Appraiser Trainee Running Their Own Business?

[Overimprovement]

My supervisor is nearing 70 and not tech savvy. He has no desire to start a company, put up all the upfront costs of getting his own software, E&O etc. He doesn't have a non compete, just doesn't have the desire.

But if you started the business, wouldn't you be handling all that? I would think he has to have his own E&O already, being a CG. Basic software package is not that much. LLC or LLP filing fees are trivial in most states.

You don't 'need' you own business to get your own orders, just your own certified level license. Helps at tax time, but not a requirement.

Guess I'm still not seeing how you starting a company and having him as a contractor is any different in reality than him having his own business and having you as a contractor. If the same person (guessing its you) is paying for everything either way, it seems the differences are trivial.

Talk to an accountant and look into a partnership, as UC mentioned. May offer the middle ground that makes him happy...

 

[Deleted member 152047]

This arrangement would be illegal in Florida. Read your state law carefully. Regardless, it sounds like you are in need of a new/better mentor. Also, waiting a couple of years to get certified is not an inordinate amount of time. If you are not a perpetual trainee, then you need that time to learn.

I like your entrepreneurial spirit though, it will serve you well in this business.

 

[Cooper8]

Yea, I will definitely check more into our state law before I dive into anything. Thanks!

 

[Dale Floyd]

I’ve read nothing that prohibits a non-appraiser from owning an appraisal firm and hiring appraisers, trainees, and non-appraisal staff to do appraisal work.

Heck - I know of medical facilities that are owned by non-medical folks. Banks that are owned by private entities. Accounting tax firms that have primary stock holders who have never prepared a single tax form.

If a non-appraiser can be an owner, then certainly one with a trainee’s certificate can too. I think we confuse company ownership with being the supervisor, by definition.

 

[Deleted member 152047]

I’ve read nothing that prohibits a non-appraiser from owning an appraisal firm and hiring appraisers, trainees, and non-appraisal staff to do appraisal work.

Heck - I know of medical facilities that are owned by non-medical folks. Banks that are owned by private entities. Accounting tax firms that have primary stock holders who have never prepared a single tax form.

If a non-appraiser can be an owner, then certainly one with a trainee’s certificate can too. I think we confuse company ownership with being the supervisor, by definition.

Again read your state's law. It would be illegal in Florida.

 

[Cooper8]

Again read your state's law. It would be illegal in Florida.

Agreed. I plan to put in a phone call to the state to make sure but I can’t imagine why I wouldn’t be allowed.

 

[Dale Floyd]

I’ve read the law. Also reviewed the Florida law after your post. I think you are viewing things that are different as though one correlates with the other. Being a supervisor regarding matters of appraisal licensing has NOTHING to do with who owns a business. Separate animals. Paying commissions, leases, and rents have no correlation to being a supervisor of a trainee’s appraisal report from what I read. Just my opinion of course.

Let’s look at a real life scenario from a peer that I recall - Aged CG wants to retire, and his grandson wants to become an appraiser. You are saying Junior can’t start an appraisal firm with his granddaddy reviewing and signing his appraisals during the trainee period? I see no laws that would be broken personally.

 

[The Warrior Monk]

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

That is a really bad idea.

There is one fact that must be recognized in this situation: You are a trainee, and cannot prepare appraisers with direct supervision.

In other words, you cannot be an independent contractor; i.e., you must be an employee of the supervisor.

 

[DTB]

That is a really bad idea.

There is one fact that must be recognized in this situation: You are a trainee, and cannot prepare appraisers with direct supervision.

In other words, you cannot be an independent contractor; i.e., you must be an employee of the supervisor.

Firm
Supervisor; 1099 contractor of the firm
Trainee; employee of the firm

Not a tough setup to make.

 

[Cooper8]

That is a really bad idea.

There is one fact that must be recognized in this situation: You are a trainee, and cannot prepare appraisers with direct supervision.

In other words, you cannot be an independent contractor; i.e., you must be an employee of the supervisor.

It is my understanding that I can own my own business as an appraiser and hire my supervisor as an independent contractor. I will continue to do appraisals as a licensed trainee (who also happens to own the company). I have not read anywhere that a trainee has to be an "employee" of the supervisor. Can you point me to the resource that says otherwise? I will not be an independent contractor, but rather self employed.