Advise for starting a consultant business on the side

[hjg7715]

I know I recall seeing a thread related to this topic, but couldn't locate it. But I'm just curious to get feedback or advice from anyone who's started an engineering consultant business on the side or is doing engineering consultant work aside from full time employment. Would you advise setting up an LLC or doing work as a sole proprietor? And might I be required to get approval from state board or additional engineering license for the business if I perform professional engineering work? And is there anything else I might need to take in consideration?

 

[Ken PE 3.1]

I know I recall seeing a thread related to this topic, but couldn't locate it. But I'm just curious to get feedback or advice from anyone who's started an engineering consultant business on the side or is doing engineering consultant work aside from full time employment. Would you advise setting up an LLC or doing work as a sole proprietor? And might I be required to get approval from state board or additional engineering license for the business if I perform professional engineering work? And is there anything else I might need to take in consideration?

Ummm. Yes you are required to get licensed from the state. Each state issues a certificate of authorization to the firm, no matter what status; i.e. sole proprietor, llc, etc.

 

[hjg7715]

Ummm. Yes you are required to get licensed from the state. Each state issues a certificate of authorization to the firm, no matter what status; i.e. sole proprietor, llc, etc.

I figured that may be the case for an LLC, but wasn't sure about operating as a sole proprietor. Additionally, I think I was curious to know about requirements or necessity of liability insurance? I don't have any intentions or want to do any design work on the side, but work more as a consultant for small businesses or property owners to assess engineering related issues.

 

[cupojoe PE PMP]

I figured that may be the case for an LLC, but wasn't sure about operating as a sole proprietor. Additionally, I think I was curious to know about requirements or necessity of liability insurance? I don't have any intentions or want to do any design work on the side, but work more as a consultant for small businesses or property owners to assess engineering related issues.

You could still get sued.

 

[hjg7715]

You could still get sued.

Absolutely, hence the reason I'm inquiring about it. Even if I wasn't offering professional engineering services, I could still get sued. But again, my vision is to only help identify issues and offer recommendations to clients on how to proceed. I don't anticipate or desire to generate detailed design or improvements plans. I envision being more of a liaison for the business or property owner in helping them hire a firm that would actually provide the professional engineering services. In actuality, I would like to limit the need for me to perform work that requires my professional seal.

 

[Ken PE 3.1]

25 minutes ago, cupojoe PE PMP said: You could still get sued.

Absolutely, hence the reason I'm inquiring about it. Even if I wasn't offering professional engineering services, I could still get sued. But again, my vision is to only help identify issues and offer recommendations to clients on how to proceed. I don't anticipate or desire to generate detailed design or improvements plans. I envision being more of a liaison for the business or property owner in helping them hire a firm that would actually provide the professional engineering services. In actuality, I would like to limit the need for me to perform work that requires my professional seal.

The first rule of thumb, imho, is: if you have to ask, you're not ready.

 

[willsee]

So you're going to be an Owner's Representative?

 

[hjg7715]

So you're going to be an Owner's Representative?

That's exactly the type of consultant work I had in mind.

 

[willsee]

How would that work apart form your 8-5?  Usually Owner's reps are there for a good amount of time both during design as well as construction (especially construction) and you don't want to be the guy everyone is looking for to get construction going again when guys are standing around with shovels in the ground making however much an hour.

I would just do a sole prop

Sounds like you aren't doing engineering (you don't even have to say you're an engineer) so you wouldn't need to register with the state engineering board.  Insurance can go either way on whether or not you get it.  Some people do, some people don't.

 

[hjg7715]

How would that work apart form your 8-5?  Usually Owner's reps are there for a good amount of time both during design as well as construction (especially construction) and you don't want to be the guy everyone is looking for to get construction going again when guys are standing around with shovels in the ground making however much an hour.

I would just do a sole prop

Sounds like you aren't doing engineering (you don't even have to say you're an engineer) so you wouldn't need to register with the state engineering board.  Insurance can go either way on whether or not you get it.  Some people do, some people don't.

Again, I would avoid taking on work or responsibilities that require continuous oversight or more hours than I could commit. I would prefer to limit my involvement to initial assessment and consultation and limit follow up to as needed only. And I would limit my work to outside of the municipality where I'm currently employed to prevent any type of professional conflicts and work would have to be done outside of my regular work hours.

And I have considered that what I have in mind may not be considered "professional engineering services" but I certainly would want to use my professional experience and licensing as qualifications for potential clients. So therein lies a dilemma on whether I can promote myself as a professional engineer if I don't intend or want to offer services that requires my seal.

 

[cupojoe PE PMP]

In my state, just having the word engineering in your business title requires you to have a COA (as I understand the rules).

 

[RickJames]

Along this line, suggestions for insurance for work on the side?

Work is actually based on another Certification not PE if it matters.

 

[willsee]

I went through my broker who does my auto/home insurance and they found my E&O provider, so all of my insurance just goes through one person.