5 - Legal Structures

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5 - Legal Structures by Mind Map: 5 - Legal Structures

1. Self Awareness

1.1. Tolerance for risk

1.1.1. Mitigated by careful choice of clients and projects

1.1.2. Provide health insurance

1.1.3. Following best practices n terms of agreeements and documentation

1.2. Level of Comfort with collaboration

1.2.1. Control-centered practices

1.2.1.1. Solo Practitioners

1.2.1.2. Sharing only minimum necessary for subconsultants

1.2.2. Collaboration-centered practices

1.2.2.1. Information, knowledge, drawings (or models) are shared with team participates

1.2.2.2. IPD: Integrated Project Delivery

2. Writing a Business Plan

2.1. Marketing

2.1.1. Relationship-building and networking plan

2.1.2. Target market

2.1.3. Key differentiators

2.1.4. Image and brand

2.1.5. External market conditions and competition

2.2. FInance

2.2.1. Revenue goals over time

2.2.2. Scenario plans for firm revenue and staffing over time

2.2.3. Profit plan over time

2.2.4. Operating budget expectations over time

2.2.5. Financial expectations of owners

2.3. Operations

2.3.1. Organization Structure

2.3.2. Project delivery model

2.3.3. Technology upgrades and integration

2.3.4. Knowledge acquisition and development

2.3.5. Promotion, recruitment, and compensation

2.4. Purpose

2.4.1. Firm Future, including transition plan

2.4.2. Project Types? Client Types?

2.4.3. Core Competence an Core Weaknesses

2.4.4. Firm Size

2.4.5. Market Opportunities and threats to market position

2.4.6. Career Contentment and Disposition of Owners

2.4.7. Philosophy / Core Values

2.5. Documentation of intentions and proactive measures to accomplish goals

3. FIRMS BUSINESS MODEL

3.1. COMPLEX PROJECTS

3.1.1. Expertise - Experience

3.2. ANY PROJECT THAT COMES THROUH THE DOOR

3.2.1. Generalist: Complex Projects

3.3. EFFICIENCY-BASED

3.3.1. Specialists: Routine Project

3.4. EXPERIENCE-BASED

3.4.1. Generalist: Complex Project

3.5. EXPERTISE-BASED

3.5.1. Specialist: Complex Projects

3.6. SPECIALIST

3.7. GENERALIST

3.8. Strategic

3.9. Opportunistic

3.9.1. Most start this way

3.10. Expertise-Based

3.10.1. Profitability depends on high hourly rates for services

3.10.2. Administrative help advisable to free principals to do billable work

3.10.3. Service offering deep knowledge/exceptional talent "starchitects"

3.11. Experienced-Based

3.11.1. Initial management challenge is to match project task to "pay-grade"

3.11.2. Ability to organize and deliver significant and complicated projects

3.11.3. True Experience-Based:Proficient at solving non-routine and complex design problems

3.11.4. Most small firm leaders use this model

3.11.5. deep experience but engage in routine projects

3.12. Efficiency-Based

3.12.1. Profitability depends on volume and productivity

3.12.2. Focused on less-expensive project delivery

3.12.3. Narrow range of services

3.12.4. Clients looking for standard solutions and quick turn arounds

3.12.5. Do Significant amount of routine work

3.12.5.1. Hire less experience for production assistance

4. General partnership

4.1. Does not pay federal taxes. Each partner's share of income passed thru individual's tax return

4.2. Every state has their Uniform Partnership Act: Defining ownership and control of a partnership

4.3. 2 or more architects

4.4. All partner actively participate in management

4.5. Each general partner is potentially liable for the other. Up to their personal assets

5. Sole Proprietorship

5.1. Tax Perspective: a Disregarded entity. All Income is files thru owner's tax return and only taxed there.

5.2. May be given its own name. In legal terms not independent identity

5.3. No liability protection

5.4. Disssolves upon owner's death

6. LLP -Limited Liability Partnership

6.1. Offers liability protection not available to general partnerships

6.2. Personal assets protected except for fraud and extreme wrongdoing

6.3. Written partnership and LLP Certificate filed with Secretary of State's Office

7. Publicly Traded /Subchapter C Corporation

7.1. Limited overlap among participants

7.2. Controlling ownership is typically held by outside stockholders not actively involved in management of firm

7.3. Large firms with publicly trade in the stock exchange

7.4. Taxes paid on their income

7.5. Double Taxation

7.5.1. After-tax credit profits can be passed through to the stockholders in form of dividents to be taxed a second time in the stockholder's individual tax return

8. Closely Held/Subchapter S Corporation

8.1. The most common legal structure for firms(28%)

8.2. S Subchapter: no more than 100 stockholders. US or residents may not elect to pay federal taxes

8.2.1. Individual stockholder's tax return

8.2.1.1. Profits in the form of dividends

8.2.1.2. Limited amount of corporate losses

8.2.2. To ensure ownership remains in corporation a stockholder agreement contains restrictions on the transfer of stock

8.3. Some stockholders also act as corporate director and officers

8.4. Owned by stockholders actively engaged in the practice

9. Business Corporation

9.1. Most Common form of legal entity

9.2. Participants

9.2.1. Officers

9.2.1.1. Elected by Directors

9.2.1.2. Carry day-to-day management of the corporation

9.2.2. Stockholder

9.2.2.1. Owners. Have Shares of stock

9.2.3. Directors

9.2.3.1. Elected by stockholders

9.2.3.2. Responsible for broad policy decisions

9.2.3.3. Have Fiduciary duty to act in their best interests

10. Professional Corporation

10.1. Rarely selected in states where architects may also practice as business corporation

10.2. Subject to further restrictions on ownership, liability protection, and insurance

10.3. In some states the professional corporation is the only only permitted for a firm

11. LLC

11.1. Participants

11.1.1. Members are owners of LLC

11.1.1.1. Personal assets other than ownership are protected against liability for business claim except for fraud or extreme wrongdoing

11.1.1.2. Remains liable for their own negligence even when acting on behalf of the corporation

11.1.2. Managers are elected by members

11.1.2.1. Typically responsible for both policy and day-to-day managements of the LLC

11.1.2.2. Have fiduciary duty to act in their best interest

11.2. Closely held

11.2.1. May also act as managers

11.2.2. Owned by members actively engaged in the practice

11.3. Tax Purpose: May elect to be treated as

11.3.1. If, will not pay federal taxes instead, a member's share of income and losses are passed thru the individual tax return

11.3.1.1. Sole Proprietorship

11.3.1.2. partnership

11.3.2. Corporation

12. Government Filing Requirements

12.1. Secretary of State's Offices

12.2. State Architectural Registration Board

12.2.1. COA: Certificate of Authorization

13. Considerations

13.1. Informal Management Practices

13.1.1. Titles define responsibilities for project and firm management

13.1.1.1. Associates

13.1.1.2. Principal

13.2. Actions on behalf of the firm

13.2.1. Signing contracts

13.2.2. Issuing letters and drawings.

13.2.3. Legal documents

14. STARTING AN ARCHITECTURAL FIRM

14.1. Global Practice

14.1.1. collaboration with local associate firms

14.1.2. Advance in technologies and telecommunications

14.2. Collaboration

14.2.1. Contract Production staff

14.2.2. Constructions phase with contractors

14.2.3. Consultants

14.2.4. Architect-Led Design-Build

14.3. Infrastructure

14.3.1. File-sharing technologies

14.3.2. BIM

14.3.3. Online project communications

14.3.4. Multiplatform collaboration

15. Financial Setup

15.1. Marketing

15.1.1. Social Media

15.1.1.1. 1. Who is potential audience

15.1.1.2. 2.Motivations and objectives behind

15.1.1.3. 3. Commitment and level of effort to maintain applications

15.2. Financial Resources

15.2.1. SBA Loans

15.3. Infrastructure

15.3.1. Telecommunications

15.4. Logistics

15.4.1. Facilities

15.4.1.1. Shared offices

15.4.1.2. Rental Office Spaces or "executive" suites

15.4.1.3. Coworking Spaces

15.4.1.4. Virtual Offices

16. Purpose

16.1. Ethical & Socially responsible

16.2. Image, reputation & brand

16.3. Align w/business model

16.4. Financial Goals

17. Finance

17.1. Community Giving

17.2. Reduced waste

17.3. Budget tracking and control

17.4. Financial Planning

18. Marketing

18.1. Align message w/purpose

18.2. Marketing budget

18.3. Outreach to new prospects

18.4. Improve marketing processes

19. Operations

19.1. Align continuing education with purpose

19.2. Operation budgets

19.3. Market operational successes

19.4. Improve production processes

20. ENTREPRENEURIAL PRACTICE

21. Why Firms Fail

21.1. 1. Lack of or inability to execute a business plan

21.2. 2. Slim or no-revenue pro forma (projections)

21.3. 3. Limited Business Opportunities

22. WHY?

22.1. Why Business Use Strategic Planning

22.1.1. Create positive changes and outcomes that align with values and professional aspirations

22.2. DESIGNING A FIRM

22.2.1. Programming

22.2.1.1. Determine Client's need

22.2.2. Schematic Design

22.2.2.1. Creative, big picture Concepts

22.2.3. Design Development

22.2.3.1. More Defined building Systems

22.2.4. Construction Documents

22.2.4.1. Detailed drawings and specifications

22.2.5. Construction Contract Administration

22.2.5.1. Assessing and maintaining progress

22.3. STRATEGIC PLAN

22.3.1. 1. MISSION

22.3.1.1. Purpose of the Firm

22.3.1.1.1. Mission Statement

22.3.2. 2. ViISION

22.3.2.1. Firm's aspirations for the future

22.3.2.1.1. well articulated vision regardless of size

22.3.2.1.2. Time-oriented (5 to 10 years)

22.3.3. 3. ISSUES AND INITIATIVES

22.3.3.1. What works, what doesn't work, what opportunites lie ahead?

22.3.3.1.1. Issues: obstacles, circumstances, attitudes that stand in the way of a firm's achieving its vision

22.3.3.1.2. Initiatives: positive ideas and activities that would proper the firm to its vision

22.3.3.1.3. Engage w/ third party consultant

22.3.3.1.4. Written report

22.3.4. Goals in Management

22.3.4.1. Quantifiable, measure targets

22.3.5. Strategies

22.3.5.1. Good Ideas to pish the firm in the righ direction

22.3.6. Action Plans

22.3.6.1. Who is going to do what, and by when?

22.3.7. Implementation and Communications

22.3.7.1. Sharing the plan and keeping in track

23. uyihib

23.1. PREPARING FOR PLANNING

23.1.1. Conducting Research

23.1.1.1. External Resources

23.1.1.1.1. Industry and general business reports: publications

23.1.1.1.2. Published data

23.1.1.1.3. Firm's own survey of marketplace perceptions

23.1.1.2. Internal Resources

23.1.1.2.1. Employee Survey

23.1.1.2.2. Interviews with key managers

23.1.1.2.3. Financial Reports

23.1.2. Analyzing the Findings

23.1.2.1. EXAMINE: Objectively and Dispassionately

23.1.2.2. SWOT: Strengths, Weaknesses, Opportunities, Threats

23.1.2.2.1. TOP Row: Internal Factors of strength and weaknesses

23.1.2.2.2. LEFT Column: Positive items. RIGHT Column: Negative items.

23.1.3. Preparing the Strategic Planning Team

23.1.3.1. Provide Results

23.1.3.2. Give homework assignments

23.1.3.3. Obtaining valid input into the planning process

23.2. DEVELOPING THE PLAN

23.2.1. Strategic Planning Team

23.2.1.1. Operations

23.2.1.2. Administrative

23.2.1.3. Size of the Team

23.2.1.3.1. 6-12

23.2.1.4. Responsibilities of the Team

23.2.2. Planning Workshop

23.2.2.1. Set up WORKSHOP. "Special" atmosphere to brainstorm

23.2.2.2. Prioritize issues and initiatives to be included in workshop

23.2.2.3. CONCENSUS: Even those with different ideas are convinced by the group's actions

23.3. IMPLEMENTING THE STRATEGIC PLAN

23.3.1. Implementing the Plan

23.3.1.1. Implementing into EVERY DAY's job

23.3.1.2. Consider the champion to be "project manager" with firm leader as "principal-in-charge" for the entire plan

23.3.1.3. Regular meetings

23.3.1.4. Manage established deadlines by using agenda

23.3.1.5. Keep plan active and relevant

23.3.2. Communicating the Plan

23.3.2.1. Involve the entire staff

23.3.2.2. Communicate its highlights to all staff members

23.3.2.3. Share the entire plan

23.3.2.4. Report progress often

23.3.2.5. Use plan as opportunity for open and transparent communication

23.4. MAINTAINING A STRATEGIC PLANNINC CULTURE

23.4.1. Talk about it

23.4.1.1. Firm leaders discussion with stakeholders

23.4.1.2. Communication to all staff

23.4.2. The firm leader's role

23.4.2.1. Rally others to share a vision for future

23.4.2.2. Determine how to get there

23.4.3. Updating the plan

23.4.3.1. keep it fresh

23.4.3.2. keep it up-tp-date

23.4.3.3. Keep it relevant