Appraiser Trainee Running Their Own Business?

[ucbruin]

UC, the OP's question for him/her to own their own business

Not for his/her immediate supervisor to open up their own business and then hire them as a trainee

Understood....

 

[bnmappraisal]

In this specific scenario....
The employee has the upper hand....
70 years old employee not looking for volume....
And employer a trainee that will require at least 5+ years to get on appraisal panels....

Ugh ... you made me do some homework

http://www.myfloridalicense.com/dbpr/servop/testing/documents/FREAB_Printable_LawBook.pdf

"475.6221 Employment of and by registered trainee real estate appraisers.— (1) A registered trainee real estate appraiser must perform appraisal services under the direct supervision of a certified appraiser who is designated as the primary supervisory appraiser. The primary supervisory appraiser may also designate additional certified appraisers as secondary supervisory appraisers. A secondary supervisory appraiser must be affiliated with the same firm or business as the primary supervisory appraiser and the primary or secondary supervisory appraiser must have the same business address as the registered trainee real estate appraiser. The primary supervisory appraiser must notify the Division of Real Estate of the name and address of any primary and secondary supervisory appraiser for whom the registered trainee will perform appraisal services, and must also notify the division within 10 days after terminating such relationship. Termination of the relationship with a primary supervisory appraiser automatically terminates the relationship with the secondary supervisory appraiser. 17 (2) A registered trainee real estate appraiser may only receive compensation through or from the primary supervisory appraiser. (3) A supervisory appraiser may not be employed by a trainee or by a corporation, partnership, firm, or group in which the trainee has a controlling interest. History.—s. 3, ch. 2001-274; s. 14, ch. 2003-164; s. 81, ch. 2004-5; s. 7, ch. 2006-198; s. 5, ch. 2013-144"

And just to reiterate (at least for the state of FL)
"(3) A supervisory appraiser may not be employed by a trainee or by a corporation, partnership, firm, or group in which the trainee has a controlling interest."
(my bold)
Again, I'd tell the OP to check with their state but I doubt most states have much different verbiage

 

[Eli]

Agree with Kennedy post above.. Employee/independent contractor law is a fine line. It could burn some AMC's before it's over on employee/independent contractor law. Easily.

 

[ucbruin]

Perhaps "employee" regarding the OP is an incorrect term....
The supervisor will be a 1099 contractor....

OP will have to do his homework....

 

[Eli]

Consult a CPA/Tax Accountant and an Attorney before doing anything else. Do a "what if" ..........:

I'll ditto Mike's post. As the owner, you don't want your independent contractor to be classified as an employee. The IRS will put you through hell. A state government can do the same thing as the IRS.

In fact, state governments' are becoming more independent along those lines, quickly.

 

[NachoPerito]

Great idea if it works. Your Supervisor will need to pull in clients as you will depend on them for that. That may be difficult. And then if your supervisor quits then you have go find someone else into this arrangement, which would be difficult.

 

[Cooper8]

Maybe each state is different and I'm not going to look it up, but ... Past CE courses (live courses, NOT online) seems that this becomes a conflict of interest

As the instructor (I've taken several CE with him and this always comes up in the STATE LAW part of the course) - I paraphrase - basically, how can a "supervisor/mentor" do their job if someone below their Certification, AND IS A TRAINEE, OWNS the company .... i.e. As the owner (BUT AM A TRAINEE!) I was just wondering if MY (owner) opinion of this property states XYZ, what do YOU (Supervisor, but EMPLOYEE!) think of THIS analysis? Oh you disagree? Bye Bye ... Next employee .... and so on ...

That's why it doesn't work

That's valid point. I didn't consider that angle.

 

[Cooper8]

I'll ditto Mike's post. As the owner, you don't want your independent contractor to be classified as an employee. The IRS will put you through hell. A state government can do the same thing as the IRS.

In fact, state governments' are becoming more independent along those lines, quickly.

Yes, my supervisor would be an independent contractor, not an employee.

 

[Cooper8]

Great idea if it works. Your Supervisor will need to pull in clients as you will depend on them for that. That may be difficult. And then if your supervisor quits then you have go find someone else into this arrangement, which would be difficult.

Right, I have thought about this scenario. My supervisor and I have a great relationship BUT no one can predict the future and what if he has health problems or decides he want to retire, etc. That could be problematic.

 

[ucbruin]

Yes, my supervisor would be an independent contractor, not an employee.

Check out a partnership....