# Starting a Consulting LLC



## Kathristin (Jan 17, 2018)

I am a mechanical engineer with 15 years experience and a NJ PE. I am looking into starting my own LLC, but I don’t know where to start. My intent would be to work with larger consulting firms on an as needed basis, acting as a member of their project team. I already do this on a 1099 basis with one firm, but I have 2 others interested in working with me. I would not need to find my own clients and I am not looking replace a full time salary.

Do I contact a lawyer, an accountant? What do I do about liability insurance. NJ laws and statutes seem to be more confusing than other states. 

Any advice would be greatly appreciated.

Thank you


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## Kathristin (Jan 17, 2018)

Edit: I meant part time employee, not 1099 employee.


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## knight1fox3 (Jan 17, 2018)

@willsee, @SE_FL


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## youngmotivatedengineer (Jan 17, 2018)

The best thing to do would be consult with an experienced attorney.  He should be able to let you know all of the legalities you need to follow and help get the corporation documents filed. The attorney should also be able to review your proposal template to make sure you protect yourself legally.


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## MikeGlass1969 (Jan 17, 2018)

I contacted a lawyer I personally know and knew they had prior experiences in setting up an LLC.   Cost was like $650...   I then talked to other contractors I also knew and asked them what insurance companies they used.   I also contacted clients on what their insurance requirements were for being onsite.  

General Liability was $600/yr

Workmans Comp. was like $600/yr  (this was optional for me but took it in case i fell off a 40 foot roof during an inspection)

Professional Liability was difficult for me to get...


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## MikeGlass1969 (Jan 17, 2018)

I also have to get comfy with Quickbooks...


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## SE_FL (Jan 18, 2018)

I have four friends that are attorneys and about six accountants, and the attorneys in my city don't like setting up LLC's and only a few accountants will do it and explain the benefits of each way. There are a few ways and they all have benefits/risks. But in Florida, the state statues changed regarding how an S-Corp is taxed and everyone is switching from INCs to LLCs. I would start with a small business account that specializes in this to ensure the articles allow for the most tax breaks. Generally you want to lean heavily on distributions over of pure income for the first few years.

The liability insurance may depend on the way your state manages engineering firms and if you want to be personally insured or insured through the LLC. If you will have employees it's a whole different story and a CA# will add some complexity. I priced several insurance companies (for civil-structural) and the most affordable options were through American Society of Civil Engineers through a broker backed by Lloyd's of London. That cut my cost in half and the deductibles were much better. You don't want an insurance company to try and represent you with a incompetent attorney or special witness testimony. It needs to be their specialty.

I also like working with the accountant because I was able to add on to their Quickbooks online subscription (for billing and payroll) to work on that from my office or my house without VPN.

Yes, @youngmotivatedengineer is right about having an attorney review your proposal. The right attorney may have a template for you to follow as well.


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## youngmotivatedengineer (Jan 18, 2018)

In NJ a CA# is required to do engineering work under a company.  In regards to insurance,  make sure you are specific in the type of services you will be offering.  From speaking with my boss, if certain areas of work are included, his insurance premium increases drastically.


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## Dean Agnostic (Jan 19, 2018)

In addition to the above suggestions*, *please see the following articles of incorporation below for your *guidance only*. My superiors and I used this, specifically for LLC business structure in Florida and in United States Territories. You may also want to research about Single Member LLC business Structures as this may be allowed in NJ. Also, there will come a time that you will become a supporting member of EB when you receive that big fat check under your new company   .  Good luck and more blessings!

*ARTICLES OF ORGANIZATION FOR*​
*COMPANY NAME: ____________________________*​
                The undersigned persons, acting as the organizers of a limited liability company under the State of Florida/US States Territories Limited Liability Company Act, hereby adopt the following articles of incorporation:

1.  *NAME*. The Name of this limited liability company is Company Name______________________

2. *DURATION*. This limited liability company’s period of duration is 100 years from the date of filing this Articles of Organization with the  Department of Revenue Taxation U.S. Territory, unless sooner dissolved by the members or as provided by statute.

3.  *PURPOSE*. This limited liability company is organized to conduct all lawful purposes allowed under the Florida/US Territories Limited Liability Company Act, except that of banking and insurance.

4. *PRINCIPAL PLACE OF BUSINESS*. The address of its principal place of business is:

     _______________________________________________________

5. *REGISTERED AGENT AND OFFICE*. The name and address if its registered agent, whose “Consent to Appointment as Registered Agent” is included with these articles, is:

     _______________________________________________________

6. *Capitalization*. The capital contributions of members have an agreed value of $_____________, with each member contributing $__________________

7.  *Additional Capital Contribution of members*. Additional capital contributions may be contributed only upon the unanimous vote of the members, and never can an additional capital contribution be required at the request of non-member third parties.

8. *Admission of additional members*. Additional members may be admitted only upon such terms as are unanimously agreed to by all members pursuant to provisions in the operating agreement.

9. *Continuity*. The members of this limited liability company have the right to continue the business upon the death, retirement, resignation, expulsion, bankruptcy, or dissolution of a member, or occurrence of any other event which terminates the continued membership of a member in this limited liability company. Continuation may occur only pursuant to the terms of the operating agreement and with the unanimous vote of the members.

10. *Management*. The business of the company shall be conducted under the exclusive management of its members who shall vote according to their proportionate capital interest in the company and shall have exclusive authority to act for the company in all matters. The names and addresses of the members of the company are:

_

11. *COUNTERPARTS*. This agreement may be executed in counterparts, all of which shall be deemed to be one and the same instrument. It shall be sufficient for each party to have executed at least one, but not necessarily the same, counterpart.

Dated this______________ day of ___________, 2018.

Organizer

Name:

By __________________________

Its Authorized Representative

*Consent to Appointment as Registered Agent*​
* *​
I, ___________________________, accept appointment as registered agent, and further state that I am​
familiar with the duties of a registered agent.

 ​
 ​
______________________________

Name:

Registered Agent

 ​


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## willsee (Jan 26, 2018)

Kathristin said:


> I am a mechanical engineer with 15 years experience and a NJ PE. I am looking into starting my own LLC, but I don’t know where to start. My intent would be to work with larger consulting firms on an as needed basis, acting as a member of their project team. I already do this on a 1099 basis with one firm, but I have 2 others interested in working with me. I would not need to find my own clients and I am not looking replace a full time salary.
> 
> Do I contact a lawyer, an accountant? What do I do about liability insurance. NJ laws and statutes seem to be more confusing than other states.
> 
> ...


In Kentucky you just fill out a form and send it in and voila you're an LLC (oh and pay some money)

It sounds like you're a W2 employee for these people so why do you need an LLC?  Something seems off here.  If you're a W2 then you should be covered by them as far as insurance and all that but you should make sure of that.

Are you stamping drawings? What are you doing for them?


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## edcar27 (Feb 27, 2018)

Started my engineering firm 6 years ago. No attorney needed. No accountant needed. Only $75 needed at the time in Louisiana to officially open an LLC. Then, I paid whatever it was to have the company registered as a licensed engineering firm in Louisiana. I mostly just jumped right in after losing a job with a large consulting firm. Things worked out, but had I thought more about it, I might have done some things differently. But then, I might never have done it either. I am extremely happy that I did and I would want to have it no other way at this point.

If you ever need any specific questions answered, feel free to contact me any time.

Ed


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## willsee (Feb 28, 2018)

edcar27 said:


> Started my engineering firm 6 years ago. No attorney needed. No accountant needed. Only $75 needed at the time in Louisiana to officially open an LLC. Then, I paid whatever it was to have the company registered as a licensed engineering firm in Louisiana. I mostly just jumped right in after losing a job with a large consulting firm. Things worked out, but had I thought more about it, I might have done some things differently. But then, I might never have done it either. I am extremely happy that I did and I would want to have it no other way at this point.
> 
> If you ever need any specific questions answered, feel free to contact me any time.
> 
> Ed


Basically what I did.

Minus the losing job part.


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## the comeback kid (Apr 16, 2018)

knight1fox3 said:


> @willsee, @SE_FL
> 
> HI Guys,
> 
> ...


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## the comeback kid (Apr 16, 2018)

I Guys,

I am in the same position. I just lose my job 2 weeks ago, just had a new babe, and been looking for work, but have not been able to find one. Since I got my PE in 15 states, I came up with a plan and idea to open Electrical, commissioning, and Electrical contractor LLC. I live in MA and planning on moving back to Florida in like 3 to 5 years. My questions are the following below:

Would it be a great idea to open this business with those 3 section?

I don’t have my EC, is it best to take it in FL and only practice all three there?

If I go out on my own, where can I go to look for clients?

Is there a website I get go to obtain new work?

Where can I ads my work and skill to new clients?

Please help me ?

Thank you very much guys for the help!


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## willsee (Apr 17, 2018)

You should start a business in whatever your experience is in

If you have no experience contracting I wouldn't get into it unless you're prepared to go through the lumps and pain.  There is more money in contracting but also more risk

You look for clients on google - who were your previous clients at the company you worked for

Look at your state procurement page for requests for qualifications - call previous clients

You can advertise your work and skills on a website - or a flyer - or a direct mail piece via USPS


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