The newspapers must be designated by the county clerk of the county in which the office of the PLLC is located. A Certificate of Publication, with the affidavits of publication of the newspapers annexed thereto, must be submitted to the New York Department of State, with a $50 filing fee.

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