Structuring Your Architecture Firm
Choosing your legal entity affects your taxes, your liability, and your ability to bring on partners.
The Options
| Entity Type | Liability Protection | Taxation |
|---|---|---|
| Sole Proprietorship | None. Personal assets at risk. | Pass-through (Schedule C). |
| Limited Liability Company (LLC) | Protects personal assets from general business debts. | Pass-through. Highly flexible. |
| Professional Corporation (PC / PLLC) | Required in some states for licensed pros. Protects you from a partner's malpractice. | Can be taxed as S-Corp or C-Corp. |
Note: Some states (like California and New York) do not allow architects to form standard LLCs; you must form a Professional Corporation (PC) or Professional LLC (PLLC).